PurposeIn order to better understand how heuristics are used in practice, the authors explore what type of heuristics is used in the managerial domain of financial advisors to small and medium-sized enterprises (SMEs) and what influences the shaping of these heuristics. In doing so, the authors detect possible fast-and-frugal heuristics in day-to-day decision-making of independent financial advisers who help owners of SMEs to acquire capital (e.g. loans, factoring, leasing and equity).Design/methodology/approachThe authors inductively assessed the work of financial advisers of SMEs. Based on group discussions, the authors drew up a semi-structured interview-protocol with descriptive questions about how financial advisers come to a deal for their clients. The interviews of 19 professionals were analysed by relating them to the theory of fast-and-frugal heuristics.FindingsWithin their decision-making, advisers estimate the likelihood of acceptance by a few financial providers they know well in their personal network with a strong bias towards traditional banking products, although there are a large number of alternatives on the Dutch market. “Less is more” seems to be a relevant principle when defined as satisficing. Heuristics help advisers to deal with behavioural and economic limitations. Also, the authors have found that client interaction, previous working experience and the company the adviser is working for influences the shaping of the simple rules the adviser is using.Research limitations/implicationsThe study shows how difficult it is to understand the ecological rationality of a certain group of professionals and to understand the “less is more” principle. Financial advisers to SMEs use cognitive shortcuts and simple rules to advise SME-owners, based on previous experiences, but it is difficult to determine whether that leads to the same or even better solutions for them and their clients than using probability theory and financial optimisation models. Within heuristics, satisficing seems to be a dominant mechanism. Here, heuristics help advisers in recognising possibilities by searching for similarities between a current financing case and previous experiences. The data suggests that if “less is more” is defined as satisficing for one or more stakeholders involved, the principle dominates the decision making of financial advisers of SME's.Practical implicationsThe authors suggest the relevance of a behavioural approach to finance by assessing the day-to-day decisions of financial advisers of SMEs. Also, the authors suggest that financial advisers are guided by previous experiences, and they do not fully assess a wide range of options in their work but need shortcuts to fulfil the needs of their clients.Originality/valueThe study comes close to day-to-day decision-making in finance by assessing how professionals make decisions. The authors try to understand types of heuristics in relation with “ecological rationality” and the less is more principle. The authors assess financial advisers of SME-companies, a group that has gotten little research attention until now. The influence of client interaction and of the company the adviser is working for is remarkable in the shaping of the advisers' simple rules.
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Amateur Cities and the Institute of Network Cultures are proud to present a feminist finance zine titled ‘Radical Care: Embracing Feminist Finance’. It is a cooperative future-thinking effort from the MoneyLab network, a collective of artists, designers, researchers, geeks and activists dedicated to the task of experimenting with more equitable, diverse, and sustainable futures for finance and economy.The zine is a diverse collection of voices organized in three types of contributions: quickfire interviews (short reactions to big questions), double interviews (conversational long reads), and artworks (projects addressing discussed subjects visually).Today we live in a world that is dominated by an economic system that is global, competitive, and centred around a rational and egoistic vision of the human (homo economicus). In this publication we asked ourselves and over twenty contributors how we can embrace different values focusing on locality, cooperation, and caring. Can an affective and compassionate vision of the human get us closer to homo reciprocans or cooperans? How can we break out of the crisis of imagination, and as Lana Swartz and Martin Zeilinger propose, move towards the crisis of implementation? How we can navigate the relations of exchange and trust between humans and machines, but also, our relationship with the environment. Can we finally not only recognize the climate catastrophe, but also find ways to act against it, through an economic lens, mindful of not reproducing patriarchal and colonial histories? As Denise Thwaites notes, this work starts with careful and respectful listening to voices that have long been silenced. In the words of Ruth Catlow and Reijer Hendrikse: history is not over, we are just beginning!We hope this zine will inspire you and those around you to think about alternative ways in which we could organize our economies. We highly encourage you to share it and let it reach new places. For that reason we attached a travel record card as a cover. Please keep it in motion and get in touch!
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Amateur Cities and Institute of Network Cultures are proud to present Feminist Finance Syllabus, a supplement to the Feminist Finance Zine titled Radical Care: Embracing Feminist Finance. It is a result of the Twitter conversations that took place during three launch events of the zine between April and May 2020.This syllabus is a starting point for diving into the field of feminist finance. It features scholarly concepts, grassroots projects, artistic thought-experiments, fictional responses, and questions without answers. The events from which we sourced the references and quotes featured in our syllabus are just snapshots of bigger discussions and are in no way exhaustive. Our discussions were influenced by the events of early 2020, the experience of living through the COVID-19 pandemic, and its socio-economic consequences. This perspective framed already existing feminist debates in a different way, adding new urgencies to particular struggles. We saw important lines of thought emerge in the discussion, and structured them into six topics: fundamental critiques, radical care, interdependence, units of account, alternative money design, forms of organizing.We would love to keep the conversation on feminist finance alive and this syllabus is an invitation to continue it. Download your digital copy of the Feminist Finance Syllabus here and follow the links in the syllabus to participate.
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