Impact of remittances on income and entrepreneurship in santo domingo households

Abstract

This research comprehensively examines the socioeconomic impact of international remittances on households in Santo Domingo de los Tsáchilas, Ecuador, considering their influence on both income levels and domestic productive dynamics. Using a quantitative, descriptive, and correlational approach, a structured survey was administered to 400 households selected through probabilistic sampling, supplemented with official secondary data from INEC (2023). The findings show that 38% of households receive remittances on a regular basis, registering an average increase of 42% in their monthly income compared to non-recipient households. Likewise, statistically significant correlations were identified between the amount received, the educational level of the head of household, and access to financial services, suggesting that the economic impact of remittances is enhanced when favorable structural conditions exist. In terms of productive use, 34.2% of recipient households allocate part of the remittances to business ventures, especially in commerce, services, and commercial agriculture, reflecting their potential as seed capital. However, 22.3% of households show indicators of economic dependence, which constitutes a vulnerability associated with the fragility of external income and limited productive diversification. It is concluded that remittances represent both a source of material well-being and a challenge to economic sustainability, requiring public policies aimed at promoting productive investment, strengthening financial capacities, and reducing exposure to risks associated with dependence on these flows.