Impact of Microcredits and their Relationship in Female
Entrepreneurship, Quevedo – Ecuador, 2021
Peña-Rivas Justa
1a
, Maldonado-López Sandra Betzabeth
1b
Garzozi-Pincay René Faruk
1c
,
Garzozi-Pincay Yamel Sofia
2d
and Nieto-Quinde John Alfredo
1e
1
Universidad Estatal Península de Santa Elena, La Libertad, Ecuador
2
Universidad Católica Santiago de Guayaquil, Ecuador
Keywords: Microcredits, Women Entrepreneurs, Socioeconomic Development, Life Quality, Poverty Reduction.
Abstract: The purpose of this article is to analyse the impact that microcredits have on the economic activity of the
entrepreneurial population who need to improve their life quality and reduce poverty in Quevedo, Los Ríos
province. It is known that microcredits, potential creditors of financial resources to improve the
socioeconomic situation of families; usually, these are granted to people from middle and lower social strata
who seek to rely on the perspective of entrepreneurs or independents. This study was carried out through an
exploratory-descriptive investigation, in which surveys were applied to the economically active female
population, with micro-business activities. As a result, it was obtained that 66.48% of the women
entrepreneurs of Quevedo stated that the microcredits received from public and private banks, influenced the
improvement of the life quality and the poverty reduction in their homes, and driven in turn to the
socioeconomic development of families throughout the canton.
1 INTRODUCTION
Microcredit is a term which has gained popularity in
last two decades in fields range from academic,
economic, to media, since it refers to financial
services provision to people or groups whose access
to traditional banking systems is limited or non-
existent by virtue of their economic condition; This
financial service is usually given as investment
mechanisms, savings, or monetary loans (Arce,
2006). The microcredit concept or also called
microfinance is usually defined under tautological
and economistic forms as “personal loan set
operations which a financial institution grants as very
small loans and, generally, for short terms”
(Espinosa, 1998).
At global level, microfinance has gained
significant weight in various countries’ economies
since it can be understood as financial tool to develop
a
https://orcid.org/0000-0001-5049-502X
b
https://orcid.org/0000-0002-4617-1580
c
https://orcid.org/0000-0003-1779-9384
d
https://orcid.org/0000-0003-4708-6350
e
https://orcid.org/0000-0003-0292-5325
a business or entrepreneurship idea aimed at
improving quality of life and reducing population’s
poverty (family) or medium-low social stratum, who
do not have economic resources enough to live with
dignity (Rodríguez-Garcés, 2008), since these people
do not have real guarantees, and they are not subject
to get credit by traditional financial institutions due to
high risk involved (Samaniego-Namicela, 2014).
In Latin America, microcredit promotion is
recorded in relation to microfinance institutions’
appearance specialized in promoting small
businesses, non-governmental organizations, and
entrepreneurship (Cepal, 2002); the two last ones are
considered representative Latin American’s and
Caribbean region for socioeconomic development
due to their contribution to increased production and
employment (Cuasquer & Maldonado, 2011). In the
Global Entrepreneurship Monitor’s reports GEM
2017, Ecuador, Colombia, El Salvador, México, and
Justa, P., Sandra Betzabeth, M., René Faruk, G., Yamel Sofia, G. and John Alfredo, N.
Impact of Microcredits and their Relationship in Female Entrepreneurship, Quevedo – Ecuador, 2021.
DOI: 10.5220/0011601200003581
In Proceedings of the 2nd International Conference on Finance, Information Technology and Management (ICFITM 2022), pages 5-13
ISBN: 978-989-758-628-6
Copyright
c
 2023 by SCITEPRESS – Science and Technology Publications, Lda. Under CC license (CC BY-NC-ND 4.0)
5

Paraguay were highlighted as the highest rate
entrepreneurship countries carried out by medium-
low social stratum population who seek family
socioeconomic improvement; these being focal point
for financial entities, especially savings and credit
cooperatives that grant microcredits.
In Ecuador, microcredit was born in 1879,
through the "Sociedad de Artesanos Amantes del
Progreso" (Jácome & Cordobés, 2003), obtaining a
reduced impact due to credit limited amount.
Currently, this financial product is the most required
by country’s entrepreneurial population since it
finances small-scale production, marketing and
service activities, whose main payment source in
sales results or income generated by said activities,
appropriately verified by financial institution or
lender (Cuasquer & Maldonado, 2011).
Despite the fact that entrepreneurship and new
businesses have a greater weight in the economic
growth of the region, the vast majority of small
business establishments in the so-called informal
economy do not have regular access to the
conventional credit mechanisms offered by the
formal financial system. , even though it is necessary
to recognize that significant progress has been made
in promoting new options that allow resources to be
channelled to a growing number of small and micro-
enterprises that, however, mostly meet the
requirements demanded by banks to be considered as
formal companies and at the same time as credit
subjects for financial entities (Chacaltana, 2004;
Aristizábal-Velásquez, 2007).
Whereas family socioeconomic development is
identified as unstable due to inequity in resources’
distribution and middle-low social’s impoverishment,
composed of mostly economically active men and
women; Despite this weak situation, population’s
persistence to reduce the poverty level in family
economy, notably enterprises as a livelihood and life
quality improvement, giving to nation the mention as
one of the countries with higher annual undertakings
level. Although these ventures are carried out by both
men and women in several industry areas, it is worth
noting that female population’s incorporations in
market through business ideas has propitiated
microcredits appearance and offers in grate
magnitude by various financial institutions.
Under this perspective, in Los Rios province,
specifically in Quevedo city, controversy has been
generated regarding the microcredits offered to the
entrepreneurial population, who through new
business ideas seek to improve the family economic
situation and reduce of poverty in sector. It is known
that this financial result over the years has been in
greater demand by male population, also known as
"household leaders", given its main development with
ventures related to livestock, agriculture, industries,
services, and tourism which require constant
monetary investment to remain in market.
In the same way, the female population has a large
participation in labour market with large significant
contributions to economy’s sector, standing out in
service and marketing sectors. Women’s
incorporation into labour market through
microcredits has meant entering a world defined and
built what already exists’ basis in creation,
transformation, and commercialization, to support
their families, they take household leader position or
complementary leader. It is useful to clarify that
women who join labour markets use microcredits and
they have a cultural dimension, considering that the
spaces where a battle takes place against women and
large companies, where they try to recognize
themselves as productive people and to prove it
socially, they engage in a "struggle" that is the
meaning of what their workforce is (Maldonado-
Lagunas, 2007).
This main article’s objective is to analyse
microcredits’ impact have on entrepreneurial
population economy activity that needs to improve
their life quality and reduce poverty in Quevedo city,
in Los Ríos province. From this initial
characterization, this study is structured in four
sections; in the first one recapitulates all microcredit
relationships in family socioeconomic situation about
both men and women entrepreneurs; Next, research's
general development is carried out, starting from
theoretical documentary to the results’ applications
data collection techniques. The third part develops
methodology applied to determine microcredits
impact on family economy, starting from
economically active female population; In fourth and
last section it is possible to appreciate the results’
discussion achieved on this ongoing topic. And
finally, the author’s research contributions are
described, towards these event’s possible extension
related to other variables.
2 LITERATURE REVIEW
Worldwide, small business establishments’ vast
majority in informal economy still do not have
regular access to the conventional credit mechanisms
offered by formal financial system, even though it is
useful to recognize that significant progress has been
made in promoting new options that allow resources
to be channeled to a growing number of small and
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micro-enterprises that, however, mostly meet
requirements demanded by banks to be considered as
formal companies and at the same time as credit
subjects for financial entities.
In several world regions, especially in Ecuador, credit
has become one of the most requested mechanisms by
entrepreneurs when it comes to financing their
business initiatives or business ideas, since this
mechanism is not within reach for entire population
in a region or sector, especially because they are not
credit (Aristizábal-Velásquez, 2007). Whereas,
limited financial availability instruments suited to
enterprises and micro-enterprise's needs, leads them
to depend a lot on their own resources and on
another's financing suppliers, both for business and
expansion projects or creation current operation. The
financing problem is bigger when it comes to the
creation of new business projects. Some
consequences of this lack of financing are low
production scales and technological backwardness
(Llistery & Angelelli, 2002).
In Latin America, microenterprises employ more than
half of the economically active population, whose
participation in national production usually varies by
up to 50% depending on corresponding country, since
it is this population that generates growing interest in
their development as a way of reducing poverty,
generate jobs, and contribute to families’
socioeconomic well-being, as an alternative to
stimulate the entrepreneurial spirit. Therefore, within
finance market, a financial product is offered, which
is intended for this population to encourage them to
develop business ideas and turn them into ventures
that serve as an effective means of reducing negative
aspects in the economy.
2.1 The Microcredit Development in
Ecuador
In the last fifteen years, microcredits or also called
microfinance have presented an explosive growth in
Ecuador; Not only has there been an increase in
money funds aimed at microfinance, but also a
change in focus, which is no longer focused on credit,
but rather on financial service provision in its broad
spectrum, from capturing savings, payment
instruments, sending and receiving remittances,
insurance and risk management, to non-financial
services such as health insurance, mortuary services
and others.
However, it should be mentioned that this process
is still expanding, through specific products’ design
according to microentrepreneurs. Institutions that
have dedicated themselves to providing microcredit
services in Ecuador discovered a huge development
potential niche with an excellent payment culture and
facing possibility in high interest rates, since the
alternative of borrowing in the informal market is still
much more onerous. The microcredits strengthening
must be understood as the increase in access to
financial services by the population with lowest
resources; In this way, microfinance stands out as a
promising and cost-effective tool to fight poverty
(Carvajal et al, 2006).
2.2 Microcredit as a Strategic Tool to
Reduce Poverty
The term poverty definition has been elaborated and
has been measured based on deficiencies or
unsatisfied basic needs, in which indicators have been
used such as the intake food amount, income level, to
health services access, education and housing
(Arriagada, 2004). This approach assumes that well-
being is equivalent only to ability to satisfy physical
survival basic needs (usually food) and the ability —
measured— of the income generally obtained by
men, to choose between various “packages of
products” (Kabeer, 2003).
By including these three aspects, gender perspective
studies perspective have played an important role in
calling for recognition and confirmation that poverty
is a dynamic, multidimensional problem, closely
related to income and consumption indicators, and
that when the latter are scarce, the only thing that can
compensate for their limited presence is adequate
housing conditions, access to public services and
medical attention that family members group should
have, however this scenario is rarely fulfilled and
those who are severely affected are women and
children (Moser, 1996).
Micro-financing is based on assumption that poor
need access to productive capital to trigger it in
activities that allow them to overcome poverty
conditions; in them, self-employment and family
participation are generally required, and when they
are owned, efficient natural management resources is
necessary to guarantee economic self-sustainability
units (Garza-Bueno, 2005). Micro financing
contemplates, as an essential part, financial
institutions intervention’s low-income population’s
purpose of meeting the needs, this response strategy
became necessary due to systematic exclusion that
commercial banks made population in need. of these
financial services.
Impact of Microcredits and their Relationship in Female Entrepreneurship, Quevedo – Ecuador, 2021
7

2.3 Women Incorporation in the Labor
Markets and Its Relationship with
Microcredit
Women incorporation into labor market through
using microcredits has meant entering a world
defined and built by men, which can only function
way it does because it is rested, supported and reliant
on housework. However, it is necessary to clarify that
the labor markets - to which women are integrated to
use microcredits - have a cultural dimension, they are
spaces where great women and men takes battle place
who try to recognize themselves as productive people
and therefore demonstrate it socially, they engage in
a "struggle" that is the meaning of what their
workforce is (Maldonado-Lagunas, 2007).
Female population faces several obstacles that are
presented to them in each business activity phase;
Although men also experience some of these
obstacles, women face additional restrictions daily.
The restrictions and barriers that may have
greatest impact are the following:
Table 1: The barriers of microcredit in the female gender.
Self-esteem
problems
Sometimes women do not believe
they can have structuring
possibilities their action field in
family and social order of greater
entre
p
reneurshi
p
.
Social and cultural
order
Negative attitudes are presented
towards women affect their
performance in business since they
must fulfill other functions outside
b
usiness environment.
Occupational
Less chance is offered to pregnant
women in economic structure in
development terms on their
ca
p
abilities, the
y
ma
y
p
ossess.
Legal
Restrictions to which women are
subjected in independent judicial
action terms.
It can be observed most of the limitations that are
presented to female entrepreneurial population are
about sociocultural nature and this brings with it risky
changes in environment activities in which they
operate, which concerns self-education evaluation,
family, and social participation. Despite the
restrictions they manage to form their company and
choose to create small business ideas instead of
structuring medium or large companies, this in
relation to the disproportionate women entrepreneurs
who focus on these ideas.
Therefore, few women who manage to cope with
restrictive conditions that are presented to them,
manage to forge the entrepreneurial character, and
break cultural paradigms where a woman cannot
carry out the same activities as a man, denoting
herself in the business field.
2.4 Microcredit from the Perspective of
Female Entrepreneurship
Microcredits are known as small credit granting
programs to the most poor’s needy so, they can start
small businesses which generate income with which
they can improve their family’s living standard
(Flores, 2007). Granting credits to those most in need
is essential for country's economy since through this
an opportunity is given for women entrepreneurs to
establish their businesses and offer jobs to other
women and encourage them to grow as entrepreneurs
and follow the same steps as them. have been giving
and thus be able to destroy the restrictions that arise.
Microcredit is defined as: "it is any credit not
exceeding 20,000 American dollars to a loan whether
it is a company constituted as a natural or legal person
with an annual sales level of less than 100,000
American dollars, a self-employed worker, or a group
of borrowers with joint guarantee, intended to finance
small-scale production, marketing or service
activities, whose main payment source is sales
product or income generated by such activities,
properly verified by financial system institution
(Banco Central del Ecuador, 2015).
For most of the banks in Ecuador, microcredit
represents a fundamental income for each of its
institutions since they are the ones that are most
carried out in bank loans consequences since it is
observed that financial institutions offer loans for
ventures with an interest rate extremely reasonable
because of interest offered by bank loans. The poverty
situation in which the most disadvantaged are
trapped, makes them seem useless and without any
initiative, but this is not true. If these "disabled" are
provided with credit, they will use their innate
abilities to start a small business with which they can
increase their income level, they are true artists in
survival tasks (Lacalle & Garrido, 2008).
It is thought that poverty is mental since if one
thinks that he is poor he will stay that way for his
whole life, while others look for a way to get ahead
by overcoming obstacles that arise, is why the
financial institutions offer credits to these types of
people so that they can exploit their gifts and have a
smaller lifestyle and get ahead. To conclude,
microcredit is a tool to eradicate poverty in world
through equity in access to financial resources. These
are born as a response to the lack of people excluded
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millions credit from formal financial systems around
the world.
The systems used to define microcredit are:
─ The subjects of the loan
─ Credit size
─ Methodology with which the loan is granted or
even funds use.
Given distinction of microcredit systems, its
fundamental objective is to combat poverty by
improving poor lifestyle in the world and to minimize
the exists gap in the resources' distribution through
microenterprises creation that are profitable and will
allow them to generate income to pay credits and
improve families living conditions.
2.5 In Ecuador there are the Following
Types of Microcredits
Retail microcredit. - is any loan whose value is less
than or equal to 1,000 American dollars, these are
offered to micro-entrepreneurs with annual income of
less than 10,000 American dollars. These
microcredits are to regenerate a microenterprise that
is already in operation and thus be able to grow in its
economic level by improving productions activities to
which they are dedicated.
Simple accumulation microcredit. - These loans
whose amount is greater than 3,000 American dollars
and up to 10,000 American dollars are granted to
entrepreneurs with an annual income or less than
10,000 American dollars sales level. These credits are
granted to create an extension of company and thus
be able to offer jobs and provide a better service or
product depending on company’s activity being
carried out, improving people living standard and
eradicating poverty in Ecuador.
Extended accumulation microcredit. – is any loan
whose amount is greater than 10,000 American
dollars with a level of sales or annual income greater
than 100,000 American dollars, these loans are
offered to self-employed workers or groups of
borrowers with a joint guarantee.
These credits are to create another company or
branch in other place in Ecuador, generating more
jobs in different places in Ecuador and increasing the
company's income by offering services or products,
improving its social and economic participation in the
country, reducing the percentage of poverty. in the
country.
3 METHODOLOGY
In methodological terms, the present study is
supported by bibliographical research, taking as a
fundamental reference research and scientific articles
spread around the world, especially in Latin
American countries that make use of financial
products such as microcredits, to carry out ventures
that serve as support to family economy and the
development of a region in general. In addition,
exploratory-descriptive research was implemented,
carried out through the "survey" data collection
applied to different financial institutions in the sector
(BanEcuador, Banco Finca, Banco D-Miro, Banco
Pichincha, Fundación Espoir, and economically
active women from the Quevedo city, Los Ríos
province, Ecuador. In addition, for results’ graphical
and numerical representation of the results obtained,
statistical models and programs were used, such as
Excel for descriptive statistics, and SPSS for
inferential statistics.
For the survey’s purpose, a simple random
probabilistic sample was carried out, taken from
Quevedo’s city population 173,575, of which 86,754
inhabitants are women and 86,821 are men, data
obtained from the Instituto Nacional de Estadísticas y
Censos (INEC, 2010); Applying Alan Wester's
formula, we worked with total female population with
a confidence level of 95%, as detailed below:
Where:
N = 86754 Women
Z = 95% confidence level
P = 50% acceptance Probability
Q = 50% non-acceptance Probability
e = 5% Error degree.
n = 361
With a sample of 361 women representatives of the
Early Entrepreneurial Activity (TEA), information
was collected to identify the microcredits impact of
and their relationship with the family economy, based
on women's participation perspective in the labour
market.
4 RESULTS
Microcredit is based on credit institution mutual trust
with the population without financial resources, their
Impact of Microcredits and their Relationship in Female Entrepreneurship, Quevedo – Ecuador, 2021
9

responsibility and participation (Rodríguez-Garcés,
2008). Studies on microcredit impact have
contributed to search for development and poverty
alleviation instruments ((Rodríguez-Garcés, 2008;
Flores, 2007). The international community and
several local projects have opted for microcredit as a
tool for poverty reduction, as it is reflected in access
to education and health by the poorest in Ecuador, as
well as equality of gender and the empowerment of
women, better economic and social conditions are
perceived according to recent reports (Banco Central
del Ecuador, 2015).
To determine microcredits impact and their
relationship with women entrepreneurs’ family’s
economy in Quevedo city, surveys implementation
was used that shows real situation, from women
perspective and different financial institutions in
sector. Regarding dynamism and micro-enterprise
predisposition, people surveyed were specifically
women who seek to increase their income, 40,17%
are dedicated to sale of clothing, followed by the sale
of groceries with 34.35%, finally, 25.48% work
independently being the main priority activities in the
investment of microcredits.
Table 2. Types of entrepreneurships.
Detail Surveyed Percentage
Clothing merchandising 145 40,17
Sale of groceries 124 34,35
They work dependent 92 25,48
Total 361 100
Figure 1: Entrepreneurship types (Green: Clothing
merchandising; Blue: groceries sales; Purple: Dependent
work).
In table 3, in relation to institutions by financial sector
preferred by microentrepreneurs, total surveyed
population, 59% stated that they received better
financial services in microcredit from public sector
institutions, and 41% received from private sector,
contributing partially to family economy.
Table 3: Financial sector.
Financial sectors Surveyed Percentage
Public 213 59
Private 148 41
Total 361 100
Additionally, it was evidenced that financial
institutions most welcomed by microentrepreneurs
was BanEcuador with 34.35% due to the established
5, 5, 5 credit policy (5.000 American dollars of
amount, 5% interest and 5 years term); other
outstanding institutions in reception terms are:
Fundación Espoir 18.84%, Banco Finca 16.07% and
Banco D-Miro with 15.51%., and the difference
represents other private sector institutions (Table 4).
Table 4: Financial Institutions.
Banking Institutions Surveyed Percentage
BanEcuador 124 34,35
Espoir Foundation 68 18,84
Finca 58 16,07
D-Miro 55 15,24
Others 56 15,51
Total 361 100
In table 5, these financial entities are managed under
a gender margin preference to grant microcredits,
given that according to respondents, 85.32% of these
are granted to entrepreneur’s characteristics women
with, due to responsibility they must comply with
payment obligations on dates established. Under this
characteristic, it is determined that microcredits use
has greater concurrence by economically active
female population, who seek to obtain monetary
capital at lower short-term interests, to carry out their
business ideas without permanent indebtedness.
Therefore, it is emphasized that surveyed population
said that 85% of women microentrepreneurs consider
that the interest set by microcredit financial
institutions is within an acceptable and accessible
range based on their economic activity; on the other
hand, 14.13% were considered high for the amount
granted.
Table 5: Labour activity.
Entrepreneurial Women Surveyed Percentage
Entrepreneurial Women 308 85,32
Housewives 53 14,68
Total 361 100
Under microcredit determination in gender terms and
interest, 65% of microentrepreneurs have allocated
money received as microcredits to their businesses,
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investing in them, consolidating them in market and
increasing their income, and 35% consigned it to
general payments such as: food, housing
improvement, education, and health (Table 6).
Likewise, 66.48% of microentrepreneurs surveyed
consider that microcredits had an impact on the
family economy by improving life quality, while
33.52% contributed to poverty reduction in each
women entrepreneurs’ households, promoting
socioeconomic familied in the city.
Table 6: Destination of the microcredit.
Microentrepreneurs Surveyed Percentage
Investment 235 65
Consumption 126 35
Total 361 100
Research carried out allows us to determine
microcredits have encouraged different population
family strata economic development in Quevedo city,
78.01% of women population have received
microcredits, they consider that these have
encouraged all families development in Quevedo city,
in contrast to various authors’ investigation who
indicate that 60% of this financial product users are
less than $5,000 American dollars amounts creditors
with constantly purpose getting involved in credit
business sphere, favouring increase in credit unions
offer and to same demand. Likewise, individually,
63.87% of women microentrepreneurs expressed
total agreement that the microcredit has improved
their income and their family economic condition
(Lacalle & Garrido, 2008).
Within exhaustive analysis applied to interested
parties, city women’s strengths who seek to acquire a
microcredit are noteworthy, since they execute it
based on an idealization and entrepreneurial culture,
which makes them more attractive than men in credit
banking; Likewise, it is important to highlight that
characterize weaknesses, since most of them present
obstacles in their family nuclei terms, represented by
a high number of children and the limitations to their
educational training at all levels (Tormo & Navarro,
2012).
4.1 Microcredits Advantages in
Women Entrepreneurs’ Women's
Family Economy in Quevedo City
In microcredits impact terms on Quevedo’s city
enterprising female population family economy, the
stakeholders surveyed concluded that this financial
tool represents a means of reducing poverty levels
and improving the entire sectors’ life quality; Among
the most notable positive impacts are the following:
The setbacks of microcredits impact of on family
economy from the surveyed stakeholders’
perspective, is since this financial product manages to
provide benefits such as improving the life quality
and reducing poverty; however, they show discomfort
in codependency terms to be able to carry out an
enterprise; The most visible disadvantages are:
High interest rates items reduce women’s
entrepreneurs’ family progress in economy who are
microcredits creditors from several financial entities
in the city.
The amounts less than $5,000 dollars offer by
cooperatives and financial banks causes limitations in
business idea with ambitious short-term goals
development.
Amount recovery periods offered by financial
entities mean that in some of the nascent ventures
they are not successful in the market, since they are
limited to producing and marketing to pay off said
debts.
Another relevant disadvantage occurs in product
user population, since they occasionally allocate the
monetary value provided by financial entities to other
activities that have no relation to business type or
undertaking, for which it is difficult to be able to
make the correct loans repayment to the
corresponding entities.
5 CONCLUSIONS
To deepen nature and modalities by which Quevedo’s
city women entrepreneurs seek to improve life quality
and reduce poverty in sector, a phenomenon’s
breakdown has been developed to determine
microcredits impact on family economy
development.
These microcredits impact have had on women
entrepreneurs in terms of improving affected by
poverty population’s life expectancy. Generally, this
financial service within poverty context is directly
associated with self-employment development of,
family businesses and nascent enterprises based on
using natural resources for manufactured products,
thus emphasizing guaranteeing economic self-
sustainability; therefore, microcredit is a
socioeconomic seed growth by promoting new
production units’ creation, boosting financial
resources flow.
Regarding gender approach, it is identified that
there is a women predominance in microcredit access
to, which means that women have created a privileged
Impact of Microcredits and their Relationship in Female Entrepreneurship, Quevedo – Ecuador, 2021
11

position by overcoming paradigms about their
performance in labor market and their contributions
to family socioeconomic life and society in general.
Although men have always remained in labor market
playing the family main provider role, women have
managed to start in this context, supported by
financial products aimed at fostering new production
units and reducing poverty.
From this perspective, female microcredits
population benefiting indicates that these have
contributed to improve their families’ economy and
life quality, specifically covering housing, health,
education, food, and clothing; These improvements
are made through monthly income generated by
enterprises and businesses development that are
promoted by these financial products.
It is necessary to dissociate that the main strategy
of microfinance derives from the fact that the poor
need capital to implement it in activities that allow
them to overcome poverty levels. Because, through
the research in this article, the impact of microcredits
is identified not as a possibility of getting out of
poverty but as a lenitive in the family economy and in
the inequality experienced by the female population
who would use microcredits. Although the women
have managed to work for third parties by
establishing their enterprises in the mercantile and
commercial area, many of their projects are not self-
sustaining in the market, since the problems and
adaptations generated among those who make up the
domestic group to which they belong are not
considered. women belong.
Microcredits impact on Quevedo’s city female
population family economy, Los Ríos province -
Ecuador, has resulted in the strengthening of
specialized marketing businesses, mainly boosted by
microcredit banking and market opportunities
available, satisfied. In other words, users resort to
activities reproduction with which they have been
culturally associated, for example, making food and
domestic work, this does not mean that women do not
have knowledge or skills to carry out other types of
activities, but credit size does not allow viewing other
large-scale options in labor market.
Finally, it is concluded that female population
who have received microcredit from Quevedo city
financial institutions, the vast majority are identified
from the condition’s perspective such as common-
law marriage, number of children, housing place and
type, and poor availability basic services. Because,
managing under this subsistence condition, assuming
the operating independently idea in labor market
means flattering and with the help of microcredits
they obtain one of the fundamental tools such as
financing to run an enterprise adaptable to existing
needs, these will have predisposition to attenuate
poverty reduction and favor families involved
socioeconomic situation if it is managed efficiently.
That is why, thanks to women’s family economy
microcredits impact identification in the Quevedo
city, it gives a way to promote studies based on
microfinance and family microenterprise context in
the area, due to families’ influence in raising
businesses for life quality improvement.
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