Entrepreneurship' sustainability of the popular and solidarity economy in Ecuador

The popular and solidarity economy (PSE) plays a vital role in the economic and social development of Ecuador, fostering inclusion, employment, and the sustainability of local economies. This study aims to develop an index that assesses the sustainability levels of PSE organizations in Ecuador by evaluating several factors, including organizational processes, productivity, innovation, income generation, democracy, cooperation, and environmental practices. Using data from the Unique Registry of PSE Organizations in Ecuador, we employ Variational Autoencoders (VAE) network for modeling, combined with a Bayesian optimization process and K-means clustering to categorize sustainability levels by province. Findings indicate a high level of sustainability in Santa Elena, Pastaza, and Guayas, although challenges remain in terms of innovation and environmental practices. This research provides a framework for policy interventions designed to enhance sustainable growth within the PSE sector in Ecuador.