Análisis del comercio informal y su impacto en los ingresos de los comerciantes formales del mercado cerrado de la Ciudad de Latacunga, Provincia de Cotopaxi, año 2023

Abstract

Outside the closed Latacunga market, a large number of informal traders are evident. In recent years this number has increased, generating unfair competition due to the lack of competitiveness that the formal traders have compared to informal ones. Therefore the objective of this research is to analyze informal trade and its impact on the income of merchants formalities of the closed market in Latacunga city, province of Cotopaxi, year 2023. The methodology used adopted a qualitative and quantitative approach, with a mixed, exploratory and descriptive design. Variables were analyzed and developed in a specific period; The population that was used was divided into three approaches, first we have the population of formal merchants, that of informal merchants and finally the economically active population of Latacunga city was taken into account, a field investigation was carried out where techniques and instruments such as surveys and interviews, the interview was applied to the market administrator and a survey applied to merchants and consumers. Through this methodology, it was determined that the Latacunga closed market does not have adequate administrative management, formal merchants are not satisfied due to the significant impact on their income, which leads many of them to move to the informal sector. Furthermore, there is no adequate control by the city authorities, and consumers perceive that informal commerce has caused a significant increase in crime in the area. When evaluating all points of view, it is concluded that the impact of informal trade is significant; the unfair competition that exists reduces the amount of income of formal merchants, causing them to be unable to fulfill their obligations or satisfy their needs.