WEEK 2-3 Flashcards
is a way of thinking and decision-making that is based on the idea that entrepreneurs create their future by
taking action and making things happen. a sense of purpose.
Effectuation
6 Principles of Effectuation
- Means Bird in Hand Principle
- Affordable Loss (Focus on downside)
- Crazy Quilt Principle ( Form Partnership)
- Lemonade Principle (Leverage Contingencies)
- Pilot in the Plane Principle (Control the Controllable)
When expert entrepreneurs seek to build a new venture, they
start with their means. These means can be grouped into three categories: Who I am, What I Know, and Who I Know.
Bird In Hand Principle (Start with your means)
They decide what they are willing to lose rather than what they expect to make. Expert entrepreneurs turn this logic on its head—they think in terms of affordable loss rather than expected returns.
AFFORDABLE LOSS PRINCIPLES (Set Affordable loss)
is the focus on building partnerships rather than beating competitors.
The crazy quilt principle
the ability to turn the unexpected into the profitable. Expert entrepreneurs learn not only to work with surprises but also to take advantage of them.
LEMONADE PRINCIPLE (Leverage Contingencies)
any chose entrepreneurship because they want to be their own boss and choose their own course. 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 (Control the Controllable)
Effectuation isn’t a static, one-time exercise. It is a logic and process that
can be used as the firm develops in the “0-60mph” (early startup) phase of
growth.
Effectual Cycle
Filipino Chinese business tycoon and
entrepreneur. most famous for founding the SM Malls, the Philippines’ largest group of malls. the “Father of Philippine
Retailing”.
Henry Sy Sr.
