Abstract
This study aims to develop and validate a behavioral bias scale tailored for financial decision-makers in small and medium-sized enterprises (SMEs). The research identifies nine key biases—anchoring, loss aversion, self-control, regret avoidance, endowment effect, status quo bias, conservatism, familiarity bias, and confirmation bias—and examines their role in investment decision-making. A mixed-method approach was employed, beginning with a literature review and qualitative interviews with SME managers to refine scale items. The final scale, consisting of 34 items, was tested through exploratory factor analyses using data from 334 participants. The results confirmed the scale’s reliability and initial validity, demonstrating strong internal consistency through exploratory factor analysis (EFA). The validated scale serves as a foundation for further research and practical applications aimed at mitigating biases in financial decision-making.