The position and importance of the behavioral finance to solve the financial problems of SMEs

Abstract

Purpose- The behavioral finance searches about how the decision-making mechanisms of financial directors in their mind structure are affected by the social, sensual and mental prejudgments. Since the small and medium-sized enterprises are mostly the family businesses in our country, professional approaches in the financial management of companies are not found. Methodology- Due to being one or more than one person takes care of the decision mechanisms and the decisions are being taken as a result of the knowledge, abilities, education and experiences of the people; it is observed that the financial management functions of the companies are not used productively. Findings- The biggest problems of small and medium-sized enterprises are in fields of finance. By this purpose, after being described the concepts in the study, the relations between these terms and literature are tried to be supported by the primary studies to achieve this purpose. The hypothesizes of the study are started to be improved by being generated the theoretic frame. Conclusion- The research was actualized by a questionnaire form about what the financial problems of the sme are and if these problems could be solved by the behavioral finance or not. The dimensions where the behavioral finance is sufficient for solving the financial problems were determined by the result of the analyses and seen that a significant relation between the financial challenges and the behavioral finance as directly proportional.