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Information Sciences Letters

Information Sciences Letters

Abstract

In this study, we investigate the role of behavioral economics in assisting small and medium enterprise (SME) owners in overcoming the challenges posed by the COVID-19 pandemic. By understanding the psychological factors that influence decision-making, behavioral economics provides insights into biases and heuristics that can cloud judgment during times of uncertainty and stress. This understanding helps SME owners make more rational choices and offers practical strategies to promote positive behaviors and mitigate the negative impact of the pandemic. Clear and timely communication is essential, enabling SME owners to access vital information about government support programs, safety protocols, and financial assistance. Behavioral economics also addresses the psychological barriers that hinder compliance with health and safety measures, leading to the development of effective interventions that appeal to social norms, use positive framing, and provide incentives. The importance of social support networks and community engagement is emphasized, as they provide emotional support, shared knowledge, and learning opportunities for SME owners. Overall, behavioral economics offers valuable insights and strategies for SME owners to navigate the challenges of the pandemic and develop resilience.

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