How does confirmation bias specifically impede accurate assessment of competitive threats in an entrepreneur's market?

Confirmation bias impedes accurate assessment of competitive threats by causing entrepreneurs to selectively seek out and interpret information that confirms their pre-existing beliefs about the competitive landscape, while ignoring or downplaying evidence that contradicts those beliefs. This can lead to a distorted and incomplete understanding of the true competitive pressures facing the business. For example, if an entrepreneur believes that their product has a unique advantage over competitors, they may focus on positive customer reviews and market research data that supports this belief, while ignoring negative reviews or data that suggests competitors are gaining ground. They might dismiss competitor innovations as irrelevant or inferior, even if those innovations are attracting customers and disrupting the market. Confirmation bias can also lead entrepreneurs to underestimate the capabilities of competitors and overestimate their own strengths. This can result in strategic missteps, such as failing to invest in necessary upgrades or underestimating the threat from new entrants. To overcome confirmation bias, entrepreneurs need to actively seek out diverse perspectives, challenge their own assumptions, and be open to considering evidence that contradicts their pre-existing beliefs. This includes conducting thorough competitive research, soliciting feedback from customers and industry experts, and being willing to admit when they are wrong. The issue is the data that supports the entrepreneurs already held views are given more weight than data that challenges those beliefs. It creates a blind spot.