Analysis Of Financial Efficiency In Msmes In Chimborazo Province Using Liquidity And Solvency Indicators In 2024

Abstract

This study analyses the financial efficiency of micro-, small-, and medium-sized enterprises (MYPIMES) in the province of Chimborazo, Ecuador, by evaluating their liquidity and solvency across key sectors such as services, commerce, manufacturing, and agribusiness. The research adopts a quantitative approach with a non-experimental, descriptive, and correlational design. Financial indicators from 106 companies were analysed using descriptive and inferential statistics, applying Pearson correlation and linear regression to assess the relationship between liquidity, solvency, and financial stability. The results indicate that the services and agribusiness sectors exhibit more balanced financial management, characterised by higher liquidity and lower dependence on bank credit. In contrast, the commerce and manufacturing sectors face higher financial risks due to elevated debt levels and reduced operational flexibility. The findings show that firms with greater liquidity achieve higher financial stability, while those with high leverage are more vulnerable to economic fluctuations. The study concludes that improving the financial efficiency of MYPIMES is essential for enhancing their competitiveness and sustainability in the current economic context.