Growth means change, but are entrepreneurs always willing to embrace these changes? They often cling to the current situation, even when it is not optimal. Take, for example, a collaboration partner who consistently fails to honor his agreements; finding a new partner seems too much of a hassle. This article is about this "status quo bias," a fallacy that can cost entrepreneurs a lot of money unnoticed.
What is the status quo bias?
The status quo bias describes our preference to leave indian whatsapp number things as they are, resulting in resistance to change (Samuelson & Zeckhauser, 1988).
'Status quo' represents the current state of affairs. By preferring to keep things as they are, you miss opportunities that could help you move forward. Important choices are not made based on rational arguments, but on what the status quo is.
How does status quo bias arise?
According to psychologists, there are two reasons why status quo bias arises.
First, we prefer the norm because of verliesaversie and FOMO. When you choose the status quo, you know what the outcome will be. When you go for an alternative, you take a risk. Because loss hits twice as hard as the same gain, we don't always choose the best option.
Second, we prefer the norm so as not to be overwhelmed by a multitude of choices, each of which has an uncertain outcome. The more options we have to choose from, the more likely we are to choose the norm (Nebel, 2015).