Coined the term “flow” and is a Hungarian psychology
Mihaly Csikszentmihalyi
The experience of getting immersed on a task
Flow
The idea that the future is unpredictable yet controllable
Effectuation
What principle states that entrepreneurs starts with their means when seeking to build a new venture
Bird-in-hand principle
What are the three categories for the mean in the bird-in-hand principle
Who I am
What I know
Who I know
Maximizing returns by selecting the optimal strategy for your target. They think in this principle rather than expected returns
Affordable loss principle
They decide what they are willing to lose rather than what they expect to make
Affordable loss
The focus on building partnerships rather than beating competitors
Crazy quilt principle
The ability to turn the unexpected into a into the profitable
Lemonade principle
Enables entrepreneurs to work on things they think are important and set their own schedules and work with whom they want to work
Control
An enormous amount of human behavior related to control striving
Pilot in the plane principle
Defines that effectuation isn’t a static, one-time exercise
Effectual cycle
They:
-prefer process over people
-desire to solve problems efficiently
-fear losing control
-prioritize PROCESS
The maker
They:
-Desire capitalization on opportunities
-fear losing money
-prioritize profit
The merchant
They:
-Desire to innovate
-Fear to run out of CREATIVE ideas
-prioritize IDEAS
The magician
They:
-desire to help OTHERS
-Fear conflicts
-Prioritize PEOPLE
Mobilizer
They:
-desire to be an EXPERT
-Fear being AVERAGE
-Prioritize KNOWLEDGE
The master
