principle of effectuation Flashcards
way of thinking and decision-making that is based on the idea that entrepreneurs create their future by taking action and making things happen.
EFFECTUATION
idea with a sense of purpose – a desire to improve the state of the world and the lives of individuals by enabling the creation of firms, products, markets, services, and ideas.
EFFECTUATION
way of thinking that is focused on creating opportunities and solving problems by using the resources that are available to you, rather than making predictions and trying to plan for the future.
EFFECTUATION
When expert entrepreneurs seek to build a new venture, they start with their means.
Bird In Hand Principle
Expert entrepreneurs turn this logic on its head—they think in terms of _____________ rather than expected returns.
Affordable Loss Principle
They decide what they are willing to lose rather than what they expect to make.
Affordable Loss Principle
Instead of calculating upfront how much money they will need to launch their project and investing time, effort, and energy in raising that money, the effectual entrepreneur tries to estimate the downside and examines what she is willing to lose.
Affordable Loss Principle
the focus on building partnerships rather than beating competitors.
Crazy Quilt Principle
the ability to turn the unexpected into the profitable.
Lemonade Principle
Having a desire for control over your life
Pilot in the Plane Principle
Control enables entrepreneurs to work on things they think are important, set their own schedules and work with whom they want.
Pilot in the Plane Principle
It is a logic and process that can be used as the firm develops in the “0-60mph” (early startup) phase of growth.
Effectuation
The entrepreneur’s means provide the starting point. The action begins in earnest when the entrepreneur begins interacting with people.
Effectual Cycle
Sometimes the starting point of that interaction is an idea, a provisional goal the entrepreneur uses to initiate the interaction.
Effectual Cycle
Sometimes the interaction is specifically initiated in the terms of “what can we do?” as the entrepreneur determines possibilities together with the person she interacts with.
Effectual Cycle
Filipino Chinese business tycoon and entrepreneur
Henry Sy Sr.
most famous for founding the SM Malls, the Philippines’ largest group of malls
Henry Sy Sr.
owns numerous companies in the areas of real estate, banking, education, mining, retailing, and hospitality, resulting in him being recognized as the wealthiest person in the Philippines, with an estimated personal wealth of 13 billion dollars.
Henry Sy Sr.
“Father of Philippine Retailing” due to owning the largest group of malls in the country.
Henry Sy Sr.
Henry Sy’s life principles or united nations sustainable development goal?
Strive to be a leader in your chosen field.
Henry Sy’s life principles
