Contemporary Management Issues in the 21st Century - Entrepreneurship, Effectuation and Causation

Contemporary
Management Issues In
The 21st Century

Table of Contents
INTRODUCTION ..........................................................................................................................3
TASK...............................................................................................................................................3
CONCLUSION ...............................................................................................................................6
REFERENCES................................................................................................................................7

INTRODUCTION
Entrepreneurship can be defined as business concept which focused on identify innovation and
creativity for a company. In current business situation, it is important part in emerging trend that
helps business enthusiast in order to find out necessary offering and services which provide
solution to existing demand and needs of market (Alobuia, Gillis and Kebebew, 2020). It helps
companies to provide a product in market which is creating demands in market place as it is
developed as per preference and requirement of customers. This essay consist precise analysation
of different aspect of entrepreneurship research which is considered by Saravethy in a
informative article which is name as Causation and Effectuation. It is also analyse highlight on
development of new business entities to traditional institution and units that is supported with
insightful organisational examples.
TASK
Entrepreneurship refers to ability as well as readiness of a person to develop, organisation and
run an enterprise with different uncertainties in order to make a profit. In this, main focus on
entrepreneur is on innovation, differentiation and creativity for purpose of providing product
with good quality which allow them to capture more market share (Althoff and Holguin, 2020).
There are different types of conflicting viewpoints, debate as well as arguments in business in
context of perspective and opinion of individual. In opinion of Sarasvathy, Effectuation and
Causation are the components that can be served as foundation for development of business
institution, unit and venture. Causation is a phenomena where there are different pre set effects
are provided to individual and among which they needs to select suitable driver which should be
taken into consideration by them for conducting operation. Effectuation on the other hand can be
characterised as a process where present drivers are facilitated to a person, they needs to select a
most apt effect which create favourable situation to them for purpose of specific function as well
as operation related to field of work.
Causation are most preferable in compare in effectuation in situation where entrepreneur needs
to emphasis on knowledge whereas effectuation are most suited in situation where entrepreneur
are preferring for capitalisation over opportunities. Causation is one of concept which helps
business managers for analysing predictabilities that is connected with uncertainties related to
future of business. It can be leads on basis of concept of competency of venture in order to