The barriers and the high degree of uncertainty that entrepreneurs face, demands making choices to reduce this uncertainty. "Effectuation" is an entrepreneurship theory, a logic and a method developed by Dr. Saras D. Sarasvathy to help the entrepreneurs in this process. Effectuation claims that entrepreneurs, who are forced to make choices under uncertainty, make choices based on a different logic than the standard business logic and tools (Society for Effectual Action in 2016).
Norwegian Centre for Multicultural Value Creation has experienced that the business development process for many multicultural entrepreneurs often correspond to Effectuation logic. A different logic for business development process requires a different way of thinking and working. By meeting the entrepreneurs where they are, and leading them through an effectuation process, we can help them build more sustainable businesses while entering unknown markets.
Dr. Saras D. Sarasvathy’s logic and method can best be illustrated by looking at a typical process of making food. You have two options; either you can find a recipe for a dish, make a list of what you need and go to the grocery store to buy the ingredients. The other option is that you open the refrigerator, see what you have there and make a dish based on what you already have. The latter option is the method called Effectuation by Dr. Sarasvathy. This is also the logic used by Norwegian Center for Value Creation when advising the multicultural entrepreneurs. This is the method that helps entrepreneurs to utilize their full potential and talents, when it comes to education, work experience, personal situation and their motivation.