The Covid-19 pandemic has generated alert and dynamic changes in industries and companies worldwide, and in response to the adaptation process, new ways with technological innovation have achieved resilience, and new sectors have emerged without precedent, mainly in some Ecuadorian sectors to promote economic reactivation, increasing the demand for new services. The objective of the research is to assess the impact of the Covid-19 global pandemic on the sector of Professional, Technical and Administrative activities in Ecuador for the year 2020. The research is descriptive, explanatory, and bibliographic, with a mixed methodology and a non-experimental cross-sectional investigation, adapting a non-probabilistic sampling, analytical method, and statistical analysis of data series. Among the most relevant results is that the global Covid-19 pandemic produced growth in the sector mentioned before.
Based on Figure 1, it is established that on September 2020, the most afected regions in the world were Latin America, the United States, and Europe, causing health damage per million inhabitants, and this responds to the fact that the more rapid tests are carried out, the number of detected cases tend to be greater, which serves as a basis for making decisions regarding confinement, citizen biosecurity, and others. Note that in the case of Ecuador, after the scourge of March, the number of infections has improved, although there are provinces with a rebound.
On the other hand, companies are an important part of economic activity and job creation,
for the development and economic growth of a country [
In fact, SMEs are companies capable of adapting to changes due to technology and have the
ability to generate employment, promote economic development, and comply with the income
distribution policy, improving and driving the economy in times of crisis [
Pandemics are recurring events. Countries have their borders closed, limiting society to
confinement and stopping commercial activities, in fact, there are sectors that have increased
unemployment such as tourism [
In this sense, the global Covid-19 pandemic has raised an alert in the business area, forced
to apply some type of plan in strategic management and corporate social responsibility for its
continuity. Diaz Casero et al. [
Romero Luna [
In Ecuador, the economic impact is caused by a shock in demand, by the reduction of exports,
mainly of primary products to the United States, China, and the European Union, and on the
supply side, by the suspension of production activity and trade [
The Cash Bufer is an index that allows companies to know the days that can be resisted
without liquidity and is calculated by dividing the average monthly cash balance by the average
monthly outflow. It allows finding out how many days can the companies stop producing
without having incomes so that they can continue operating with the available cash balance [
According to Superintendencia de Compañías, Valores y Seguros, Banco Central del Ecuador,
and Instituto Nacional de Estadísticas y Censos, in 2018 the total number of formal companies
reached 27,764, emphasizing the Service sector with 11,832 formal firms, belonging to 43%
of market share. Their incomes and profits represent 13.9% and 1.3% of GDP respectively,
generating 3.8% of total employment [
The results of the study mentioned before indicated that SMEs have higher cash levels than
large ones in most sectors, and through the Cash Bufer they showed that 50% operate with a
median of 33 days. It means that they manage and resist without liquidity for more than one
month, while the most vulnerable sectors to suspend their activities are manufacturing (32
days), services (31 days), electricity, and water (29 days). Additionally, companies that have an
international commercial activity or access to credit have a higher level of resistance without
cash [
The problem of the investigation is the afectation of professional, technical, and administrative activities of Ecuador, as a result of the efects of the global Covid-19 pandemic. That is why the objective of this research is to assess its impact on this sector for the year 2020. The importance of this research is based on the post-Covid-19 global pandemic economic reactivation, as a process of adaptation to new business reality, through the service sector in professional, technical, and administrative activities, demanded by Ecuadorian companies and businesses. It is relevant to complement the analysis with a quarterly variation of GDP, where according to estimates by the Ministry of Economy, Mauricio Pozo indicates that "at the end of 2020, the GDP will register a year-over-year decrease of 8.9%, it is a severe rate, but it is less bad -if we compare with the hardest moment of the pandemic"
Bonaglia et al. [
Pandemics usually occur at intervals of 10 to 50 years, due to new types of viruses. Society
has already been afected by several ones in the past. It is dificult to estimate the economic
consequences, and long-term social behavior, where investment is disinterested and saving
capital is more important [
The Covid-19 pandemic had repercussions on the economic impact of Latin America and
the Caribbean, where governments implemented public policies and plans for its immediate
reactivation [
In this sense, businesses and companies modified their processes, using innovation and
technology tools, for the commercialization and demand of new products and services. Lana [
However, Diaz Casero et al. [
The institutional theory produces employment generation, innovation, growth, and economic
development. Companies change their institutional structure to meet their objectives, and
adjustments are focused on the long-term as a result of decisions of businessmen, politicians,
and economists, who work on improvement in the short term [
Diaz Casero et al. [
In Ecuador, measures were taken to guarantee the permanent operation of the productive sector, such as: Food and medicines supplies, restrictive norms for vehicular movement and curfew, a family protection bonus for the poor population for the months of April and May, labor and tax management adjustment, financing and liquidity through Public Banking, National Finance Corporation and direct credit to support SMEs, and international financing.
Strategic management is a tool that guides the manager with a clear vision of the business
for the performance of activities and achievement of objectives [
To formulate the organizational strategy, it is important to develop a SWOT analysis (Strengths,
Weaknesses, Opportunities, and Threats), and examine critical points and growth matrix [
Systemic violence in capitalism is inherent to the system, because it imposes relations of
domination and exploitation, as a result of the economic and political order [
Araque et al. [
The organizational strategies by sectors must be aligned in favor of the construction of a
cultural identity subject to the rules of hegemony, but with new guidelines for the post-covid
economic reactivation, where power relations and the rights of entrepreneurs and professionals
can be coordinated. The leaders of organizations must redesign the supply chain, rely on
technology and the internet, in order that they can get sustainable supplies, and despite the
alteration in the industries due to the crisis, adaptability to changes with innovation techniques
is considered a useful key to overcoming barriers [
Romero [
The research is exploratory-descriptive, with a quantitative investigation approach, which uses the analytical-synthetic method, supported by data series. Documentary and bibliographic reviews were used as research techniques.
It is important to analyze the indicators of the independent variable (Deaths registered in the Civil Registry, and deaths during the pandemic). The first indicator shows that until September 27th, 2020, the curve had already flattened, but the interesting fact is the dispersion of the average, where 35,227 excess deaths were recorded since March. On the other hand, Ecuador registered 141,339 cases, of which 11,869 died from COVID on October 5th of the same year.
Comparing the number of deaths from the 2018-2019 period (Second Indicator), there was a diference of 35,227 deaths, which shows the social and economic impact that the pandemic brought because among those deaths were heads of households, informal merchants, professional women, who cease to be part of the economically active population, and whose homes are destroyed due to lack of parents or psychological efects on family members.
The first variable indicator indicates that between 2009 and 2019, this sector contributes approximately 6.20% to the total of the Ecuadorian economy, and measured through the annual variation rate, in some cases, it exceeds the growth rate of the Gross Domestic Product. However, in the years of the crisis between 2015 and 2016 due to the strengthening of the dollar, the fall in the price of a barrel of oil, and the earthquake, caused a negative efect on the economy, and logically the demand for services such as these was influenced by those external factors.
After the recovery of the economic cycle, the sector raised in 2018 and 2019 by 3.2% and 2.9% respectively. If we consider that this reactivation goes hand in hand with the start-up of new businesses and the increase of sales in sectors, such as commerce and construction, the outlook becomes encouraging. The data is presented below in Table 1. All must be subjected to denser scrutiny, and that is why the Value Added by industries is used to know how much it contributes to the Gross Domestic Product, but on an interannual or quarterly basis, for which the data is taken from 2016. In that year, the sector only recovered for the last two quarters.
In 2017, except for the second semester, it registered positive contributions. This explains the dynamics of the economic cycle and how once macroeconomics starts to emerge, the efect on the micro is gradual.
In 2018, it is evidenced as the most positive quarter, even the best year, registering 3.3% growth and positive numbers in 3 of 4 quarters; but for the year 2019 the impact of the country’s recovery for this sector has just been measured, but unfortunately with a pandemic, according to the statistical data, the first quarter of 2020 starts with contraction.
In 2017, except for the second semester, it registered positive contributions. This explains the dynamics of the economic cycle and how once macroeconomics starts to emerge, the efect on the micro is gradual.
In 2018, it is evidenced as the most positive quarter, even the best year, registering 3.3%
GDP 54557,7 56481,1 60925,1 64362,4 67546,1 70105,4 70174,7 69314,1 70955,7 71870,5 71909,1
Annual variation rate, percentage
Percentage of contribution sector/GDP 0,6 3,5 7,9 5,6 4,9 3,8 0,1 -1,2 2,4 1,3 0,1 6,16% 6,18% 6,18% 6,25% 6,30% 6,34% 6,25% 6,20% 6,12% 6,24% 6,42% growth and positive numbers in 3 of 4 quarters; but for the year 2019 the impact of the country’s recovery for this sector has just been measured, but unfortunately with a pandemic, according to the statistical data, the first quarter of 2020 starts with contraction.
Going deeper into the analysis of the Professional, Technical, and Administrative Activities sector for 2019, between January and August architecture activity, represented 24.92%, belowconsulting services at 37.65%, and finally in third place legal and accounting at 15.60%. For 2020, despite the pandemic, the results were 23.82%; 34.08%, and 17.03% respectively. Other scientific and technical activities represented 12.73% and advertising and market research 10.94%. In total, these activities supported the sector and are explained as follows:
People adapted to present and future constructions with biosafety standards, so they contact architects and consultancies to find strategies to face the crisis. There were legal issues for the liquidation of companies, and layofs, and this relates to accounting. On the other hand, professional activities associated with craftsmanship, new products, innovations, and investment in advertising and marketing complete the reason why, despite the pandemic, the sector was not harmed, but rather was enhanced.
As a result of the Covid 19 global pandemic, many sectors of the Ecuadorian economy continued working constantly, such as the Agricultural sector, but some drastically decreased, as the Hotel sector, and others took on value, being the Professional, Technical, and Administrative Activities Sector of Ecuador an example, that responded to the urgent business needs to continue operating, with an administrative plan that encourages the reactivation of the economy
Technology and platforms with innovation allow the redesign of business strategies, within the strategic administration for globalization and economic reactivation after the global Covid-19 pandemic. The business sector demands the services of the professional, technical and administrative activities of Ecuador to improve decisions, identify problems and failures, redesign its strategies and implementations, and the fulfillment of objectives in times of the global Covid-19 pandemic.
The critical balance of the impacts of the Covid-19 global pandemic, in the sector of Professional, Technical and Administrative Activities of Ecuador for the year 2020 determines that this sector benefited greatly from the urgency of architects, lawyers, consultants, publicists, and accountants, among others.
Araque et al. [
The factor and financial support are keys between multilateral, public, and private banks
and international organizations for the promotion of economic reactivation worldwide [
We thank the ECOTEC University for giving us their support in research in such a dificult time as COVID when we stated that not all sectors should have been afected, as well as local newspapers and government agencies, such as Banco Central del Ecuador and Servicio de Rentas Internas for transparency in the handling of information and the availability of data. Finally, to the diferent authors cited, since their studies allowed us to have a holistic view of the subject matter.