Impact of credit financing on the profitability of SMEs in the province of Guayas, 2020-2021

Abstract

DOI: https://doi.org/10.46296/rc.v8i16.0392

ABSTRACT

The research analyzed the impact of credit financing on the profitability of small and medium-sized enterprises (SMEs) in the province of Guayas during the period 2020–2021. The main objective was to determine the extent to which access to business credit influenced financial indicators such as sales revenue, net income, equity, and assets. The study was conducted using a quantitative, descriptive, and non-experimental approach, drawing on financial statements from the Superintendence of Companies, Securities, and Insurance of Ecuador and records from the Central Bank of Ecuador. The results revealed that although SMEs increasingly accessed financing during the two years analyzed, this did not always translate into improvements in net profitability. While the services sector managed to consolidate positive profits thanks to more efficient use of credit, sectors such as commerce, construction, and industry faced losses derived from high financial costs and limitations in debt management. The study concludes that credit is a key instrument to sustain liquidity and business continuity, but its effectiveness depends on the strategic management of resources, financial planning, and the administrative capacity of each sector.

Keywords: credit financing, profitability, SMEs, province of Guayas.