TITLE:
The Extent of Biases and Heuristics Affecting Rural Families’ Decisions to Run Small Businesses
AUTHORS:
Disha Varkala
KEYWORDS:
Small Business, Entrepreneurship, Business, Biases, Heuristics, Enterprise, Rural, Start-Up, Venture
JOURNAL NAME:
Open Journal of Social Sciences,
Vol.12 No.7,
July
12,
2024
ABSTRACT: Rural families living in impoverished conditions and developing nations who wish to start their own businesses are impacted by a multitude of cognitive shortcuts and heuristics. Three heuristics that are relevant to rural families starting businesses are the anchoring, representativeness and familiarity. Through utilizing literature reviews of majorly qualitative and quantitative data, this paper delves into how these biases impact business decision making in rural communities. Additionally, this paper also suggests a span of policies and suggested actions that are intended to assist these communities in making better decisions and stray away from the negative effects of these heuristics.