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Effectual Entrepreneurship

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Table of Contents

Part I: I want to be an entrepreneur but... 1. Entrepreneurs are visionaries 2. I don't have a good idea 3. Entrepreneurs are risk takers 4. I don't have enough money 5. Entrepreneurs are better at forecasting 6. I don't know where to start 7. Entrepreneurs are not like the rest of us 8. I'm human, I'm afraid of failing Part II: The nuts and bolts of venturing: Effectuation in action 9. The bird-in-hand principle: Start with what you have 10. Worldmaking: Understand transformation techniques 11. The affordable loss principle: Bootstrap 12. Financing: Understand resources 13. The crazy quilt principle: Form partnerships 14. Ownership and control: Understand equity 15. The lemonade principle: Leverage surprises 16. Business plans and business models: Understand pitches 17. Brand, marketing and identity in a new venture: Understand mindspace 18. The pilot-on-the-plane principle: Non-predictive control Part III: I am an entrepreneur now: How far can I go ? 19. When the venture grows up 20. Beyond the for-profit firm Conclusion: Entrepreneurship as technology

About the Author

Stuart Read is a Professor of Marketing at IMD. Saras Sarasvathy is the Isadore Horween Research Associate Professor at The Darden School, University of Virginia. Nick Dew is an Associate Professor of Strategic Management in the Graduate School of Business and Public Policy at the Naval Postgraduate School. Robert Wiltbank is an Associate Professor of Strategic Management at the Atkinson School of Management, Willamette University. Anne-Valerie Ohlsson is an independent writer, researcher, and creator.


*SHORTLISTED in the textbook category for the Chartered Institute of Management's Book of the Year Prize, 2011-12* 'Entrepreneurship is the most powerful tool we have for economic and social value creation and this book is destined to be recognized as the secret weapon all entrepreneurship educators have been waiting for! An accessible and comprehensive guide for all who aspire to both make and find opportunities. Bravo!' - Len Schlesinger, President, Babson College, USA 'A pragmatic, comprehensive book on entrepreneurship that talks about the key aspects and principles for establishing and sustaining a successful business' - Businessworld 'A first-class entrepreneurship education tool' - Georgios A. Panos, Journal of General Management 'This work has been absolutely instrumental in the development and continued growth of our company. We apply the 5 principles of effectuation everyday at Forgetful Gentleman. If you've ever thought of being an entrepreneur, this book will literally change your life.' - Nathan Tan, Co-Founder, Forgetful Gentleman, Darden MBA '09 'In offering a foil to the start-up myth, the authors reach an important conclusion: entrepreneurial success is not innate - it can be taught. The lessons in this book teach burgeoning entrepreneurs how to abandon doomed business models with ease, how to turn promising ideas into profitable businesses, and how to excel in inevitable uncertainty. There is the entrepreneurial story we know: the garage office, the risk-junkie founders, the midnight stroke of genius, the millions in VC funding and then there's this book, which changes it all.' - Ashleigh Williams, Entrepreneur, MBA graduate, Atkinson Graduate School of Management, Willamette University 'This is an inspiring and aspiring book based on practical experience, informed by different theories and schools of thought.aIt is very accessible to a wide range of audiences, from students to intrapreneurs.' - George Lodorfos, Director of Undergraduate Programmes, Leeds Metropolitan University, UK 'Paulo Coelho said "We all know fear. But passion makes us fearless" - the passion can be a hobby, an idea, a desire to change the world or entrepreneurship itself. This book is all about getting you to a point where fear becomes powerless to stop you from acting on your passion.' - Jerry Nemorin, Founder of LendStreet 'An entrepreneurial blueprint for those who don't like blueprints. The authors have distilled the essence of entrepreneurship in a new and vital way. Anyone who wants to know what matters to the global and local economies of tomorrow should read this book.' - Jim Zuffoletti, co-founder of OpenQ 'I consider this book to be the Bible for entrepreneurs. Sarasvathy has taken the mystery out of entrepreneurship and given us a set of principles to follow on our long and winding journey of creating new ventures.' - Brett Nicol, co-founder of Forgetful Gentleman 'An inspiring book! The principles of 'effectuation' puts in to words what I've been attempting to do in my company. The down to earth examples and the road maps encourage me to say 'yes, I can!' - Scott Weaver, CEO of CSD Nano, Willamette University MBA 'I knew that effectuation was a game changer as I witnessed my sixty MBA classmates fight and squirm to digest the material; this topic isn't for those wanting some gentle stretching - it's a majestic contrast to the typical MBA way of thinking. As someone who already exhibited entrepreneurial tendency, effectuation provided an indispensable framework that organized and explained my previously chaotic yet intrinsic style of thinking.' - Ian Ayers, Co-Founder of Nova Global, Founder of Happy Rickshaw and CTO of LightWind Energy

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