A brief introduction to the Entrepreneurial Mindset and how it is different from the traditional mindset taught to students of traditional business or management programs. I deliver regular courses based on these concepts, and regularly help aspiring and experienced entrepreneurs to put these principles to use in the process of creating new ventures.
Part One of Entrepreneurship Lecture Notes on Students Enterprise Club at www.studentsenterpriseclub.com.
This is a Study guide for intending Entrepreneurs.
Becoming an Entrepreneur is the first info graphic book of an ongoing series of books you will actually read. The average person can read these book in roughly one hour . The hope is that the big truths packed into these little books will make them different from the many other books that you would never pick up or would pick up only to quickly put down forever because they are simply too wordy and don't get to the point.
The entrepreneurial mindset does not only belong to the owners of different enterprises but this quality can be present in many people related to different fields. Focusing on the entrepreneurial mindset, it is the characteristic which motivates the person to evaluate, exploit and discover opportunities. This characteristic is common in habitual entrepreneurs who are different from ordinary business managers as they are passionate in seeking new opportunities and bypass other unfruitful options in order to keep themselves safe from exhaustion. They are keen to concentrate on adaptive executions and they motivate their team members so that the common goal can be achieved (McGrath and MacMillan, 2000).
Part One of Entrepreneurship Lecture Notes on Students Enterprise Club at www.studentsenterpriseclub.com.
This is a Study guide for intending Entrepreneurs.
Becoming an Entrepreneur is the first info graphic book of an ongoing series of books you will actually read. The average person can read these book in roughly one hour . The hope is that the big truths packed into these little books will make them different from the many other books that you would never pick up or would pick up only to quickly put down forever because they are simply too wordy and don't get to the point.
The entrepreneurial mindset does not only belong to the owners of different enterprises but this quality can be present in many people related to different fields. Focusing on the entrepreneurial mindset, it is the characteristic which motivates the person to evaluate, exploit and discover opportunities. This characteristic is common in habitual entrepreneurs who are different from ordinary business managers as they are passionate in seeking new opportunities and bypass other unfruitful options in order to keep themselves safe from exhaustion. They are keen to concentrate on adaptive executions and they motivate their team members so that the common goal can be achieved (McGrath and MacMillan, 2000).
Presentation on how industry disruption occurs, the growth of ideas, and creating an entrepreneurial mindset within the workforce. Burcham shares his "Idea Frame" as well as his "Personal Progression Map"
The thought process of the entrepreneur varies from a normal person to an extent that it functions differently. Learn about the difference, the role creativity plays, what motivates an entrepreneur and the process of transitioning from Idea to Business opportunity!
Also get an insight why business fail, so that you can avoid those mistakes and how to start a business with low investment.
Entrepreneur
includes
Definition of Entrepreneur
Internal & External Factors
Functions
Entrepreneurial Motivation & Barriers
Classification
Theories
Concept
Development of Entrepreneurship
Culture
Stages in entrepreneurial process
This topic is related to Business, which is Entrepreneurship development. It can refer by any technical & Management students. It is useful for B.Tech and MBA students under BPUT Syllabus 2014
Introduction to entreprenershipunit i to vanandmohandass
Introduction, Meaning Characteristics, Factors, Functions, Types, Challenges, Women Entrepreneurship, MSMEs, Business Plan & Model, Feasibility analysis, etc..
To begin our exploration of entrepreneurship and the environment
To distinguish between business and social entrepreneurs
To distinguish between entrepreneurs and small-business owners
To explain the importance of entrepreneurs for economic growth
To examine the historical development of entrepreneurs and of entrepreneurship
To define entrepreneurship and explore the major schools of entrepreneurial thought
To realise that entrepreneurship is a pathway to freedom
Brand Box 4 - What's The Big Idea? The Marketer's Ultimate ToolkitAshton Bishop
http://www.stepchangemarketing.com/
In this Slideshare presentation:
1. Brand Box 4 - What's the big idea? 2. Actions from insights 3. Why Innovation? 4. Innovation context 5. Bill Gates 6. Corporate and Social Responsibility 7. Successful Innovation 8. Purpose of creativity 9. Importance of Innovation 10. Importance of Innovation cont. 11. Innovation driving growth 12. Applied Innovation 13. Limitations of accepting status quo 14. Knowledge vs. Creativity 15. Innovation as a habit 16. 5 roles in ideas development 17. The triangle for successful innovation 18. Sources of inspiration 19. Crowd sourcing 20. Where's your suggestion box? 21. What is crowd sourcing? 22. Consumer generated content 23, Share with the masses 24, Generation C(ash) 25 User generated content radar 26. Case study: Smith's "Do us a flavour" 27. Case study: Goldcorp 28. Case study: Mitsubishi 29. Case study: InnoCentive 30. Case study: Wikipedia 31. Case study: the London bombing 32. Innovation tools 33. Scamper 34. Scamper: An example 35. Scamper: Adapt something to it 36. Scamper: Magnify it 37. Scamper: Modify it 38. Scamper: Put it to some other use 39. Scamper: Eliminate something 40. Scamper: Reverse it 41. Scamper Rearrange it 42. Parameter analysis 43. Sensory overload 44. Future casting ideas generation 45. Process review 46. Using experience to drive innovation 47. Innovation platforms 48. The Phoenix checklist 49. The Phoenix checklist cont. 50. Six thinking hats by Edward de Bono 51. Six thinking hats cont. 52. Evaluation methods 53. Potential impact plotting 54. "Yes" reasons
Presentation on how industry disruption occurs, the growth of ideas, and creating an entrepreneurial mindset within the workforce. Burcham shares his "Idea Frame" as well as his "Personal Progression Map"
The thought process of the entrepreneur varies from a normal person to an extent that it functions differently. Learn about the difference, the role creativity plays, what motivates an entrepreneur and the process of transitioning from Idea to Business opportunity!
Also get an insight why business fail, so that you can avoid those mistakes and how to start a business with low investment.
Entrepreneur
includes
Definition of Entrepreneur
Internal & External Factors
Functions
Entrepreneurial Motivation & Barriers
Classification
Theories
Concept
Development of Entrepreneurship
Culture
Stages in entrepreneurial process
This topic is related to Business, which is Entrepreneurship development. It can refer by any technical & Management students. It is useful for B.Tech and MBA students under BPUT Syllabus 2014
Introduction to entreprenershipunit i to vanandmohandass
Introduction, Meaning Characteristics, Factors, Functions, Types, Challenges, Women Entrepreneurship, MSMEs, Business Plan & Model, Feasibility analysis, etc..
To begin our exploration of entrepreneurship and the environment
To distinguish between business and social entrepreneurs
To distinguish between entrepreneurs and small-business owners
To explain the importance of entrepreneurs for economic growth
To examine the historical development of entrepreneurs and of entrepreneurship
To define entrepreneurship and explore the major schools of entrepreneurial thought
To realise that entrepreneurship is a pathway to freedom
Brand Box 4 - What's The Big Idea? The Marketer's Ultimate ToolkitAshton Bishop
http://www.stepchangemarketing.com/
In this Slideshare presentation:
1. Brand Box 4 - What's the big idea? 2. Actions from insights 3. Why Innovation? 4. Innovation context 5. Bill Gates 6. Corporate and Social Responsibility 7. Successful Innovation 8. Purpose of creativity 9. Importance of Innovation 10. Importance of Innovation cont. 11. Innovation driving growth 12. Applied Innovation 13. Limitations of accepting status quo 14. Knowledge vs. Creativity 15. Innovation as a habit 16. 5 roles in ideas development 17. The triangle for successful innovation 18. Sources of inspiration 19. Crowd sourcing 20. Where's your suggestion box? 21. What is crowd sourcing? 22. Consumer generated content 23, Share with the masses 24, Generation C(ash) 25 User generated content radar 26. Case study: Smith's "Do us a flavour" 27. Case study: Goldcorp 28. Case study: Mitsubishi 29. Case study: InnoCentive 30. Case study: Wikipedia 31. Case study: the London bombing 32. Innovation tools 33. Scamper 34. Scamper: An example 35. Scamper: Adapt something to it 36. Scamper: Magnify it 37. Scamper: Modify it 38. Scamper: Put it to some other use 39. Scamper: Eliminate something 40. Scamper: Reverse it 41. Scamper Rearrange it 42. Parameter analysis 43. Sensory overload 44. Future casting ideas generation 45. Process review 46. Using experience to drive innovation 47. Innovation platforms 48. The Phoenix checklist 49. The Phoenix checklist cont. 50. Six thinking hats by Edward de Bono 51. Six thinking hats cont. 52. Evaluation methods 53. Potential impact plotting 54. "Yes" reasons
Entrepreneurial Strategy and Competitive DynamicsAfter reading t.docxSALU18
Entrepreneurial Strategy and Competitive Dynamics
After reading this chapter, you should have a good understanding of the following learning objectives:
LO8.1 The role of opportunities, resources, and entrepreneurs in successfully pursuing new ventures.
LO8.2 Three types of entry strategies—pioneering, imitative, and adaptive—commonly used to launch a new venture.
LO8.3 How the generic strategies of overall cost leadership, differentiation, and focus are used by new ventures and small businesses.
LO8.4 How competitive actions, such as the entry of new competitors into a marketplace, may launch a cycle of actions and reactions among close competitors.
LO8.5 The components of competitive dynamics analysis—new competitive action, threat analysis, motivation and capability to respond, types of competitive actions, and likelihood of competitive reaction.
Learning from Mistakes
Digg was an early social network pioneer. In 2004, its founder, Kevin Rose, had an innovative idea. Rather than allow major news services to decide what the big news stories of the day were, Rose figured that people could make that choice. He founded Digg, a news-sharing site, to give them that choice.1 Users would post news articles they found interesting. Other users would then vote the story up or down and also post comments about the article. Articles that were voted up moved up in prominence on the site. Those voted down sank and eventually disappeared. The business took off and served as a front page article on BusinessWeek in 2006. Notable venture capitalists like Marc Andreessen, Ron Conway, and Greylock Partners invested $45 million in Digg. It was rumored that Google was interested in buying Digg in 2008 for a reported $200 million.
But the deal never happened, and Digg quickly fell from favor. It struggled due to two major issues—new competition and poor operational decisions. As we’ll discuss later in this chapter, innovative business ideas are typically quickly imitated. Digg faced two forms of imitation. First, Reddit and other sites came online to challenge Digg by implementing similar business models. Second, other social network sites,
247
such as Facebook and Twitter, ate away at Digg’s business by letting users share news articles they found interesting with their friends and followers. This seemed much more personalized to many, since they would be more interested in what their friends recommended than how the general population voted on Digg.
Digg also suffered by not building the resource set needed to serve their users effectively. They struggled to handle the volume of traffic on their site, leaving users frustrated when the site kept going down. When they finally went to a wholesale upgrade of their systems in 2010, there were a number of technical glitches that drove users away. They also didn’t make the site as easy to use as they should have or as easy as their competitors’ sites. As Rose himself noted, “It took eight steps to post a li ...
What large companies can learn from the working culture and methodos of startups
The linear career path is long gone. Organizations need managers and executives with a high degree of diversity and curiousity to navigate through uncertainty. People who were exposed to a startup or involved in intrapreneurship experience
1. Characteristics or Features or Importance of Successful Entrepreneurs. Or explain the personal Features of Entrepreneurial leadership.
2. What is entrepreneurial decision process?
3. Entrepreneurship and the Entrepreneurial Process. Explain.
4. Explain Break even analysis and its calculator.
5. Write down the steps in preparing Marketing Plan.
6. What is the Importance of International Entrepreneurship?
7. Entrepreneurial Entry into International Business.
8. Features of Joint Venture and Franchising.
9. Features and types of Synergy in Mergers & Acquisition.
10. What are the Methods of Generating Ideasalso explain Innovation, Creativity and Entrepreneurship.
Entrepreneurial Development Course will strive to provide unique learning experiences based on artifacts, stories and lives from Indian business traditions of ingenuity, resourcefulness and innovation.
Babele reinventing organizations through intrapreneurshipEmanuele Musa
Intrapreneurship is a major driver for accelerating culture change and organizational transformation. Intrapreneurs help develop the capability to capitalize on opportunities of change: developing a culture where risk-taking, acceptance of failure, and consequently, learning from it - are promoted.
The creation of intrapreneurship programs require a strong component of Human-centered design, so the program takes into account the needs and challenges of the different stakeholders involved.
Enjoy this deck if you want to learn more about the trends, pitfalls and best practices to foster intrapreneurship effectively in your organization.
For more info: www.babele.co
Crafted by our interns to help founders and teams in their Start up journey.
We suggest that you download the file for better viewing and for your to conveniently access the links indicated.
Thank you!
This presentation outlines what crowdsourcing is, examines how it has effected the advertising and marketing industry and examines whether or not it offers up a new model for creativity.
This is the second part of this module. You can see that I use a lot more visuals in this one, influenced by Garr Reynold's video talk on Presentation Zen. I guess visuals by themselves aren't as helpful as text, so maybe I'll try adding audio on this one. :)
Emotional Intelligence and Interpersonal DynamicsChris Zobrist
A short introduction to the basic concepts of emotional and social intelligence, many terms and concepts introduced in Daniel Goleman's book Social Intelligence.
This is a simple framework for entrepreneurs to assess their own stage of development towards creating a successful new venture. This is based on 10 years of my own experience starting my own businesses, teaching entrepreneurship in universities, and advising entrepreneurs. It also draws on newer concepts in entrepreneurship, including effectuation.
Personal Brand Statement:
As an Army veteran dedicated to lifelong learning, I bring a disciplined, strategic mindset to my pursuits. I am constantly expanding my knowledge to innovate and lead effectively. My journey is driven by a commitment to excellence, and to make a meaningful impact in the world.
Putting the SPARK into Virtual Training.pptxCynthia Clay
This 60-minute webinar, sponsored by Adobe, was delivered for the Training Mag Network. It explored the five elements of SPARK: Storytelling, Purpose, Action, Relationships, and Kudos. Knowing how to tell a well-structured story is key to building long-term memory. Stating a clear purpose that doesn't take away from the discovery learning process is critical. Ensuring that people move from theory to practical application is imperative. Creating strong social learning is the key to commitment and engagement. Validating and affirming participants' comments is the way to create a positive learning environment.
3.0 Project 2_ Developing My Brand Identity Kit.pptxtanyjahb
A personal brand exploration presentation summarizes an individual's unique qualities and goals, covering strengths, values, passions, and target audience. It helps individuals understand what makes them stand out, their desired image, and how they aim to achieve it.
India Orthopedic Devices Market: Unlocking Growth Secrets, Trends and Develop...Kumar Satyam
According to TechSci Research report, “India Orthopedic Devices Market -Industry Size, Share, Trends, Competition Forecast & Opportunities, 2030”, the India Orthopedic Devices Market stood at USD 1,280.54 Million in 2024 and is anticipated to grow with a CAGR of 7.84% in the forecast period, 2026-2030F. The India Orthopedic Devices Market is being driven by several factors. The most prominent ones include an increase in the elderly population, who are more prone to orthopedic conditions such as osteoporosis and arthritis. Moreover, the rise in sports injuries and road accidents are also contributing to the demand for orthopedic devices. Advances in technology and the introduction of innovative implants and prosthetics have further propelled the market growth. Additionally, government initiatives aimed at improving healthcare infrastructure and the increasing prevalence of lifestyle diseases have led to an upward trend in orthopedic surgeries, thereby fueling the market demand for these devices.
Cracking the Workplace Discipline Code Main.pptxWorkforce Group
Cultivating and maintaining discipline within teams is a critical differentiator for successful organisations.
Forward-thinking leaders and business managers understand the impact that discipline has on organisational success. A disciplined workforce operates with clarity, focus, and a shared understanding of expectations, ultimately driving better results, optimising productivity, and facilitating seamless collaboration.
Although discipline is not a one-size-fits-all approach, it can help create a work environment that encourages personal growth and accountability rather than solely relying on punitive measures.
In this deck, you will learn the significance of workplace discipline for organisational success. You’ll also learn
• Four (4) workplace discipline methods you should consider
• The best and most practical approach to implementing workplace discipline.
• Three (3) key tips to maintain a disciplined workplace.
Business Valuation Principles for EntrepreneursBen Wann
This insightful presentation is designed to equip entrepreneurs with the essential knowledge and tools needed to accurately value their businesses. Understanding business valuation is crucial for making informed decisions, whether you're seeking investment, planning to sell, or simply want to gauge your company's worth.
Memorandum Of Association Constitution of Company.pptseri bangash
www.seribangash.com
A Memorandum of Association (MOA) is a legal document that outlines the fundamental principles and objectives upon which a company operates. It serves as the company's charter or constitution and defines the scope of its activities. Here's a detailed note on the MOA:
Contents of Memorandum of Association:
Name Clause: This clause states the name of the company, which should end with words like "Limited" or "Ltd." for a public limited company and "Private Limited" or "Pvt. Ltd." for a private limited company.
https://seribangash.com/article-of-association-is-legal-doc-of-company/
Registered Office Clause: It specifies the location where the company's registered office is situated. This office is where all official communications and notices are sent.
Objective Clause: This clause delineates the main objectives for which the company is formed. It's important to define these objectives clearly, as the company cannot undertake activities beyond those mentioned in this clause.
www.seribangash.com
Liability Clause: It outlines the extent of liability of the company's members. In the case of companies limited by shares, the liability of members is limited to the amount unpaid on their shares. For companies limited by guarantee, members' liability is limited to the amount they undertake to contribute if the company is wound up.
https://seribangash.com/promotors-is-person-conceived-formation-company/
Capital Clause: This clause specifies the authorized capital of the company, i.e., the maximum amount of share capital the company is authorized to issue. It also mentions the division of this capital into shares and their respective nominal value.
Association Clause: It simply states that the subscribers wish to form a company and agree to become members of it, in accordance with the terms of the MOA.
Importance of Memorandum of Association:
Legal Requirement: The MOA is a legal requirement for the formation of a company. It must be filed with the Registrar of Companies during the incorporation process.
Constitutional Document: It serves as the company's constitutional document, defining its scope, powers, and limitations.
Protection of Members: It protects the interests of the company's members by clearly defining the objectives and limiting their liability.
External Communication: It provides clarity to external parties, such as investors, creditors, and regulatory authorities, regarding the company's objectives and powers.
https://seribangash.com/difference-public-and-private-company-law/
Binding Authority: The company and its members are bound by the provisions of the MOA. Any action taken beyond its scope may be considered ultra vires (beyond the powers) of the company and therefore void.
Amendment of MOA:
While the MOA lays down the company's fundamental principles, it is not entirely immutable. It can be amended, but only under specific circumstances and in compliance with legal procedures. Amendments typically require shareholder
[Note: This is a partial preview. To download this presentation, visit:
https://www.oeconsulting.com.sg/training-presentations]
Sustainability has become an increasingly critical topic as the world recognizes the need to protect our planet and its resources for future generations. Sustainability means meeting our current needs without compromising the ability of future generations to meet theirs. It involves long-term planning and consideration of the consequences of our actions. The goal is to create strategies that ensure the long-term viability of People, Planet, and Profit.
Leading companies such as Nike, Toyota, and Siemens are prioritizing sustainable innovation in their business models, setting an example for others to follow. In this Sustainability training presentation, you will learn key concepts, principles, and practices of sustainability applicable across industries. This training aims to create awareness and educate employees, senior executives, consultants, and other key stakeholders, including investors, policymakers, and supply chain partners, on the importance and implementation of sustainability.
LEARNING OBJECTIVES
1. Develop a comprehensive understanding of the fundamental principles and concepts that form the foundation of sustainability within corporate environments.
2. Explore the sustainability implementation model, focusing on effective measures and reporting strategies to track and communicate sustainability efforts.
3. Identify and define best practices and critical success factors essential for achieving sustainability goals within organizations.
CONTENTS
1. Introduction and Key Concepts of Sustainability
2. Principles and Practices of Sustainability
3. Measures and Reporting in Sustainability
4. Sustainability Implementation & Best Practices
To download the complete presentation, visit: https://www.oeconsulting.com.sg/training-presentations
Attending a job Interview for B1 and B2 Englsih learnersErika906060
It is a sample of an interview for a business english class for pre-intermediate and intermediate english students with emphasis on the speking ability.
What are the main advantages of using HR recruiter services.pdfHumanResourceDimensi1
HR recruiter services offer top talents to companies according to their specific needs. They handle all recruitment tasks from job posting to onboarding and help companies concentrate on their business growth. With their expertise and years of experience, they streamline the hiring process and save time and resources for the company.
Improving profitability for small businessBen Wann
In this comprehensive presentation, we will explore strategies and practical tips for enhancing profitability in small businesses. Tailored to meet the unique challenges faced by small enterprises, this session covers various aspects that directly impact the bottom line. Attendees will learn how to optimize operational efficiency, manage expenses, and increase revenue through innovative marketing and customer engagement techniques.
Explore our most comprehensive guide on lookback analysis at SafePaaS, covering access governance and how it can transform modern ERP audits. Browse now!
1. What is the “Entrepreneurial
Mindset”?
Entrepreneurship and Small Business Management
Christopher Zobrist, MBA
Adapted from “The Entrepreneurial Method”
by S.D. Sarasvathy, 2006
2. Theories of Entrepreneurship
Personality/Trait Theory
“Crystal Ball” or Lone Visionary
Opportunity Recognition
Right Place, RIght Time
Entrepreneurial Thought Process
Managerial vs Entrepreneurial
3. Facts About Entrepreneurs
65% did not start businesses as children
or students, and did not have parents who
were entrepreneurs
75% learned skills they used in starting
their business after age 21
Source: Inc 500 Founders’ Survey (1996)
4. Facts About Entrepreneurs
65% developed their idea by talking to or
working with customers or partners
70% did not have a vision for a “venture-
scale” business, they just wanted to start
something
Source: Inc 500 Founders’ Survey (1996)
5. Case Study: Bill Gates
The Myth
Bill Gates was a visionary who saw the future that all PCs
would run Windows
Built Microsoft into the bigest software company in the
world by himself because of his vision and talent
6. Case Study: Bill Gates
The Facts
Bill’s family was very wealthy, and Bill went to a gifted high
school for children of rich families
Bill learned how to program a computer in high school (in
the late 1960s, computers were very rare)
Bill did not “drop out” of Harvard, but rather took a “leave
of absence” and could come back at any time
Bill’s mother introduced Bill’s new company, Micro-Soft, to
the CEO of IBM
A few weeks after the introduction, IBM signed a deal with
Bill for MS-DOS, allowing Bill to retain the IP
Source: Leap, by Rick Smith
7. Case Study: Mark Zuckerberg
The Myth
Mark was a visionary who saw online social networks as
the future of online media
Mark built Facebook by himself from the beginning based
on his vision and talent
Through his strong vision and character, was able to raise
millions of dollars easily for Facebook
8. Case Study: Mark Zuckerberg
The Facts
Learned how to write computer programs since he was 10
years old
Worked on many “projects” including Facemash and The
Facebook, many of which failed early, but he learned from
them
Started The Facebook with just $2000
Had a strong core team who helped him grow Facebook
before getting external funding
Met Sean Parker who helped him raise money to grow the
business
Source: The Facebook Effect, by David Kirkpatrick
10. Case Study: Japan – SONY
Co-founded by Ibuka
First innovation (electric rice
cooker) failed
Stayed in business by
repairing short-wave radios
Ibuka envisioned a pocket
radio, but was initially
denied the license by the
Japanese government
11. Case Study: Japan - SONY
Bell Labs developed
transitors, but didn’t think
they could be used in a
pocket radio
Ibuka licensed the
technology and pushed his
engineers for 3 years to
develop the first transitor
radio
Sold 1.5 million units, and
Sony became a
technology leader
12. Class Discussion:
Vietnam – FPT
Who started FPT?
How?
Why?
What was FPT’s original business?
Were they successful in this business?
How did FPT’s business evolve over time?
Are they successful? Why or why not?
13. What is the Entrepreneurial
Mindset?
Entrepreneurial vs Managerial
Effectual vs Causal
14. Learning Objectives
How do entrepreneurs think when starting a
new business?
How is this different from how Managers
think when managing an established
business?
16. Causal - If we can accurately predict the
future, then we can control it.
Predictive: Start with Goals
Analysis Before Action
Goals drive stakeholder and resource acquisition
Control is achieved by being one step ahead of the
competition
Avoid failure at all costs
17. Effectual - If we can control the future, we
don’t need to predict it.
Non-predictive: Start with Means
Actions and interactions with stakeholders drive the
process
Goals are set by stakeholders who invest only what
they are willing to lose
Control is achieved by action; transforming current
reality into new and unforeseen possibilities
Fail small and early and LEARN from it
20. Elements of the Effectual
Entrepreneur
Process
Principles
Logic
21. Effectual Process
Begin with who you are, what you know, and
whom you know
Take action and interact with other people
Focus on what you can do and do it
People you interact with self- select into the
process by making commitments to the venture
Each commitment results in new means and new
goals for the venture
22. Effectual Process
Expanding Cycle of Resources New Means
Possible Goals
and Actions
Who I am Obtain
Interact with
What I know What I can do Stakeholder
other people
Whom I know Committment
Means
Available
Converging Cycle of Interests
New Goals
New Markets
New Opportunities
New Ventures
23. Effectual Principles
Means-driven (as opposed to goal-driven) action
Affordable loss, stakeholders only invest what they
are willing to lose
Negotiate with any and all stakeholders who are
willing to make actual commitments to the project
Be flexible by leveraging surprises rather than trying
to avoid them
Work with potential customers as the prime driver of
opportunity
24. Effectual Logic
See the world as open, still in the making
Very rarely see opportunities as given or
outside of their control
Have an instrumental view of firms and
markets
Do not seek to avoid failure because it is
part of the learning process
25. Class Activity and Discussion
Read “Venturing” Case Excise Problem 1
Based on your new knowledge of Effectuation,
work in teams to provide answers to the questions
in Problem 1
After you have finished answering the questions,
choose a partner and compare your answers.
Be prepared to discuss your answers with the
class.
26. Venturing Problem 1
1. Who could be your potential customers for this
product?
2. Who could be your potential competitors for this
product?
3. What information would you seek about potential
customers and competitors—list questions you would
want answered.
4. How will you find out this information—what kind of
market research would you do?
5. What do you think are the growth possibilities for this
company?
Editor's Notes
Contingent (depends on) the situation Causal – Better for stable and mature companies, when goals are clear and efficient execution is most important. Effectual – Better for new firms or markets where goals are not yet clear and flexibility is most important.
Experienced Entrepreneurs begin with who they are, what they know, and whom they know, and immediately start taking action and interacting with other people. They focus on what they can do and do it, without worrying much about what they should do. Some of the people they interact with self- select into the process by making commitments to the venture. Each commitment results in new means and new goals for the venture. As resources accumulate in the growing network, constraints begin to appear. The constraints reduce possible changes in future goals and restrict who may or may not be admitted into the stakeholder network. Assuming the stakeholder accumulation process does not fail, goals and networks concurrently converge into a new market and a new firm.
Means-driven (as opposed to goal-driven) action. The emphasis here is on creating something new with existing means rather than discovering new ways to achieve given goals. Commit in advance only what one is willing to lose rather than investing in calculations about expected returns to the project. Negotiate with any and all stakeholders who are willing to make actual commitments to the project, without worrying about opportunity costs, or carrying out elaborate competitive analyses. Be flexible by leveraging surprises rather than trying to avoid them, overcome them, or adapt to them. Work with potential customers as the prime driver of opportunity rather than limiting entrepreneurial efforts to exploiting factors such as technological trajectories and socioeconomic trends.
Effectuators see the world as open, still in the making. They see a genuine role for human action. In fact, they see both firms and markets as human-made artifacts. Effectuators very rarely see opportunities as given or outside of their control. For the most part, they work to create as well as recognize and discover opportunities. Effectuators often have an instrumental view of firms and markets. They do not act as though they were the agents of the firm or as suppliers catering to demand―firms are a way for them to create something new for themselves and/or for the world; markets are more likely made than found; and they are made through an expanding network of self-selected stakeholders. Effectuators do not seek to avoid failure; they seek to achieve success. They recognize that failing is an integral part of becoming an experienced entrepreneur.