Analysis of the Effectuation Model in Entrepreneurial Theory
- Miguel Virgen, PhD Student in Business
- Jan 24
- 4 min read
Entrepreneurship unfolds in environments characterized by uncertainty rather than calculable risk. Traditional strategic and economic models assume that entrepreneurs identify opportunities, forecast markets, and allocate resources to maximize expected returns. These assumptions, however, are often misaligned with the lived realities of entrepreneurial practice. The Effectuation Model, developed by Saras D. Sarasvathy, offers a fundamentally different explanation of entrepreneurial behavior. At a doctoral level, effectuation should be understood not merely as a set of heuristics but as a distinct logic of action that challenges predictive, planning-oriented approaches to entrepreneurship.
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