Heuristic availability and financial self efficacy on SME’s performance: investment decisions as mediation

Abstract

Small and medium are instruments that are able to improve community welfare. The aim of this research is to determine the relationship between heuristic availability, self-efficacy, investment decisions and SME’s performance. The theory used in this research is retrieval theory. This research was conducted quantitatively, with 100 small and medium respondents from Bengkulu. This research uses the SEM method in data analysis. Data collection was carried out by distributing questionnaires via form. The results of the research show a positive relationship between the availability of heuristics and financial efficacy partially influencing performance, then financial self-efficacy influencing investment decisions; financial self-efficacy influences SME's. Performance. Then, investment decisions are able to mediate the relationship between availability and SME’s. Performance and investment decisions are able to mediate the influence of financial efficacy on SME’s. Performance the implications of this research show that SME’s need to have a good strategy to be able to gain profits from an investment.