The development of microcredit in the northwest of Guayaquil, Ecuador

Abstract

Microcredits are programs for granting small loans to the most needy of the poor so that they can start small businesses that generate income with which to improve their standard of living and that of their families, in 1986, the boom of microcredits in Ecuador and the city of Guayaquil, characterized by being one of the most populated entities in the country, shows the informal economy, commerce and crafts as its main economic activities, being this ideal for the acquisition of this type of financing . The objective of this article is to analyze the development of microcredits in the northwestern area of Guayaquil, Ecuador, as well as its most important aspects from a historical and general conceptual point of view and its evolution to the present. With this analysis, it was possible to conclude that the increase in microcredits over the years in the northwest area of Guayaquil, Ecuador has contributed to the social, economic and financial development of entrepreneurs in the region, which has transformed the sector into a productive commercial strip, turning its inhabitants into an upper class and upper middle class society and influencing not decisively but importantly in the permanent growth of the city of Guayaquil and therefore of Ecuador in addition to benefiting the informal economy and investment in small businesses in the area, making it an attractive shopping center for foreigners.