Financial Sustainability of Msmes in the Market, Based on the Analysis of the Factors that Affect Their Liquidity and the Underlying Risks in Peru

Abstract

The financial problem in MSMEs is not a novelty, however, knowing which are the real factors that affect the liquidity of these entrepreneurial organizations in a developing country like Peru is a help to guide their activities in this sense, that is why the research focused on discovering according to the perception and experience of the entrepreneurs themselves the real factors that directly affect liquidity. The research is of mixed approach, having conducted interviews with fifty entrepreneurs and applied a questionnaire to thirty-four entrepreneurs having worked in total with eighty-four (84). Having managed to formulate an ordinal logistic regression model that explains 50% of the possibilities that a variation of cash sales to liquidity increases with an Odds of 30.027 times, with a confidence level of 95%. In addition, it was found that factors such as credit sales, bank loans, financial knowledge and stock management are not direct determining factors of low or high liquidity. This information will allow SMEs to focus on sales-generating activities to a large extent to avoid the risk of financial instability.