
Effectual Reasoning: What Makes Entrepreneurs Entrepreneurial? (2008) [pdf] - wallflower
http://www.effectuation.org/sites/default/files/research_papers/what-makes-entrepreneurs-entrepreneurial-sarasvathy_0.pdf
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lrmunoz
The effectuation theory is like an epiphany. To me it explains very well the
sometimes counterintuitive elements of entrepreneurship. I wonder why this
doesn't come up more in HN (in fact it's the first time I see it in the front
page). I guess it's too academic compared to for instance the Lean Startup
principles.

Shameless plug: If you want a non-academic summary of the theory, a few months
ago I wrote about it in my (former) company's blog:
[https://www.codelitt.com/blog/5-principles-of-successful-
ent...](https://www.codelitt.com/blog/5-principles-of-successful-
entrepreneurship/)

~~~
dilemma
I actually think lean startup is more academic than effectuation theory
because the former can be clearly defined while the latter cannot. Hence why
one of them is popular and the other not

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nemild
Vinod Khosla (Sun Microsystems, Khosla Ventures) is a big fan of this piece.
You can see his version here (has his notes in the margin):

[http://www.khoslaventures.com/wp-
content/uploads/What_makes_...](http://www.khoslaventures.com/wp-
content/uploads/What_makes_entrepreneurs_entrepreneurial.pdf)

As someone who's done a few entrepreneurial ventures and also has an MBA, the
causal reasoning is indeed the default in most MBA programs.

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jasode
If this paper's differentiation of (1) effectual, (2) strategic, (3)
managerial ... is interesting to you, another similar piece used the metaphor
of commandos, infantry and police:

[https://blog.codinghorror.com/commandos-infantry-and-
police/](https://blog.codinghorror.com/commandos-infantry-and-police/)

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jgeada
Realistically, what makes most entrepreneurs entrepreneurial is a reliable
safety net provided by personal money. It is easy(ier) to take risks when your
health care, housing, food and the other basis of survival do not depend on
guaranteed success.

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dnh44
For what it's worth I kind of disagree based on personal experience. I'm
quickly nearing the age of 40 and never had a real job. Being poor combined
with the fear of failure has always been a great motivator for both
productivity and creativity.

A lack of responsibility does more to make it easier to take risks than does
having money. It's pretty easy for a single healthy person to earn enough
money to survive if it all goes wrong. It's a lot harder if that person has
other people depending on them for survival.

But surely if one has family to look after money is a requirement to take that
kind of risk.

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bjornsing
TLDR: Sort of the academic version of the old saying "Big companies play
chess, startups play poker."

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contingencies
TLDR: _The easiest way to predict the future is to build it._ ... and
entrepreneurs believe in building it.

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albertTJames
Too bad it was not controlled with regular non-entrepreneurs folks. Hard to
prove this test allow to separate entrepreneurial and non-entrepreneurial
mindset, rather than prove that there is not much mindset variability among
entrepreneurs about those particular 17 pages questions.

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leroy_masochist
This is really good, I feel almost angry that it was published nine years ago
and I just read it for the first time.

