I came across this highly interesting paper which tries to uncover what exactly it is that makes entrepreneurs entrepreneurial ? Can ‘entrepreneurial thinking’ be taught or successfully applied across all domains ?
As part of the research, the author identifies a set of principles, which he calls ‘Effectual reasoning’, that establish the existence of a form of rationality, which we call ‘entrepreneurial’.
A few excerpts from the paper:
The word ‘effectual’ is inverse
of the word ‘casual’. In general, in MBA programs across the world, students are taught causal or predictive reasoning – in every functional area of business. Causal rationality beings with a pre-determined goal and a given set of means, and seeks to identify the optimal – fastest, cheapest, most efficient etc. – alternative to achieve the goal. The make-vs-buy decision in production, or choosing the target market with the highest potential return in marketing, or picking a portfolio with the lowest risk in finance, or even hiring the best person for the job in human resources management, are all examples of causal reasoning.
Effectual reasoning, however, does not begin with a specific goal. Instead, it begins with a given set of means and allows goals to emerge contingently over time from the varied imagination and diverse aspirations of the founders and the people they interact with.
The author then illustrates the difference between the two with an example of cooking:
A chef who is given a specific menu and has only to pick out his favorite recipes for the items on the menu, shop for ingredients and cook the meal in their own well-equipped kitchens is an example of causal reasoning. An example of effectual reasoning would involve a chef who is not given a menu in advance, and is escorted to a strange kitchen where he or she has to explore the cupboards for unspecified ingredients and cook a meal with them.
I would highly encourage you to give it a read when you get a chance.
I am a regular “reader” of your site. Now I thought, its high time to thank you.:)
As a student, it helps me to gain lot of additional knowledge, thanks a ton
“What makes entrepreneur entrepreneurial”
I must really say, this piece of article was amazing, this showed me a good insight on the “Entrepreneurial journey”.
Keep up your good work, people like me are rewarded at the end
Regards.
Guru
Good article. Talks about the limitation of rational thinking when it comes to entrepreneurship. Cheers!
I don’t think entrepreneurship can be taught. ‘Entrepreneurial’ is more to do with the desire to do something on their own, to do something new. And this cannot be taught.
What can be taught in class is the resources/methods available if the “desire/want” is already there.
My view is that the class room coaching (teaching) is a seedling process.
The germination depends on the soil / climate. While some germinate on the next day, some won’t for the life time.
Any way, thanks for the interesting post
Bala
http://www.vittbi.com
@Devakishor
entrepreneurship cant be taught. but values pertaining to entrepreneurship like risk taking, thinking out of the box etc are somethings that can be encouraged from a young age — and that can help mould the thinking – outlook of a person.
Methinks someone from the Indian go-getter / entrepreneur community should write a blog or two on the following topics – myself not knowledgeable or wise enough for the same, hence the minor contribution here.
1. After BCOM, BSC, BA what next?
2. What do you think about freerice and scrabulous?
3. Which sector is next big sector? Bioengineering?
4. What is new in biotech?
5. How much time spent between passing and first job?
6. How much start salary per industry
7. How much scope for increment?
8. Corporate ethics laws required?
9. Team building versus divide-and-rule sweatshop policy
10. How to create jobs in XYZ sector
11. how to improve education system
12. how to handle web information
13. how to use internet for education
14. how to start startups
15. how to get VC funding
16. how to shape the BS course
17. what problems do job seekers face
18. how to make getting first job easy
19. how to introduce microfinance
20. how to make setting up of tech companies easier
21. is charging of ITES-BPO training too high
22. how to make cheap training available
23. how to take IT to rural india or class B, C towns
24. how to make content into indian languages
25. is there use of such translation?
26. What improvements in exam system?
27. What improvements in college projects system
28. what improvements in college-industry cooperation
29. which companies should take first steps in adopting universities
30. what rules should be made for direct entry from intern to employee
31. what value should tests and profiling have in selection rejection
32. should there be bond
33. working from home – is it feasible
34. ways to change the world?
35. Polls, polls and polls
36. Value of MIT OCW for job selection?
37. Value of opensource and wikipedia for knowledge
38. specialised portals for knowledge in various job sectors like Finance, commerce, IT, ITES, BPO…..
39. Indigenous mechanical innovation – farming/clean energy and integrated devices and tools
40. green design for vehicles?
41. Green architecture
42. Use of smart phones and UMPCs for educational content – like podcasts and videos?
Feel free to moedrate comment, no issues, but kindly do not nuke it totally
Team building is really necessary for a very successful implementation of business plans.`,”
i love team building activities because it enhances my skills in business~:’
team building is always needed wether you are in a corporate world or just want to promote more synergy in a group’;-
team building is essential for the success of any company and work group. we always do some team building at least 4 times a ye”,,
Thank youfor this valuable information and wonderful read!! I definitely enjoying every little bit of it and I have you bookmarked to check out new stuff your upcoming blog posts…