Financial inclusion of micro entrepreneurs in municipal markets to promote economic growth

Abstract

Progress towards higher levels of financial inclusion is a challenge for the Salvadoran economy; However, there are still sectors that resist, due to lack of knowledge or distrust, the use of available financial instruments, affecting the facilitation and security of their financial transactions. This article analyzes the current degree of penetration of financial inclusion in the microentrepreneur sector of municipal markets, city of San Miguel, El Salvador to promote opportunities for economic growth, specifically findings are shared regarding access, use and evaluation of the quality of demanded financial products and services. The information was obtained through surveys of 417 microentrepreneurs, interviews with managers of financial institutions, as well as economists who are experts on the subject. Factors that encourage microentrepreneurs to adopt innovative financial instruments and reasons that drive them to reject others were identified, according to the trust they have in the Salvadoran financial system.