Sources of public financing in local sales of automotive spare parts in the city of Portoviejo

Abstract

The search for sources of financing for companies is currently a necessity as an alternative to solve their economic problems, increase investment, or cover their obligations. The objective of this article is to identify the sources of public financing used by small and medium sized companies that sell automotive parts in the city of Portoviejo. To this end, a descriptive, field research with a non-experimental, transversal design was carried out, applying the survey technique by means of a questionnaire. The sample was made up of 106 micro-entrepreneurs of automotive parts small and medium businesses in the city of Portoviejo. Among the main results, 64% of the total number of people surveyed have requested loans, of which 43% have been financed with loans from public banking institutions, due to the interest rate applied, although 14% consider that access to these loans is complicated by requirements that cannot be waived. The results achieved allowed us to conclude that the level of accessibility and conditions imposed by public credit entities are attractive to microentrepreneurs, requiring precise actions that satisfy client needs, with investment capital being necessary where public banking represents an alternative for their businesses.