Read the summary and the most important questions on Principles of Entrepeneurship

• 1 Week 1: Effectuation

• 1.1 Lecture 1A and B - Principles of Entrepreneurship and Effectuation

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• What are 2 important facts about pursuit?

  • Most successful start-ups are teams 
    
  • Research: you can learn it. 

• What are the 5 princepless of effectual reasoning? -  Sarasvathy's principles

  • Bird in hand principle 
    
  • Affordable loss principle 
  • Crazy quilt principle 
  • Lemonade principle 
  • Pilot in the plan principle 

• How do you prepare for dinner? Causation vs Effectuation

  • Causation: plan for results and do groceries accordingly 
    
  • Effectuation: See what is in your fridge and make results  

• Causal (managerial) versus effectual (Entrepreneurial) reasoning. What is the difference and what overlaps?

  • C: Selecting between given means to reach a pre-defined goal
    
  • E: Imagining a possible end using a given set of means
  • Varies between situations, often combined
  • Less uncertainty allows for more causal thinking 

• What is the 'Bird in hand principle'?

  
  

  • Who am I? What do I know? Who do I know?
    
  • Check your means and look at which next action you can do best
    
  • Contrasts with: pre-set goals and opportunities
    
  • Beer knowledge about gardening 

• What is 'Affordable loss principle'?

  • What are you willing to lose in order to get to the next step?
    
  • Contrasts with: expected returns 
    

• What is the ' Crazy quilt principle'?

  • Create an alliance of people that form a committed partnership; Co-creation 
    
  • Contrasts with:  Competitive analysis 

• What is the ' Lemonade principle' ?

  • Contingencies are turned into benefits 
    
  • Embrace surprises instead of focusing on what-if scenarios and worst-case scenarios 
  • Contrasts: avoiding surprises 

• What is the ' Pilot in the place principle' ?

  • Prediction versus control 
  • Focus on activities within your control; Control the controllable 
  • Contracts with: the inevitable trends in the market.  
    

• Wrap up: Effectuation theory: What it is and what it isn't

  • IS: A way of thinking, a set of heuristics, doing the do-able, how to get the sellable products and services established
    
  • IS NOT:  a system to tell you what to do, an algorithm, 'not planning', a way to launch an entire business