THE INFLUENCE OF BEHAVIOURAL BIAS AMONG SMALL AND MEDIUM SCALE ENTERPRISE IN THE KUMASI METROPOLIS

Abstract

The main purpose of this study is to determine the influence of behavioural bias among SMEs in the Kumasi Metropolis. In this study, three behavioural biases (belief bias, “snakebite” effect and overconfidence bias) and their effect on SME owner decision making. The study uses a questionnaire to collect primary data. A sample size of 120 respondent used and SPSS version 21 used for data analysis. The results from the regression analysis show that the impact of the behavioural bias on SME owner decision making is significant at 0.01 significant level. The findings provided could be useful to SME owner in their decision making to understand the dynamics in businesses.