Negative externalities and their influence on commercial microenterprises of household appliances in the Guayaquil canton

Abstract

This study examines the impact of negative externalities on household appliance microenterprises in the Guayaquil canton of Ecuador. This research seeks to analyze in detail how negative externalities directly affect microenterprises in the commercial environment of Guayaquil. It examines how these can generate unexpected costs, change customer consumption patterns, and create challenges in terms of regulatory compliance and business image management. Based on quantitative data collected from industry vendors, it is revealed that 82% of respondents are familiar with the concept of externalities in the business context, indicating a significant level of knowledge in the local business community. Perceptions of the impact of negative externalities highlight the predominant concern about operating costs (50%) and reputation with customers (40%). The results confirm that 96% of salespeople have observed a decline in sales due to these externalities, underscoring the urgency of addressing these issues to ensure economic viability. In addition, 96% believe that externalities negatively affect consumers' purchasing decisions. In terms of mitigation strategies, the adoption of sustainable technologies (50%), improved communication with the community and customers (30%), and the implementation of recycling programs (20%) stand out. These results reveal the complexity of negative externalities in appliance micro-enterprises, underscoring the need for comprehensive approaches that address financial, reputational, and environmental aspects to ensure sustainable and positive growth for the local community.