The Effects of Behavioral Factors on the Creditworthiness of Small-Scale Enterprises

Abstract

This chapter uses the relationship between behavioral factors and the creditworthiness of small-scale enterprises to increase access of SMEs to credit facilities. The inability of several small businesses to secure loans cannot be overemphasized. Heuristics affecting entrepreneurs are explained in this chapter, and a regression model showing the dependence of creditworthiness on behavioral factors is proposed. If banks consider using psychometric tools in testing for creditworthiness of small-scale entrepreneurs, access to credit facilities will be significantly increased and businesses will flourish. Regressesion models such as the one explained in this chapter may be imbedded in psychometric tools to enhance creditworthiness testing and improve the quality of loans that banks give.

Can Bitcoin Be a Safe Haven in Fear Sentiment?

“…Zouaoui et al (2011) evidence that the financial market involving fewer institutional investors participation are more sensitive to sentiment swings. Compared with mainstream asset classes, the Bitcoin market is still in its infancy, with lower liquidity, higher transaction costs, and lower participation by institutional investors (Kharpal, 2017;Shevchenko & Godwin, 2018). That means that Bitcoin will exhibit greater sensitivity to sentiment than mature assets (such as gold, stock market, etc.).…”