The impact of behavioral finance on investment decision making on small medium enterprises(smes) case study: mukono district
| dc.contributor.author | Sarah Rwiririza | |
| dc.date.accessioned | 2026-04-20T12:15:37Z | |
| dc.date.available | 2026-04-20T12:15:37Z | |
| dc.date.issued | 2026-04-14 | |
| dc.description | Undergraduate | |
| dc.description.abstract | This study examined the impact of behavioral finance on investment decision-making in Small and Medium Enterprises (SMEs) in Mukono District, Uganda. The study specifically aimed to investigate how specific behavioral biases, herd behavior, and behavioral finance principles influenced investment decisions and risk-taking among SME owners. The research adopted a descriptive and quantitative design, targeting 25 SME owners and managers within Mukono District, with a final sample size of 24 respondents determined using Slovin’s formula. The data collection techniques used in the study were structured questionnaires and descriptive statistics like frequencies, percentages, mean, and standard deviations among others. The results indicated that overconfidence, loss aversion, anchoring, and confirmation biases had significant impacts on the investment decision-making process. Specifically, they led to the use of judgmental techniques in decision making, avoidance of risky investments, and the use of past information. Herding behavior played a key role in terms of when and what type of investments should be made by the owners of small and medium-sized enterprises since they followed market trends and replicated other people's businesses. Principles of behavioral finance such as overconfidence, optimism and loss aversion also influenced the risk behaviors adopted by the SMEs owners whereby they opted for investments that would give profit and minimize any losses. Generally, it can be noted that the behavior biases and principles had considerable impacts on the investments and risk-taking practices. Therefore, the study recommends that the owners of SMEs develop better processes for evaluating investments and minimize dependency on market trends and herding behaviors. Financial education is also recommended to help reduce the effects of behavior biases. | |
| dc.identifier.uri | https://hdl.handle.net/20.500.12311/3236 | |
| dc.language.iso | en | |
| dc.publisher | Uganda Christian University | |
| dc.title | The impact of behavioral finance on investment decision making on small medium enterprises(smes) case study: mukono district | |
| dc.type | Dissertation |