Financial Strategies for Sustainability (Green Finance and ESG) and Their Influence on Entrepreneurial Ventures in Ambato Canton, Tungurahua Province, Ecuador

Abstract

Financial sustainability has become a strategic component of business development, promoting the adoption of Green Finance and Environmental, Social, and Governance (ESG) criteria as mechanisms to enhance competitiveness and foster responsible economic growth. This study aimed to analyze the influence of these financial strategies on entrepreneurial ventures in Ambato Canton, Tungurahua Province, Ecuador. A mixed-methods approach was employed, combining quantitative and qualitative techniques. Data were collected through a structured survey administered to 120 entrepreneurs, complemented by semi-structured interviews, direct observation, and documentary review. The findings revealed that, although entrepreneurs recognize the importance of Green Finance and ESG criteria in improving competitiveness, corporate reputation, and access to new market opportunities, there is still limited knowledge of these financial instruments and restricted access to sustainable financing mechanisms. The main barriers identified include insufficient technical training, limited dissemination of green financial products, and difficulties in accessing specialized credit. Nevertheless, entrepreneurs expressed a strong willingness to participate in training programs focused on sustainable finance. The study concludes that the adoption of sustainable financial strategies can strengthen entrepreneurial development, provided that effective collaboration exists among financial institutions, public organizations, academia, and the business sector to promote policies and initiatives that facilitate access to green finance and the integration of ESG criteria into business management.