The Role of Solidarity Finance in Sustainable Local Development in Ecuador

Pablo Dávila Pinto (), Sigfredo Ortuño-Pérez, Diego Mantilla Garcés and Víctor Albuja Centeno
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Pablo Dávila Pinto: E.T.S.I. Forestry and Natural Environment, Technical University of Madrid, 28040 Madrid, Spain
Sigfredo Ortuño-Pérez: University Department of Environmental Forestry Engineering and Management, University Research Institute Center I+D+I for Biodiversity Conservation and Sustainable, Technical University of Madrid, 28040 Madrid, Spain
Diego Mantilla Garcés: Faculty of Administrative Sciences, Central University of Ecuador, Quito 170521, Ecuador
Víctor Albuja Centeno: Faculty of Administrative Sciences, Central University of Ecuador, Quito 170521, Ecuador

Economies, 2025, vol. 13, issue 8, 1-21

Abstract: This study explores the role of solidarity finance in promoting local development and the empowerment of marginalized communities through financial inclusion and access to community credits. It focuses on how solidarity-based financial mechanisms provide accessible credit with fewer barriers, fostering productive activities and economic resilience. This study employed a quantitative and exploratory design, analyzing data from 51 community funds in Ecuador out of a total of 220 through a self-administered online survey, validated by auditing professionals and answered by community representatives. The 25-item questionnaire gathered data on organizational dynamics, financial practices, and perceptions of sustainability. Descriptive analysis was complemented with an analysis of variance to test hypotheses concerning associativity, self-management, and organizational performance. The results show that while associativity, self-management, and organizational management are perceived as institutional strengths, aspects such as autonomy and solidarity received lower evaluations, suggesting critical areas for strategic improvement. Notably, significant differences emerged between self-management–organization and solidarity–organization groups, emphasizing the importance of associativity (collaboration) in enhancing the sustainability of solidarity finance, which proves to be a vital mechanism for community empowerment and local development; however, its long-term sustainability depends on strengthening internal dimensions, particularly autonomy and solidarity, and reinforcing associativity as a core driver of organizational resilience.

Keywords: associativity; self-management; autonomy; solidarity; sustainability; inclusive finance (search for similar items in EconPapers)
JEL-codes: E F I J O Q (search for similar items in EconPapers)
Date: 2025
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Persistent link: https://EconPapers.repec.org/RePEc:gam:jecomi:v:13:y:2025:i:8:p:227-:d:1718464

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