effectuation theory

Effectuation theory is a business approach that focuses on entrepreneurs starting with what they have—their resources, skills, and networks—and then shaping their ideas based on available opportunities. Instead of setting rigid plans and long-term goals from the start, effectuation emphasizes flexibility, experimentation, and adapting as new information or opportunities emerge. Entrepreneurs using effectuation are proactive about leveraging their current assets, forming partnerships, and remaining open to change, which helps lower risks and increases chances of success in uncertain environments.