Causation And Effectuation Entrepreneurial Decision Making

a.) Choice – The power to choose is a fundamental concept of an entrepreneur’s life. Our environment can affect the choices we make. We tend to respond to our circumstance by choosing the way by which we respond. One can choose to give a positive or a negative response to their environment. The choice we make is what determines the outcome of our lives. “The mark you make today will show up tomorrow”.

A person who starts a business is someone who assumes the financial risk of the initiation, the operation, and management of the business. ,“An entrepreneur is someone who organizes a business venture and assumes the risk for it”. (Define an Entrepreneur, Source: H) A person who has possession of a new enterprise, or “idea and assumes significant accountability for the inherent risks and the outcome” (Source: H) can be known as an entrepreneur. “The term is originally a loanword from French and was first defined by the Irish economist Richard Cantillon.” (Define an Entrepreneur, Source: H) “Entrepreneur in English is a term applied to the type of personality who is willing to take upon her

entrepreneurialism, innovation, development and exploration, and provide accountability and control systems commensurate with the risks involved.

Either the company is able to make those changes or it will not make it very far

Slowly he became market leader for that product. Entrepreneurship has been defined by several researchers as the progression of making a product or service valuable by gathering a distinctive set of resources and opportunities. This procedure comprises the set of accomplishments to recognise opportunities, business classification, evaluation and obtaining the essential resources, management and getting positive results. Furthermore, entrepreneurship has been seen as an organizational coordination that underlines the three extents: innovation, taking calculated risks and proactive orientation. There are many indications to provision the idea that the businesses which were engaged in entrepreneurial practices have been most effective and successful (Hills, Hultman & Miles, 2008).

Background The Entrepreneurial Approach - Entrepreneurship is from a French word meaning "a person who undertakes innovations and risks in business in an effort to transform ideas into economic goods." In modern business jargon, it has become more of a description of a mind-set, one who will take risks in order to result in gain; one who will use the spirit of innovation and throw off the shackles of "rules" to success in whatever organization that may be (Searching for the Invisible Man, 2006)

An Entrepreneur decides his future, time, happiness, duties and a whole lot of others. An Entrepreneur will use his imagination and come up with a way to implement his ideas even when others say it doesn't matter, planning, design, deployment and measurement are all subsequent to research. And, in the beginning of everything is the creation of the core product in its raw form a marketing skill. Most people don't understand that without marketing you do not have a product, or a service or a solution to sell.

In the third case, the idea of causation removes power of choice. A person may decide on a certain action, but according to causation, the individual acts respectively

I found that causation was harder to prove. I believe causation is harder to prove because you need to find a relationship between variables, that one thing depends on the other. Like the book says, it is easier to say two things are correlated because it just means that we observe a change in both things. Causality is also harder to prove because it is more complex. In causality, you have to have correlation in it, time order, and ruling out alternative explanations. Another reason why causality is more complicated is because there can be reverse causality. Reverse causality is what it sounds like, the book does the comparison by saying, "you think A is causing B, when in fact, B is causing A". Like stated above, causality has to have a time order involved, and in reverse causality it becomes very important because you have to know what comes before the

For instance Myesha quickly realized that Law was not for her. She considered dropping out of the University as she had gotten involved with a spoken word group around this time. As a result, her stepfather threatened to stop supporting her if she dropped out and this placed a strain on family relationships. These are all factors of cause and effect, which are influencing each other.

For this there are a number of factors influencing entrepreneurship. Samiti (2006), Tan (2000) classified the key factors that affect entrepreneurs in to two broad categories namely economic and social.

This school sees strategy formation as a visionary process and is fell under the descriptive school of strategic management. The chief architect of the strategy is the CEO of a company. This school took formal leadership seriously and CEO is responsible for strategy formulation. It stressed on mental state and processes such as instinctive knowledge, belief, wisdom, experience and insight of a single leader. The leader should be visionary in formulating strategy. The entrepreneurial school promotes strategy as a process which has a clear image and sense of direction which can be termed as a vision. Entrepreneurial strategy often occurs in startup companies and organizations in trouble and needing a

This book will help you to understand the process of setting up a small business,

Concepts of taking risks have regularly been associated with behavioural characteristics of an entrepreneur. A study on intention of nascent entrepreneurs, Caliendo et al (2009) discovered individuals who are less risk adverse tends to enter self-employment but this only applies for those leaving regular employment. Risk attitudes however, do not affect the decision process for those moving away from inactivity or unemployment.

There are two sides to every debate, and the "what makes an entrepreneur" argument has raged for decades with neither side able to conclusively prove their case. There are many who believe that an entrepreneur must possess personality traits such as vision, passion and drive that are innate and cannot be taught. Others argue that the skills of evaluating opportunities, motivating people and operating a business are easily passed on to eager students looking to be entrepreneurs. The truth is that both sides are right and it's time for a compromise: Entrepreneurs are born and made. Some people may be natural entrepreneurs and immediately open a business, others will have studied and