Venture investment and its effects on the demand and supply of local economies

Abstract

It is a study that proposes to solve the problem identified in the city of Macas, province of Morona Santiago, Ecuador, where popular economy businesses are established based on the experience of people linked by affinity or familiarity with the entrepreneurs, transforming this type of business into empirical in its operation, since they do not have technical studies, directly affecting the local economy with effects on the market such as oversupply. Therefore, qualitative and quantitative research at an exploratory, descriptive, analytical and prospective level is established as a study methodology for the analysis of the investment of entrepreneurship projects and their effects on the demand and supply of the local economy, which allows the determination of their permanence in the market and time. For the understanding of results, computer and statistical tools are used, the verification of hypotheses is carried out through the Chi-squaring test, determining a direct dependence between the variables and showing that only 42.58% of the enterprises know in some way the needs of the market and 65.63% of the businesses have carried out some previous study to implement their project. Given this evidence, a strategy for the efficient management of the local economy is proposed that starts with inventory and market monitoring to provide technical advice on entrepreneurship projects with an emphasis on implementing a culture of innovation with joint work between the public and private sectors.