Interesting second video during which IMD Professor Stuart Read argues that managerial principles, models and theories learnt in business Schools may not enable entrepreneurship and support an entrepreneurial spirit but hinder it instead… Why? Because they overlook the personal dimension of most new ventures started off by a single individual as a personal project .
Here are some of the common questions an entrepreneur would go through when considering a new venture:
- How much time and money am I ready to invest into it (no matter how compelling the business case may be)? If things do not play out as well as I anticipated, how much am I willing to lose personally?
- How can I make the best use of what I already have and the people I already know?
- Whom do I know in my surrounding that will want to put some skin in that venture with me?
Presented that way, it becomes a lot clearer why you do not need to hold a MBA to be a successful serial or expert entrepreneur. We often believe that successful entrepreneurs had a brilliant idea, which they were able to turn into a successful business. What we tend to forget is that very often the ultimately successful business had in reality very little to do with the original idea. What made the venture a success was actually less the original idea itself than the discovery and development process that the entrepreneur had to go through in order to do something with his idea.
That’s the fundamental principle embedded into “Effectuation”: Having an idea and doing something with it !