Effectuation is an entrepreneurial approach developed by Dr. Saras Sarasvathy in 2001 that involves implementing ideas through a framework of heuristics. It consists of five principles: 1) starting with the "bird in hand" of one's own identity, knowledge, and social networks; 2) only investing what can be afforded to lose through affordable losses; 3) scenario planning for best and worst outcomes like making lemonade; 4) building partnerships through a "patchwork quilt" of selected stakeholders; and 5) co-creating the future while in the pilot's seat.

1. EFFECTUATION
WHAT IS EFFECTUATION ? බලපෑම් වාදය
Simply it is the act of implementing carrying into effect.
human action, human activity, act, deed - something that people do or cause to happen.
EFFECTUATION as a APPROACH?
In 2001, Dr. Saras Sarasvathy develop this as a successful entrepreneurial approach,
As per her it is a
1. thinking frame work,
2. a set of heuristics (අත්දැකීමෙන් විනිශ්චය කරන)
3. doing the do-able,
4. how to get the sellable products and services established
By buddhika Dananjaya

2. Five (05) Principles of Effectuation
1. Bird in hand
a. Who am I?
B. What I Know?
c. Whom I Know?
2.Affordable losses
Invest what you can afford to loss
3.Lemonade
Scenario planning (Best and Worst)
4.Patch work quilt
Partnerships with the selected stakeholder
5.Pilot in the plane
Co-Create the future
By buddhika Dananjaya