Effectual
Entrepreneurship
Multimediadesign
September 2021
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Effectual Entrepreneurship, Study Guides, Projects, Research of Entrepreneurship
The entrepreneurial process. Why – how – what. Why? To understand why some entrepreneurs are more successful than others. How? By describing what steps an.
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Effectual
Entrepreneurship
Multimediadesign
September 2021
What is
entrepreneurship?
Please discuss with
you neighbor
Two different approaches
The Approach The Market The Logic The Heuristics
Search and select Markets are fixed. Explore a finite set of possibilitites to find unserved, underserved or latent areas of the market.
Causation Predict to identify a goal. Focus is on achieving that goal by accumulating the necessary means. Surprises are bad.
Create and transform Markets can be created.
Knowing it is possible to create demand, let interactions give rise to an infinite set of possibilities, which can then be prioritized by self- selected stakeholder.
Effectuation Start taking action. Focus is on transforming a set of evolving means to generate goals that emerge along the way. Surprises a good.
Source: Read, Sarasvathy, Dew & Wiltbank 2017
Saras Sarasvathy:
The theory of Effectuation
Describes an approach to making
decisions and performing actions in
entrepreneurship processes, where you
identify the next, best step by
assessing the resources available in
order to achieve your goals, while
continuously balancing these goals with
your resources and actions.
The four principles
- Bird-in-Hand : You have to create solutions
with the resources available here and now.
- Affordable loss: You should only invest as
much as you are willing to lose.
- Crazy Quilt : Entering into new partnerships
can bring the project new funds and new
directions.
- Lemonade principle : Mistakes and surprises
are inevitable and can be used to look for
new opportunities.
Source: https://innovationenglish.sites.ku.dk/model/sarasvathy- effectuation/
The bird-in-hand principle
Start with what you have
Create opportunities and perform actions
based on the resources available here and
now by asking:
1.Who are you?
2.What do you know?
3.Who do you know?
The crazy quilt principle
Form partnerships
The effectuation logic also includes the principle of entering into collaborations and partnerships in
order to bring new resources into the project. The principle of Crazy quilt emphasizes the value of collaborating with various types of partners who are willing to commit, rather than searching for
potential partners who might not be available or motivated.
Sarasvathy calls the type of partnership for Crazy quilt, because it is characterized by brightly
colored and quirky patterns.
The lemonade principle
Leverage surprise