WHAT MAKES ENTERPRENUR

ENTERPRENEURAL?

Khalila rehman
03-122182-004  MBA 2 Years
 Differentiate between causal and effectual thinking
Causal reasoning means an entrepreneurs have their some goals and define which
choice and mean is better to attain certain goal while effectual reasoning is opposite o
causal reasoning. Effectual thinking leads an entrepreneur to bring creation and
identification to attain opportunity. It consist on decision making principles and
entrepreneur can easily forecast the employ in uncertainty. Effectual reasoning has
three principles: The affordable loss principle, the strategic partnership principle and the
leveraging contingencies principles.

The affordable loss principle:

The causal entrepreneur calculate the risk before investment while an effectual
entrepreneur observed what I have to loss in my hands, they observed future return and
market gain . An entrepreneur can reduce the risk of loss to observe what he or she
have to loose instead to think of certain project will be succeeded on not.

The strategic partnership principle:

In this principle as an entrepreneur mainly focused on their work instead of on their

competitors. Some wise entrepreneurs would prefer to go with partnership with their
competitors despite to waste money and time to compete with them. Both can gain
earning on capital. The affordable loss principle with strategic partnership principle is
dovetail for an entrepreneur to bring an idea with low cost in the market and decide with
your own analysis that where you have to end it.

Leveraging Contingencies principle:

The last principle express that effectual entrepreneurs are expert to take correct actions
in contingencies. They can easily turn their unexpected results in profits and have motto
of ready to fire aim. They not focused on their aim they just jump in every situation and
find their targets. Entrepreneur invent their creation that’s make opportunities for them in
existing market.
 Malik Riaz (An Enterprise of Bahria Town Ltd)

Malik Riaz is bright name in real estate community that was drop out from
school in matriculation and started work as clerk in any military office. He
don’t know how to do business strategically.

He jumped in real estate business with affordable loss principle. He is

effectual thinker who understand that how to takeout their self from
uncertain situation.

According to Dr. Ayesha "to think that he is defined by religiosity and

traditionalism, however, would be a mistake. His employees' profiles show
that he hires a lot of women, especially at the middle and senior
management levels, because he finds them "hard-working, efficient and
diligent".

Mr. Malik Riaz not started their business with competitive analysis because
there were not as such society in Pakistan who provides such kinds of
facilities to their customers as well to their employees.

Malik faced lot of cases filed by government of Pakistan to use the Pakistan
Navy name but he always follow leverage contingency principle and turn
unexpected situation in positive solution.