CAOT 31 Lecture 10:
11 Oct 2020
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Document Summary
S4-esbm: effectuation & entrepreneurship extra chapter - sarasvathy: entrepreneurial expertise. Effectual logic/effectuation: distinctive style and logic of decision making. Conventional belief: to the extent we can predict the future, we can control it. Expert entrepreneurs: to the extent you can control it, you do need to predict it. 2. 1 the three types of uncertainty: known distribution with unknown draw (eg 50 red balls, 50 green balls, unknown distribution with unknown draw (eg unknown number of different coloured balls, unknowable distribution (eg all kinds of random objects) For 3), it is impossible to predict future, thus need to figure out ways to create or co-create with other people with means at hand: the five principles of effecutation. 3. 2 the affordable loss principle: conventional approach: pick venture with best expected return, effectual entrepreneur approach: invest only what they can afford to lose & just do it".
