Reopening and economic recovery of small and medium-sized businesses post-earthquake 2016: the case of Portoviejo, Manabí, Ecuador

In Ecuador, commerce was severely affected by the 2016 earthquake. The commercial area of Portoviejo was declared as ground zero. This study aims to determine the level of recovery of small- and medium-sized businesses that had access to financing sources and analyse predictors of post-earthquake reopening. A survey was administered to 314 traders; further, an ordered multinomial logit model was estimated, and non-parametric Wilcoxon test and descriptive statistics were applied. The results indicated that financing with own funds, equity in English, and other factors predict the economic reactivation of businesses. In conclusion, the bank loans granted were not a determinant in the recovery of the businesses in Portoviejo.