ANALYSIS OF INFORMAL FINANCIAL MANAGEMENT FOR MICRO-ENTERPRISES IN SECONDHAND CLOTHING IN NUEVO TARQUI, MANTA

Abstract

DOI: https://doi.org/10.46296/yc.v10i19.0934

Abstract

This study analyzed informal financial management among second-hand clothing microenterprises located in Nuevo Tarqui, Manta, in order to identify the practices used, the related risks, and their effects on business sustainability. A quantitative approach with a descriptive scope and a non-experimental design was applied. Information was collected through an in-person survey of 18 closed-ended questions administered to 20 merchants selected by convenience sampling. The data were tabulated using digital tools and presented through frequencies, percentages, tables, and figures. The results showed that 95% recorded their operations in notebooks and none used digital tools; 50% did not separate business money from personal expenses, and 100% did not assign a salary to their own work. In addition, 45% paid monthly interest above 10%, 55% reinvested less than 25% of their profits, and 85% believed that the lack of records made access to bank credit more difficult. Although 70% had an emergency fund and 65% avoided selling on credit, weaknesses remained in planning, control, and decision-making. It was concluded that accumulated experience supported business continuity but did not guarantee organized financial management. Therefore, strengthening recordkeeping, separating personal and business funds, and improving planning could facilitate access to finance and support more stable growth.

Keywords: financial management; microenterprises; informality; financing; sustainability.