chapter  8
12 Pages

Satisficers

ByScott Holmes, Michael T. Schaper

This chapter looks at the Satisficers. The Satisficers represent just one-quarter of all businesses in the economy. They have a broad industry profile and almost half of them have been in operation for ten years or more. Satisfaction is a process of accepting a reasonably satisfactory outcome to a problem or situation, rather than the most desirable or perfect solution. A lack of information is one of the critical determinants of satisficing. Economists point out, making the most efficient and effective business choice assumes that an entrepreneur is in full possession of all the current facts, and has perfect knowledge of the consequences of each alternative course of action. Significant risky decisions can often threaten the survival of a small business, even if the possible benefits are great. The ability to make logical decisions, and those that are the most advantageous to the business, is in fact deeply constrained by the limits of time, effort, information accessibility, resources and risk.