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

Essay

Introduction................................................................................................................................................................................................................................. 2
Main Body.................................................................................................................................................................................................................................... 3
Conclusion.................................................................................................................................................................................................................................... 6
References.................................................................................................................................................................................................................................... 6
Introduction
Entrepreneurship is a business concept which tends to explore creative and innovative means of running a business venture . In the current
scenario, entrepreneurship is an emerging trend which assists as well as supports business enthusiasts to come up with necessary offerings and
services which could solve an existing need or demand of the market (Arvidsson, Coudounaris and Arvidsson, 2020).The respective essay
entails a precise analysation of the key aspects of entrepreneurship research led by Sarasvathy in one of the very informative articles named as
“Causation and Effectuation”. It also highlights upon development of new business entities in comparison to the traditional units and institutions
supported by some insightful business examples.

Main Body
Entrepreneurship is a concept which promotes the idea of innovation, creativity and differentiation within the business practices by delivering
quality products and services within the market domain. It can be said that business insiders have diverse set of conflicting viewpoints,
arguments and debates in regard with their individual opinion and perspective of entrepreneurship. As per the perspective of Sarasvathy (2001),
Effectuation and causation are two of the main components which serves as the basis for formation of business unit, venture or
institution.Causation refers to a phenomena wherein the pre set effect is provided to an individual and they need to choose upon the most
appropriate driver or mean that they would like to take into consideration for facilitating their operations.Effectuation can be characterised as a
process wherein preset means are facilitated to an individual and they are required to select and choose the most apt effect which is favourable to
them in order to run a specific function or operation in their field of work.
Causation is more preferable if entrepreneurs would like to emphasize upon knowledge whereas effectuation is more profitable if entrepreneurs
would prefer to capitalise upon opportunities. Causation helps to analyze the predictabilities which lies within an uncertain business future. It
leads upon the concept that the competency of a venture to control an uncertain event is dependent upon the ability of the same to predict that
particular event. Effectuation is helpful in identifying the aspects which can be controlled in an uncertain and unpredictable future event. It
follows an assertive approach which reflects upon the idea that the degree to which and enterprise is able to control it’s environment and
surroundings is the extent to which it will be able to cope up with the uncertain future which lies ahead of the same.
Every given entrepreneurial venture has its own set of policy, procedure, base, value that it likes to adopt in order to sustain and survive in the
marketplace. There are entrepreneurial ventures which are based upon effectuation and there are some which opts for causation. It simply
depends upon the mindset and skill set of the entrepreneur in consideration with how they would like to operate the business ( Bagheri, Newman
and Eva, 2020). In the earlier times, the entrepreneurship was a very untapped concept and individual did not attempt to explore it as much as it
is done today because they were not eager to take the necessary risks with their businesses. The firms use to choose causation method more often
for setting up and operating their business organization. But with the changing times, entrepreneurs have become more resilient, confident and