Cognition and Organisational Resilience Among Small Scale Enterprises in Lagos State

Abstract

In the vibrant economic environment of Lagos State, Small and Medium-scale Enterprises (SMEs) play a pivotal role in driving growth, employment generation, and socio-economic development. However, these enterprises grapple with multifaceted challenges, from economic fluctuations to regulatory intricacies. Against the backdrop of recent global disruptions, including the COVID-19 pandemic, the ability of SMEs to adapt and persevere has assumed paramount importance. To investigate the relationship between cognition and organizational resilience, a conscious sampling method was employed, involving 500 participants from diverse sectors. A structured questionnaire, featuring Likert scale questions, was utilized to collect data on demographic characteristics, cognition (independent variable), and organizational resilience (dependent variable). The results unequivocally establish a significant and positive correlation between cognition and organizational resilience among SMEs in Lagos State. This research underscores the imperative for SME owners and managers to prioritize the development of cognitive skills and strategies within their organizations. It emphasizes the role of cognition in decision-making, opportunity recognition, and navigating the complexities of entrepreneurship. Recommendations include fostering an environment that encourages cognitive diversity, critical thinking, and continuous learning among employees and entrepreneurs. Moreover, addressing the psychological challenges inherent in entrepreneurial settings, such as stress and information overload, is vital for enhancing cognitive processes and, consequently, firm performance.