2. Framework for entrepreneurial thinking
Common way of problem solving used by
expert entrepreneurs
Idea
Sense of purpose
3. Developed by Saras Sarasvathy (University of
Virginia Darden Graduate School of Business
Research
Gave expert entrepreneurs a problem set
Wide array of participants from ice cream to
steel
Responses were documented (video taped
and transcribed)
4. Expert Entrepreneurs…
Limit risks by understanding what they can
afford to loose
Create their own market opportunity
Trust people
5. Effectual thinking can be taught
Failure increases the odds of individual
success
Entrepreneurial thinking can be taught
6. Causal thinking = Managerial thinking
Choosing the best means to achieve a goal
Effectual thinking = Entrepreneurial thinking
Imagining possible new ends using a given set of
means
7. Bird in the hand principle
Who I am
What I know
Whom I know
Start with your means; don’t wait for the perfect
opportunity
8. Affordable loss principle
Set affordable loss
What is my threshold?
Evaluate opportunities based on whether the
downside is acceptable
9. Lemonade principle
Embrace surprises that come from uncertainties
Be flexible
Don’t be tied down to your goals – ADJUST
Have a back up plan
10. Crazy quilt principle
Build partnerships with people, industries and
How do I go about lack of strategic planning,
uncertainties, and problems?
11. Pilot in the plane principle
Focus on activities within your control
Control vs. predict
Believes that the future is neither found nor
predicted
The future is made