Skip to main content

Professor to Study Impact of Scarcity on Financial Decisions

Financial Planning

In modern economies, the birth and growth of young firms play a large role in job creation and economic welfare. The cost of failure is significant not only to owners and their families but also to employees, suppliers, financial institutions and the Canadian economy as a whole. Understanding entrepreneurs’ decision-making mechanisms and cultivating sound practices are thus crucial. 

Telfer professor Miwako Nitani has received a Social Sciences and Humanities Research Council of Canada Insight Grant for a project titled “Scarcity and Financial Decisions: Necessity and Opportunity Entrepreneurs.” 

What is this research project about?

Miwako NitaniFor Nitani, historical approaches to financial decision-making have focussed on the provision of knowledge and cognitive biases. However, recent theoretical literature suggests that individuals’ cognitive capability and executive control in using knowledge they have acquired and making appropriate decisions could be significantly impeded when facing scarcity (defined as “feelings of having less than they need”).

Nitani will examine the link between scarcity and decision-making. She’ll also compare the impact of scarcity on two minority groups among the self-employed, necessity and opportunity entrepreneurs, which differs significantly between the two.

Research Impact

Nitani is among the first to examine the impact of scarcity on entrepreneurial activities. She hopes to enrich public discourse, improve public policy and inform remediation by agencies such as the Business Development Bank of Canada, the Financial Consumer Agency of Canada and other business advisory services.

About the Author

Zoï Coucopoulos a occupé le poste de coordonnatrice des initiatives stratégiques, où elle soutenait la croissance de la qualité et de l'intensité de la recherche de l’École de gestion Telfer en aidant les chercheurs et les groupes de recherche à élaborer des programmes de recherche interdisciplinaires et des activités de sensibilisation. De plus, elle travaillait à faciliter le développement de groupes de recherche stratégiques et à aider les membres du corps professoral et les étudiantes et étudiants diplômés à contribuer au développement d'une culture solide basée sur la recherche.</br></br>Zoï Coucopoulos previously held the position of Coordinator of Strategic Initiatives, where she supported the growth of the Telfer School of Management’s research quality and intensity by assisting researchers and research groups in developing interdisciplinary research programs and outreach activities. She also facilitated the development of strategic research groups and helped faculty members and research-based graduate students contribute to the development of a strong research culture.