ECON 1 Lecture 6:
Document Summary
Researchers began turning their attention to what entrepreneurs actually do, rather than focusing exclusively on who they are. The more experienced an entrepreneur is, the more likely he or she is to use effectual logic in the start-up phase of a new venture. 8. 4 non-predictive control: the logic of effectuation. Three kinds of uncertainty: know distribution with an unknown draw, unknown distribution with unknown draw, unknowable distribution impossible to predict. In general, expert entrepreneurs do not believe in trying to predict the future. Instead, they prefer to (co-)create the future to the extent possible with people who self- select into the process by making specific commitments to the project at hand. Note: all principles are logically intertwined and can be quickly applied to take action! 8. 6 dynamics of effectuation in start-up process. Expert entrepreneurs do learn persistence in the face of negative feedback, but the persistence here is not tied to their preset goals or personal visions like visionary entrepreneurs.
