Efficiency as a Competitive Factor in MSMEs to Generate Profitability

Competitiveness and efficiency are important aspects in business management as they generate a competitive advantage of sustainability in the market. The objective of this study is to determine the predominant factors that influence the achievement of efficiency and competitiveness results in MSMEs in the textile production sector. The analysis was based on the Data Envelopment Analysis (DEA) methodology, which describes the results of the input variables versus the incidence they have on the output variables of a system. The input variables considered were assets and equity, while the output variables were net income and total income. On the other hand, the hypotheses raised in this research were tested for their validity through the acceptance or rejection of the chi-square test by means of factor analysis. The research was based on a database of the Superintendencia de Compañias de Ecuador. The results obtained yielded important data showing and concluding that no region of the country exceeds 33% efficiency in its MSMEs. In addition, it was observed that the constructs of assets and equity generate influence in the generation of income and finally in the net profit, which is considered a key factor for the financial management and sustainability of a company.