Characteristics of Entrepreneurial Thinking
Thinking entrepreneurially means
believing in a yet-to-be-made future that can be shaped by human action, and realizing that to the extent
that such action can control the future, one need not expend energies trying to predict it. It is much more
useful to understand and work with the people who are engaged in the decisions and actions that bring it
into existence
Saras D. Sarasvathy
Professor Saras D. Sarasvathy is a member of the Strategy, Entrepreneurship and
Ethics area. In addition to MBA and doctoral courses in entrepreneurship at
Darden, she teaches in doctoral programs in Europe, Asia, Latin America and
Africa.
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Entrepreneurial Thinking
Lawrence Edward Page (born March 26, 1973) is an American businessperson, computer scientist and internet
entrepreneur best known for co-founding Google
Jeffrey Preston Bezos (born January 12, 1964) is an American businessman who is the founder, executive
chairman, and former president and CEO of Amazon, the world's largest e-commerce and cloud-computing
company
Josiah Wedgwood FRS was an English potter, entrepreneur and abolitionist. Founding the Wedgwood company
in 1759, he developed improved pottery bodies by systematic experimentation and was the leader in the
industrialization of the manufacture of European pottery company.
Leonard Samuel Shoen (February 29, 1916 – October 4, 1999) was an American entrepreneur who founded the
U-Haul truck and trailer organization in Ridgefield, Washington
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Effectual Reasoning
Word “effectual” is inverse of “casual”
Effectual Reasoning:
no specific goal
Casual Reasoning: Goal Oriented
May or may not involve Causal Creative Thinking
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Casual and Effectual Reasoning
Casual Reasoning
Creative Casual Reasoning
Effectual Reasoning
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Casual and Effectual Reasoning
• Genghis Khan VS Columbus
•
Chef with menu vs chef without menu
•
Domain-specific skills and training
•
More imagination, spontaneity, risk-taking and salesmanship
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Effectual Reasoning-The process
• Bird in hand
• Resources transformation into a new end-The process
Categories of Means
1.
Who they are?
2.
What do they know?
3.
Whom do they know?
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Effectual Reasoning- The Principles
Casual Reasoning
Effectual Reasoning
• Goal driven
• Means driven
• Expected returns
• Affordable loss
• Competitive Analyses
• Growing network partnerships
• Planning, prediction, and avoiding surprises
• Leveraging the contingencies and being open to surprises
• Opportunities exist outside of our control and
• Opportunities can be found through human actions
can be found
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Affordable Loss
• Product to Customer
• Open to surprises
• New Markets
• Company creation
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