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Forms of informal financing of informal traders in Colombia Cases: Cúcuta, Ibagué and Villavicencio.


  • Gustavo Adolfo Díaz Valencia


Informal economy, informal credit, informal traders, Colombia, cross-sectional econometric model


This article aims to analyze the incidence of informal financing on the economic benefits of informal merchants, located in the cities of Cúcuta, Villavicencio and Ibagué in 2017, for this purpose 490 surveys were randomly applied to informal vendors in the three cities, where it was found that many people resort to this type of credit, only to finance working capital activities and not to expand the size of their businesses, assuming high interest rates and daily payments; In addition, it was shown that this form of financing did not have a positive impact on merchants' profits.

To verify the objective of the research, a cross-sectional econometric model was carried out, only the informal vendors from the cities mentioned in the previous paragraph who had some form of financing were selected. The dependent variable is net profit and informal loans and financing of the banking system were taken as independent variables, among others.