Financing and profitability of commercial enterprises in La Libertad, 2022

Abstract

Financing is very important for the operation of commercial enterprises, its proper management through loans allows resources to be invested for the expansion of business; therefore, the resources obtained from different sources of financing must be managed properly with the intention to ensure a profitability of considered levels. The purpose of this article is to determine how financing affects the profitability of commercial enterprises in the canton of La Libertad, through the analysis of each of the indicators of the variables of study, therefore a descriptive research was used through the desegregation of variables, and situational analysis of the object of study, applying the techniques of interviews and direct observation, in addition correlational research was used to determine the critical factors associated with financing and profitability, through surveys of the companies that were part of the study. The results obtained show that the accounting that the companies are doing is empirical and not very technical, which has caused them to grow slowly compared to medium-sized companies of the same type, which through adequate financial management has favored their sustainable growth and decision making.