Inc magazine has a good article on how entrepreneurs think. What makes them tick? How do they frame problems? One problem entrepreneurs have is that they think they are at the top of a very long learning curve. The Polsky Center and other entrepreneur programs at colleges across the US a trying to help them start further down the learning curve. Decision making is a crucial part of that descent.
How Do Entrepreneurs Think?
From the article:
“Sarasvathy concluded that master entrepreneurs rely on what she calls effectual reasoning. Brilliant improvisers, the entrepreneurs don’t start out with concrete goals. Instead, they constantly assess how to use their personal strengths and whatever resources they have at hand to develop goals on the fly, while creatively reacting to contingencies. By contrast, corporate executives—those in the study group were also enormously successful in their chosen field—use causal reasoning. They set a goal and diligently seek the best ways to achieve it. Early indications suggest the rookie company founders are spread all across the effectual-to-causal scale. But those who grew up around family businesses will more likely swing effectual, while those with M.B.A.’s display a causal bent. Not surprisingly, angels and seasoned VCs think much more like expert entrepreneurs than do novice investors.”
Click the link at the top and read the whole thing.