Causal Executives Vs. ‘Effectual’ Entrepreneurs

Zuloaga ImatgeArtículos, Blog English, Fran ChuánLeave a Comment

The differences between executives and entrepreneurs are found in the executives’ causal reasoning versus the entrepreneurs’ ‘effectual’ reasoning.


The causal reasoning starts with a predetermined goal and a series of concrete resources from where it tries to identify the optimal alternative –the fastest, the cheapest, the most efficient one…– in order to achieve that goal.

On the other hand, the ‘effectual’ reasoning does not start with a specific goal, a focus or a challenge, but with a series of means that allow objectives to emerge little by little from the imagination and the aspirations of the founders and the ones who interact with them. That is the no-end experimentation world, the world of fast prototypes, of guerrilla marketing and of blind faith.

That is the way how it is explained by referents as Leonard Schlesinger, the Babson College president, in his book Action Trumps Everything (Black Ink Press, 2010), and Saras D. Sarasvathy, professor of the Darden School of Business in Virgina’s University.

Fran Chuán

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