Meaning ● Cognitive Entrenchment, within the SMB context, signifies the deep-seated resistance to adopting new strategies, technologies like automation, or operational methodologies due to reliance on established, albeit possibly outdated, cognitive frameworks. This is observed where established mindsets limit the ability to see and act on better alternatives impacting growth negatively, especially regarding implementation of improvements. ● For instance, a small manufacturing firm might resist automating production processes despite clear efficiency gains, because the management team’s experience is rooted in traditional manual labor and does not understand the benefits of technology and implementation difficulties, thereby inhibiting growth. The challenge is to recognize these limiting beliefs that impede strategic agility. It impacts the capacity to adapt to market changes or capitalize on innovation and new processes within their market.
