Effectual Entrepreneurship Chapter 9

Pilot in the plane principle

All previous principles put together. The future comes from what people do. The future cannot be predicted, by entrepreneurs can control some of the factors which determine the future. (Not inevitable trends)

Lemondade principle

Embrace and leverage surprises, not avoid them

Effectuation is used in situations of uncertainty

Entrepreneurs will determine goals according to the recourses in their possession

Causal reasoning is used when the future is predictable

Entrepreneurs will determine goals to achieve and look for recourses to do so

Crazy quilt principle

Form a partnership, build a network, cooperate with those you can trust, pre-commitment. Not competitive analysis.

Affordable loss principle

Invest what you can afford to lose and minimize losses. Not expected return/profit, looking at what losses will be.

Bird in hand principle

start with your means (who you are, what you know, who you know. No pre-set goals in initial stages

Novice Entrepreneurs

to the extent that we can predict the future, we can control it.

Expert entrepreneurs

to the extent we can control the future, we don't need to predict it