Meaning ● Cognitive biases represent systematic deviations from normative judgment and decision-making processes, particularly relevant as SMBs navigate growth phases and adopt automation technologies. These biases, inherent in human cognition, can significantly skew strategic choices related to technology implementation, market expansion, and resource allocation within the unique constraints and opportunities facing small to medium-sized enterprises. ● Scope ● Understanding the impact of biases such as confirmation bias (favoring information confirming pre-existing beliefs about automation ROI) or the sunk cost fallacy (continuing investment in failing automation projects due to prior investment) is crucial for SMB leaders. Mitigating these biases involves structured decision-making frameworks, diverse team input during automation planning, and objective performance measurement of implemented technologies to prevent misallocation of limited resources and maximize growth potential. Properly identifying these limitations will allow for correct implementation of best practices in SMBs, which will bring expected growth. These are not just psychological quirks; they are active forces shaping business trajectories.
