Decision Making for Consumers and Small Business: A Behavioral Approach

Introduction. The article analyzes the differences between traditional finance and behavioral finance. The basic tools of micro-behavioral finance are highlighted, the influence of behavioral finance on ensuring the effective result of the activity of economic relations is determined. The necessity of further study of behavioral finance in modern financial science is substantiated. It describes how behavioral finance is intended to explain the behavior of economic relations in financial market decision-making, as well as how the behavioral approach is sufficiently manifested in predicting the effects of an entity's activities today. Purpose. The methodology of work is studied in the understanding of the concept of "behavior of people", as well as their representatives on the subjects of economic dependence. Results. In recent decades, a new science has emerged and is developing - behavioral finance, which is aimed at clarifying a number of anomalies that emerge in the financial markets. Behavioral finance casts doubt on the rational behavior of market participants and examines deviations in the decision-making system. Conclusion. Assessment of the prospects of enterprise development, taking into account changes in the economy and behavioral finance is the basis for the formation of forecast data and drawing up plans. As a rule, virtually all forecasting methods are based on changes that occur from one period to another, without taking into account the behavioral factor, which allows only to predict the financial results of the enterprise while maintaining existing trends in the market environment, without taking into account possible qualitative changes and may lead to inefficient economic activity, and thus to a decrease in profit.

Download Full-text

Cost-Volume-Profit Analysis as a Management Tool for Decision Making In Small Business Enterprise within Bayero University, Kano

IOSR Journal of Business and Management ◽

10.9790/487x-1902014045 ◽

2017 ◽

Vol 19 (02) ◽

pp. 40-45 ◽

Cited By ~ 1

Author(s):

Sadiq Rabiu Abdullahi ◽

Bello Abiodun Sulaimon ◽

Ibrahim Salihu Mukhtar ◽

Muhammed Hardy Musa

Keyword(s):

Decision Making ◽

Small Business ◽

Management Tool ◽

Business Enterprise ◽

Profit Analysis

Download Full-text

Decision-Making Framework For Small Business With Limited Available Capital

10.32920/ryerson.14655459 ◽

2021 ◽

Author(s):

Milad Around

Keyword(s):

Decision Making ◽

Small Business ◽

Small Businesses ◽

General Level ◽

Working Capital ◽

Financial Assessment ◽

Current State ◽

Business Entities ◽

A Current

In the world of business special attention is paid to entrepreneurs for their potential and large corporations for their impact on the market. Due to this, small businesses often fall short of resources and tools to help them grow. The aim of this dissertation is to introduce a framework for decision making to small businesses as a tool to help embed more structure into their organization. The framework was then applied to two distinct case studies to display its functionality and usefulness. The framework consists of several steps: 1) corporate plan and financial assessment 2) a current state analysis 3) a quantitative and mathematical feasibility study of the decision The framework in each case study resulted in an objective and qualified decision. It also suggests that, due to the unique structure and characteristics of each small business, the framework proposed would only be relevant and applicable on a general level and more work is required to refine the details in order to be able apply it universally to business entities with limited working capital.

Download Full-text

Information Systems

Advances in Business Information Systems and Analytics - Strategic Utilization of Information Systems in Small Business ◽

10.4018/978-1-4666-8708-0.ch003 ◽

2015 ◽

pp. 78-108

Keyword(s):

Decision Making ◽

Information System ◽

Information Systems ◽

Small Business ◽

Business Manager ◽

Business Decision ◽

External Organization ◽

Support Decision Making

An information system translates data into information to support business decision making. Data, raw unorganized facts, are gathered relative to a business event. The resulting information, which has meaning in the hands of a user, must be complete and accurate in order to support timely decision making. The acquisition of an information system by a small business will be a relatively costly endeavour. The small business manager will tend to rely upon an internal individual or external organization for advice when acquiring an information system. Further, the information system will be employed to improve the efficiency of daily operations of a small business. This chapter describes information systems. In general, an information system turns data into information to support decision making. The information must be timely, complete, and accurate relative to the decisions which must be made.

Download Full-text

Small Business

Advances in Business Information Systems and Analytics - Strategic Utilization of Information Systems in Small Business ◽

10.4018/978-1-4666-8708-0.ch001 ◽

2015 ◽

pp. 1-40 ◽

Cited By ~ 1

Keyword(s):

Decision Making ◽

Small Business ◽

Small Businesses ◽

Resource Limitations ◽

Management Issues

Small businesses are quite unique in many ways. They make a major contribution to employment specifically and the economy in general. Decision making at all levels is affected by resource limitations. Many of the aspects of failure or success of the small business relate to management issues. When a small business is formed it may grow quickly. If they do not fail the growth may lessen. While this growth may be regarded as a success, longevity and the consequent multi-generation existence may also be a consideration for an interpretation of success. This chapter covers the gamut of small business perspectives.

Download Full-text

Evaluation of microcomputer utilization in small- and medium-sized businesses

South African Journal of Business Management ◽

10.4102/sajbm.v21i1.912 ◽

1990 ◽

Vol 21 (1/2) ◽

pp. 27-31

Author(s):

J. J.D. Havenga ◽

P. J.S. Bruwer

Keyword(s):

South Africa ◽

Decision Making ◽

Small Business ◽

Empirical Study ◽

Southern Africa ◽

Computer Literacy ◽

Computer Application ◽

Strong Tendency ◽

Developing Region

This paper presents the result of an empirical study on the use of microcomputers by small and medium-sized businesses in South Africa. A number of countries were included in the survey. The purpose of this study was to establish, through the use of 51 variables in the project, what major problems small and medium-sized businesses experience in the use of microcomputers in a developing region such as southern Africa. Special emphasis was placed on the main reasons for purchasing microcomputers, types of software used, as well as training and experience in handling this equipment in the management of a small business. Major findings included a greater computer literacy amongst users, with a strong tendency towards computer application for more sophisticated purposes such as decision making means of support.

Download Full-text

Adopting the Entrepreneurial Process in the Study of Information Systems and Small Business

Managing IT in Government, Business & Communities ◽

10.4018/978-1-93177-740-7.ch001 ◽

2003 ◽

pp. 1-14

Author(s):

M. Gordon Hunter ◽

Wayne A. Long

Keyword(s):

Decision Making ◽

Information Systems ◽

Small Business ◽

Small Businesses ◽

Strategic Orientation ◽

Business Managers ◽

Entrepreneurial Process

This document suggests the adoption of the Theory of Entrepreneurship by researchers who investigate the use of information systems by small businesses. The majority of existing research into this area tends to adopt results determined from investigations of larger businesses. Thus, the uniqueness of small business is not considered. Concepts such as strategic orientation, decision-making, and resource poverty contribute to the unique situation and approach taken by small business managers. The Theory of Entrepreneurship responds to these concepts. The framework suggests that organizations evolve and that entrepreneurs throughout this evolution face various challenges. The components of the Theory of Entrepreneurship are described here, in concert with the challenge to researchers to consider adopting this framework when conducting investigations into how information systems may be employed to support small business.

Download Full-text