Searching Entrepreneurial Information, Purposively
Transforming any idea into a successful venture, from a social entrepreneurial perspective, requires a prudent and creative mindset to grow and adapt to an evolving landscape. This process involves analysis of the evolving business models where entrepreneurs search for information on how to increase societal awareness of social and environmental issues while creating a sustainable revenue stream. The concept of ‘bounded rationality,’ introduced by Herbert Simon (Simon, 1957), means that entrepreneurs, faced with complex situations and limited information, make decisions using a simplified model of reality rather than seeking perfect solutions. Thus, the importance of information search practices among entrepreneurs should be considered through the perspective of bounded rationality.
In entrepreneurship research, entrepreneurs with a high level of entrepreneurial orientation use the information they collected to enhance the firm’s performance (Rodrigues and Raposo, 2011; Keh et al., 2007). The manner in which they conceptualize problems and identify what information to search and collect for decision-making may reflect relevant experience that they bring to the situation (Cooper et al., 1995). These actions of collecting information may be viewed as instances of decision-making under limited capacity or bounded rationality. In such cases, theories in human behavior claim that the capacity of the human mind to formulate and solve complex problems is viewed as relatively limited (Gruszka and Nęcka, 2017). On the same principle, there is no assumption that all information collected by entrepreneurs is relevant for arriving at a decision that would result in an optimal outcome. By acknowledging the limitations in human decision-making, entrepreneurs made satisfying decisions, not necessarily the best ones, but could develop solutions that they could apply to different situations (Horide, 2003).
Simplify the Mind
Looking forward beyond the depth of bounded rationality, the paradox arises because this limitation is often necessary to simplify knowledge structures and cognitive heuristics to lessen complexity (Cooper et al., 1995). The process of simplifying decisions can lead to choices that are suboptimal from purely rational and outcome-focused perspectives, even though the process itself is a rational adaptation to constraints (Müller, 2001).
Simplifying complex problems within the context of bounded rationality encompasses the search for information using ‘heuristics,’ which refers to mental shortcuts or rules of thumb used to make decision-making faster and more efficient, and ‘satisficing,’ which means choosing solutions that are ‘good enough’ rather than optimal. In real-world situations, searching all information to arrive at a perfectly rational decision is often impractical due to the limitations of human information-processing capabilities (Rubinstein, 1998). This recognizes that the human mind has finite limitations on cognitive resources to fully process large volumes of information. In light of this, simplification of information searching is necessary and effective if searching is carried out in a systematic way to identify the most relevant and reliable information. Key strategies and principles in information simplification include:
- Reducing cognitive load. It involves the process of breaking down complex problems into smaller or manageable pieces, eliminating unnecessary information, and focusing on one goal at a time sequentially to avoid context switching.
- Utilizing heuristics. Mental shortcuts, also known as rules of thumb, include past experiences, established habits that can be utilized to reduce the amount of information that needs to be processed, leading to faster decision-making (Moran, 2020).
- Embracing the concept of satisficing. Instead of optimizing, adopt a practical approach to decision-making that prioritizes efficient, “good enough” solutions to save time and mental energy. Adopting this framework in a pragmatic mindset entails setting clear and realistic criteria, prioritizing action over perfection, and focusing on the process (ModelThinkers, 2025).
- Managing information overload. Among the effective strategies for coping with information overload are filtering (systematic weeding out of irrelevant information), withdrawal (limiting information sources), prioritization (focusing on core concepts and principles), and information intermediaries (using automated systems to filter and route information) (Savolainen, 2007; Letsholo and Pretorius, 2016).
Purify the Intention
Building a culture of integrity behind the search process and use of the information gathered entails an intention to search for relevant and reliable information to arrive at balanced decision-making. Ethical use of information, in this context, would imply pure intention to use the knowledge gained for a higher purpose. In essence, searching for information is a process driven by a pure intention and commitment to truth and positive outcomes for a common good.
Move Beyond What We Already Searched
Realizing the truth that humans are not perfect decision makers, it is essential to understand our systematic biases in searching for information that affects the decision-making process. Learning to see our biases is a psychological exercise. It demands self-knowledge and the crucial need to recognize our capacity to search and process information, as well as the social implications of our decisions.
Looking through the eyes of humility, we must never presume that we search “all” or accurately, but must always be ready to search anew.
References
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Gruszka, A. and Nęcka, E. (2017). Limitations of working memory capacity: The cognitive and social consequences. European Management Journal, Volume 35, Issue 6, Pages 776-784.
Horide, I. (2003).Emotion and Bounded Rationality in Entrepreneurial Decision Making: An Interdisciplinary Approach. Reitaku International Journal of Economic Studies, Vol. 11, No. 1.
Keh, H. T.; Nguyen, T.M.; Ng, H.P. (2007). The effects of entrepreneurial orientation and marketing information on the performance of SMEs. Journal of Business Venturing. Volume 22, Issue 4, Pages 592-611.
Letsholo, RG & Pretorius, Marius. (2016). Investigating managerial practices for data and information overload in decision-making. Journal of Contemporary Management. 13. 767-792.
ModelThinkers (2025). Satisficing.
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Rodrigues, R.G. and Raposo, M. (2011), Entrepreneurial Orientation, Human Resources Information Management, and Firm Performance in SMEs. Can J Adm Sci, 28: 143-153.
Rubinstein,A.(1998).Modeling Bounded Rationality.United Kingdom:MIT Press.
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