Customer Reviews

Effectuation: Elements of Entrepreneurial Expertise (New Horizons in Entrepreneurship series)

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This is an extraordinary book, the impact of which may not be recognized for a while. As an entrepreneur and teacher of entrepreneurship at the college level, I believe that there are two reasons why anyone interested in entrepreneurship (or how people behave and make decisions under conditions of uncertainty) should read this book. First, it provides an astute observation of what expert entrepreneurs actually do. Although we sense the way we make decisions and act, it's fascinating to see this behavior put into words. Second, by understanding part of the process better, we can begin to think about its implications, such as how to be even more effective.

Make no mistake about it, this book is NOT casual reading. Nor is it a textbook or practical guide to building an entrepreneurial venture. It is an academic treatise that explains many years of research, including the author's initial interest and rationale for pursuing this line of research, historical perspectives, design of the studies, interpretation of the data, and ultimately her final observations about how expert entrepreneurs (EEs) behave. For example:

*EEs start with a given set of means, rather than a predetermined goal, allowing opportunities to emerge

*EEs focus on spending what they can afford to lose, rather than seeking to optimize financial returns

*EEs don't think about competition; instead they work with customers and partners to fabricate a market

There's a tremendous amount of detail and information in the book that discusses how expert entrepreneurs behave. Beyond these individuals, I'm hopeful that the message of the book will have implications for other individuals and organizations, including corporations and governments, that often work under conditions of Knightian uncertainty but may not recognize or acknowledge this (if only because they don't know what to do in such situations). This book provides lessons and ideas that can help every individual and organization to be more effective.

Steven K. Gold

Senior Partner for Entrepreneurship, Franklin W. Olin College of Engineering

Author of Entrepreneur's Notebook: Practical Advice for Starting a New Business Venture

This book not only clearly summarizes research on expert entrepreneurs and effectual logics, but also lays the foundations for whole new areas of inquiry in business.

A must read for researchers, entrepreneurs and innovators alike.