Effectual Cycle
The entrepreneur’s means provide the starting point. The action begins in earnest when the entrepreneur begins interacting with people. Sometimes the starting point of that interaction is an idea, a provisional goal the entrepreneur uses to initiate the interaction. 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. Regardless, each interaction can terminate without a commitment. In that case, the opportunity, as the entrepreneur and that specific person she interacts with envisioned, is on hold. Alternatively, that interaction might result in a commitment. As we described upfront, those commitments have two effects. One effect of adding a stakeholder to the venture is the addition of that stakeholder’s means—the possibilities those means suggest. At the same time, new goals also accompany the commitment, adding to the constraints accumulated by the venture and converging it toward a specific direction. At any time in this cycle, unexpected events, information and meetings can change the environment the venture is developing. Those contingencies have similar effects to commitments. On one hand, they present new resources—new means the entrepreneur can use to expand the possibilities of the venture. On the other hand, they present new constraints also, perhaps sending the venture in a more specific direction.
Research Papers :
On the Entrepreneurial Genesis of New Markets: Effectual Transformations Versus Causal Search and selection
Questions from the Effectuation Conference June 6 & 7, Bodo Norway
Articles :
A Struggle Between Efficiency and Creativity at 3M
Another Man’s Treasure – The Agilyx Story
Beauty in Business
Business for Dummies – The Story of Mannequin Madness
Business Legs from Recycling Dregs
Chocolate Magic – The Story of Manon Chocolatier
Clean Start – Good Kaarma
Coffee Found or Coffee Made
Dead Ringer – The Story of 1-800-Autopsy
Delivering Entrepreneurship
Do You Need To Be A Risk Taker To Be An Entrepreneur?
Driving Backward
Driving the Future – The Story of Better Place
Entrepreneurial Distinction
Fail to Succeed – The Story of MGA Entertainment
How Great Entrepreneurs Think
Hunting with the pack – The Story of Baloo Patel
Ice Man Cometh – the Story of ICEHOTEL
Kauffman Foundation on Effectuation
Lessons from Expert Entrepreneurs for Entrepreneurship Policy Makers
Let the Music Speak – The Story of the Compact Disc
Loosen The Reins Without Losing Control
MBA’s vs. Entrepreneurs
Meyer
Milk without Cows?
Nature vs. Nurture: Are Entrepreneurs Born or are They Made?
Navigating a Sea of Potential Partners
New Ventures: The result is rarely the starting point
Persist Easy; Swerve Hard – The Story of EasyAuto
Pie in the Sky
Power in the Air – The Story of Powerkiss
Sending a Green Message
Surprise in a Glass – The Story of Innis & Gunn
The Accidental Entrepreneur
The Plunge Decision
U-Haul
Venturing Out? Start with What You Know – The Story of Boing Boing
