How to Control the Unpredictable Future through Entrepreneurial Action

How can the future be controlled according to Saras Sarasvathy?

A) Effectuation

B) Entrepreneurial action

C) Chaos theory

D) Creative destruction

Answer:

The correct answer is A) Effectuation.

Explanation: Effectuation is a concept developed by Saras Sarasvathy that suggests that while the future cannot be known with certainty, it can be controlled to a certain extent. It is a decision-making logic used by entrepreneurs to navigate uncertain and unpredictable situations.

The main idea behind Effectuation is that entrepreneurs focus on what they can control, such as their own skills, resources, and relationships, rather than trying to predict and react to external market conditions. It involves taking action and experimenting with different options to create opportunities rather than waiting for pre-determined opportunities to arise.

For example, an entrepreneur using Effectuation might start a small business by leveraging their existing network and resources, rather than seeking external funding or relying on market trends. They would focus on building a sustainable business model based on the resources they have at their disposal, rather than trying to predict and react to market fluctuations.

Effectuation empowers entrepreneurs to take control of their future by focusing on what they can influence and actively creating opportunities for success.