Professor Saras D. Sarasvathy explains what is meant by the term “effectuation”, how it is related to entrepreneurship. She describes it as the lessons learnt by expert entrepreneurs. Expert entrepreneurs are not marked by their success, rather, what distinguishes them from the rest is the journey that have faced in entrepreneurship. It is ranging from failure to success and the lessons and insights that they have gained along the way. Hence what is Effectuation and its relation to Entrepreneurship.
Here Prof Saras and Prathibha Sastry discuss about the laws governing what is effectuation. Also what are some of the examples of effectuation. How can the entrepreneurs leverage these laws and build successful businesses. This video begins answering the question what is effectuation?
These lessons help such entrepreneurs develop new modes of thinking as well as new techniques and approaches. That, which do not rely on predicting the future, but focus instead on creating the future or a particular outcome. How by working with those forces and details that are actually within our control. They are, thus, experts in techniques of non-predictive control.
According to her bio on the website of Darden University – Professor is a member of the Strategy, Entrepreneurship and Ethics area. In addition to MBA and doctoral courses in entrepreneurship at Darden, she teaches in doctoral programs in Europe, Asia, Latin America and Africa. In 2007, Sarasvathy was named one of the top 18 entrepreneurship professors by Fortune Small Business magazine.
Universities around the world recognize her contributions to entrepreneurship research and education by awarding her the following professorships:
- Jamuna Raghavan Chair at the Indian Institute of Management, Bangalore
- University Chair from Nankai University in Tianjin, China
- Jubilee professorship from Chalmers University in Gothenburg, Sweden.