EFFECTUATION

Entrepreneurship is a skill anyone can learn, not a gift.  Decades of Research into how Expert Entrepreneurs Think and Act Led to Effectuation, a powerful set up principles for Startup Success.

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Read the Latest Effectuation Stories


Is Elon Musk acting Effectually at Twitter?

Over the past few weeks there have been many articles written about Elon Musk and his actions at Twitter including...


Effectuation Kids Book Series Named Best for Fostering Entrepreneurship

The new series of children's books based on the teachings of Saras Sarasvathy (link) have garnered another honor this...


New UVA Darden Online Course Offers Power of Effectuation to Learners Around the World

A new massive online open course from the University of Virginia Darden School of Business offers learners from...


New Book Series Takes Power of Effectuation to Kids

University of Virginia Darden School of Business Professor Saras Sarasvathy’s theory of Effectuation is a global...

The Principles of Effectuation

Whether you're new to entrepreneurship or have been creating new ventures for a while, you'll find that there is a science to it – a common logic that expert entrepreneurs use across industries, regions, and time. This approach is called effectuation. It offers a method for tackling problems and growing your business. Effectuation is based on taking action and exploring possibilities, rather than trying to predict the future. By using this approach, entrepreneurs can be more flexible and adaptable, and they can better navigate uncertainty and risk. So, whether you're just starting out or are an experienced entrepreneur, you can benefit from using the principles of effectuation in your decision-making.

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When expert entrepreneurs set out to build a new venture, they start with their means: who I am, what I know, and whom I know. Then, the entrepreneurs imagine possibilities that originate from their means
 
 

affordable-loss

Expert entrepreneurs limit risk by understanding what they can afford to lose at each step, instead of seeking large all-or- nothing opportunities. They choose goals and actions where there is upside even if the downside ends up happening

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Expert entrepreneurs build partnerships with self-selecting stakeholders. By obtaining pre-commitments from these key partners early on in the venture, experts reduce uncertainty and co-create the new market with its interested participants

lemonade

Expert entrepreneurs invite the surprise factor. Instead of making “what-if” scenarios to deal with worst-case scenarios, experts interpret “bad” news and surprises as potential clues to create new markets

 

 

worldview

By focusing on activities within their control, expert entrepreneurs know their actions will result in the desired outcomes. An effectual worldview is rooted in the belief that the future is neither found nor predicted, but rather made

 

 

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Whether you come to this site as a entrepreneurial newbie or a seasoned creator of new ventures, you’ll discover that there is a science to entrepreneurship — a common logic we have observed in expert entrepreneurs across industries, geographies, and time. We call it effectuation

Listen to a Podcast  About Effectuation

Podcast Featuring Professor Sarasvathy

Companies Practicing Effectuation

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SEE FUBU FOUNDER DAYMOND JOHN TALK ABOUT THE BIRD IN HAND PRINCIPLE

Daymond John, one of the original Sharks explains to Professor Sarasvathy how you can list the means you have to start a business from looking at the things that surround you.

View More Effectuation Videos

SEE VIRGIN'S RICHARD BRANSON DISCUSS HIS CRAZY QUILT

Before he took on space, he took on Entrepreneurship and Branson's approach was pure Effectuation.

Books About Effectuation from Around the World

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See Professor Sarasvathy's Influential Ted Talk

View an Effectuation Explainer and Dispel Many Common Entrepreneurial Myths

Enroll in the New Effectuation  Massive Open Online Course Presented by Professor Sarasvathy

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