Topic 2: The entrepreneurship method

The Entrepreneurial Method mainly consists of five effectual principles.

Start with your means: When creating a new venture you should start with your available means and find out: who are you, what do you know and whom do you know. With the answers one is able to start to imagine different possibilities and outcomes that originate from the means. It is important to not just focus on one specific goal, but to be open for new possibilities and opportunities.

Focus on affordable loss: Define your affordable loss. Especially in early stages of your venture it is much more reasonable to limit the downside potential rather than to focus on possible returns. However, always define your affordable loss in advance to protect yourself from potential cognitive biases during the project.

Form partnerships: Cooperation with interested stakeholders lowers uncertainty. Partnerships can help create new markets together with people who have synergies. This can also reduce risks on both sides..

Leverage contingencies: Seemingly bad surprises and unexpected turns are not always bad. It is important to see them as new opportunities. These experiences can be more valuable than you might think. In fact, many of the most successful ventures were the result of another failed project or a coincidence.

Control the future: Focus on activities that lie within your control. If you spend too much time worrying about what might or could happen to your venture, you give up control. Concentrate your efforts on what you can influence to reach your goals one at a time. In other words, if you control the future you do not have to predict it.

Illustration taken from: Entrepreneurship : the practice and mindset, by Heidi M. Neck, Christopher P. Neck and Emma L. Murray; Sage Publishing, 2020
  • Activity
  1. Write your impact statements that will guide you through their entrepreneurial journey.
  2. Start with the means at hand
  3. What’s the idea – how can you make an impact today with the means at hand?
  4. You need to detail the resources you have available and the loss you can accept in the beginning.