1. Conservative corporate culture
The most treacherous trap is a conservative corporate culture. A corporate culture that relies on vertical reporting can be pernicious for innovation. Think of it this way: if employees lower on the ladder are constantly accountable to the top, they are less likely to take initiative and propose alternatives. This can keep knowledge in places where it doesn't pay off.
Therefore, it is important for SMEs to create an environment where conversation is possible and where employees can move flexibly in and out of their roles. The talent in the organization must be utilized to its fullest potential, and this is only possible if an open corporate culture is created.