5 Cognitive Biases Every Entrepreneur Must Get Over With
Source | inc42.com | Pavan Soni
Humans are not as wise as the word ‘sapiens’ suggests. We commit mistakes, and alas, in a very predictable manner. The study of systematic biases and errors that creep into everyday human behaviour has helped scores of economists and psychologists bag Nobel Prizes and author several best-sellers for the popular audience.
The very domain of behavioural economics, and the sub-fields of behavioural finance, behavioural marketing et al., have become mainstay disciplines in B-Schools and corporate alike. That’s how much our understanding of ourselves has moved from the days of Adam Smith and the invisible hand. The entrepreneur is no immune to such biases. If anything, such beings are far more susceptible to fall for such biases owing to the very pursuit of success against all odds.
This piece is aimed at calling out five of the most destructive of the biases that typically cripple the founders and early employees of enterprises and derail the organizational progress. As a bonus, a set of approaches are offered on how to overcome such biases before they entirely disable your pursuit.