Strategy and entrepreneurship: decision and creation under uncertainty

Abstract

This work looks at the decision process of entrepreneurs when they create a new businessin an atmosphere of uncertainty and without clear objectives, using the notion of 'effectuation'. The effectualapproach suggests that, when a new company is just beginning, entrepreneurs emphasize howmuch they can afford to lose and try as many different strategies and combinations of resource as possible,given the resources that are already under their control. The objective of this article, therefore, is toexamine if, and to what extent, entrepreneurs build companies in the real world using effectuation.