Effectual Entrepreneurship

Toiminnallinen yrittäjyys

Satakunnan ammattikorkeakoulu | Palveluliiketoiminta

Satakunta University of Applied Sciences | Faculty of Service Business
Sarasvathy 5 Principles

Satakunnan ammattikorkeakoulu | Palveluliiketoiminta

Satakunta University of Applied Sciences | Faculty of Service Business
 1) Bird-in-Hand Principle:
Start with your means
– Don’t wait for perfect opportunity
– Start with your own means:
– Who you are –your traits, tastes and abilities
– What you know –your education, expertise and
experience
– Who you know –your social network and
professional network

http://www.youtube.com/watch?v=DnGrcCVG8TE&fea
ture=player_embedded&noredirect=1

Satakunnan ammattikorkeakoulu | Palveluliiketoiminta

Satakunta University of Applied Sciences | Faculty of Service Business
 2) Affordable Loss Principle:
focus on downside
- Expert entrepreneurs limit risk by understanding
what they can afford to lose at each step, instead
of seeking large all-or- nothing opportunities
- They choose goals and actions where there is
upside even if the downside ends up happening.

http://www.youtube.com/watch?v=XWLBrj2lLoA&fe
ature=relmfu

Satakunnan ammattikorkeakoulu | Palveluliiketoiminta

Satakunta University of Applied Sciences | Faculty of Service Business
 2) Affordable Loss Principle
(Siedettävän menetyksen periaate):

Consider:
1) How much does it take/demand to start your
business?
2) How much are you capable and ready to lose?

• Always pay close attention to cash flow and

sales!

Satakunnan ammattikorkeakoulu | Palveluliiketoiminta

Satakunta University of Applied Sciences | Faculty of Service Business
 3)Patchwork Quilt (Form
Partnerships – networking):

• Form partnerships with people and organizations

that are ready to help you develop the future with
you
• Do not worry too much about competitive analyses
and strategic plans
• Via partnerships resources, competencies and
networks increase

Satakunnan ammattikorkeakoulu | Palveluliiketoiminta

Satakunta University of Applied Sciences | Faculty of Service Business
 4) Limonade (Leverage
Contingencies):

• Take advantage of uncertainty

Satakunnan ammattikorkeakoulu | Palveluliiketoiminta

Satakunta University of Applied Sciences | Faculty of Service Business
 4) Limonade Principle:

Video Limonade Principle

• https://www.youtube.com/watch?v=jXE_eMjGb7o

Satakunnan ammattikorkeakoulu | Palveluliiketoiminta

Satakunta University of Applied Sciences | Faculty of Service Business
 4) Limonade Principle:

• Look for something beneficial from surprises, look

for opportunities (clues to create new markets)
• Embrace surprises with open arms, do not restrict
yourself to existing goals and objectives
• Keep flexible

Satakunnan ammattikorkeakoulu | Palveluliiketoiminta

Satakunta University of Applied Sciences | Faculty of Service Business
 5) Pilot-in-the-plane Principle:

• Manage the unpredictable

Satakunnan ammattikorkeakoulu | Palveluliiketoiminta

Satakunta University of Applied Sciences | Faculty of Service Business
 5) Pilot-in-the-plane Principle :

• There is not one perfect way to build a business

• Build / create your own future together with others
• The future is built based upon today’s choices
• Focus efforts on those factors that are within your
control

Satakunnan ammattikorkeakoulu | Palveluliiketoiminta

Satakunta University of Applied Sciences | Faculty of Service Business
 Effectuation Summary

Case - Icehotel
http://www.youtube.com/watch?v=xbgNP4YCqEQ&feature=relmfu

Saras Sarasvathyn interview

http://www.youtube.com/watch?v=4xBTV00MePY

In a Nutshell
Effectuation (link provided earlier)

http://www.youtube.com/watch?v=0GEqdsCHt-g

Satakunnan ammattikorkeakoulu | Palveluliiketoiminta

Satakunta University of Applied Sciences | Faculty of Service Business