Entrepreneurs strive to solve problems and create value through partnerships. Studying how they do that led to the hypothesis that "asking" played a critical role in the success of an entrepreneur. This note addresses studies of expert entrepreneurs and how they differ from novice entrepreneurs, including discussion on type, method, and frequency of asking, as well as effectual reasoning.

This technical note discusses how a high-potential start-up entrepreneur should use equity in building and growing a new venture. One of the most crucial things for entrepreneurs to understand is equity: Most high-growth ventures grow through equity partnerships, but most new ventures fail because relationships between founding partners and other equity partners become conflicted and impossible to repair. You need to share equity to build an enduring high-growth venture. But sharing equity without understanding how increases the probability for the venture breaking up and failing. The note addresses multiple topics regarding equity, including compensation, profit sharing, decision rights, and cap tables.

Suitable for MBA and executive learners, this case series presents an engaging narrative that prompts students to discuss entrepreneurial thinking. An entrepreneur who loves his native Swedish Lapland uses his natural gift for effectuation to ask What? What next? And What now? As his ventures evolve, students begin to ask themselves how they would master similar challenges to their own entrepreneurial plans and expectations. The case can be taught in either one or two sessions of a 90-minute MBA course or a four-hour executive education class. An effective complement is the technical note entitled, "What Makes Entrepreneurs Entrepreneurial" (UV1356).

Suitable for MBA and executive learners, this case series presents an engaging narrative that prompts students to discuss entrepreneurial thinking. An entrepreneur who loves his native Swedish Lapland uses his natural gift for effectuation to ask What? What next? And What now? As his ventures evolve, students begin to ask themselves how they would master similar challenges to their own entrepreneurial plans and expectations. The case can be taught in either one or two sessions of a 90-minute MBA course or a four-hour executive education class. An effective complement is the technical note entitled, "What Makes Entrepreneurs Entrepreneurial" (UV1356).

Suitable for MBA and executive learners, this case series presents an engaging narrative that prompts students to discuss entrepreneurial thinking. An entrepreneur who loves his native Swedish Lapland uses his natural gift for effectuation to ask What? What next? And What now? As his ventures evolve, students begin to ask themselves how they would master similar challenges to their own entrepreneurial plans and expectations. The case can be taught in either one or two sessions of a 90-minute MBA course or a four-hour executive education class. An effective complement is the technical note entitled, "What Makes Entrepreneurs Entrepreneurial" (UV1356).

Students at all levels explore the psychology of entrepreneurship and new product branding and marketing as a young IBM executive decides whether to become an entrepreneur. He must evaluate his business plan; seek advisors; and decide how much money it will take to get started. His product idea? On-the-go water for dogs. With market research complete and a team of advisors assembled, he must decide whether to take the plunge.

This note discusses the legal issues entrepreneurs must consider as they form their company as a legal entity. In Q&A format, the note concisely defines the types of entity available and discusses when and how to engage a lawyer.

This note examines the pros and cons of two ways to build new ventures. The former is called causal or predictive, because it depends on accurate predictions and clear goals. The latter is effectual or nonpredictive, and it is extremely stakeholder-dependent and means-driven. It is very tempting to jump to the conclusion that the latter is the better way since it is overwhelmingly preferred by expert entrepreneurs. But is that really so?

Ideal for a study of entrepreneurship as a phenomenon, this note explores the difference between causal models and effectuation. Whereas causal models focus on maximizing returns by selecting optimal strategies, effectuation begins with a determination of how much one is willing to lose and leveraging limited means in creative ways to generate new ends as well as new means. The effectuator then uses the very process of building the venture to bring other stakeholders on board and creatively leverages slack resources available in the world. At each stage of the process he or she chooses options that create more options in the future.

This note reflects a new focus on "effectuation," the logic behind entrepreneurial expertise, which consists of tacit as well as learnable and teachable aspects of experience that are related to high performance in specific domains. Instead of taking either traits or circumstances as inputs and trying to explain variance in performance, the expertise lens focuses on understanding commonalties across a variety of experts in a single domain, given high levels of performance. Effectuation matters, not merely because expert entrepreneurs prefer an effectual logic over a causal one, but because of the details it offers of a comprehensive alternative frams for tackling entrepreneurial problems. Which fram entrepreneurs use influences how they formulate problems; what alternatives they perceive and generate; which constraints they accept, reject, and/or manipulate and how; and why they heed certain criteria over others in fabricating and implementing new solutions. Logical framing matters because it makes a real difference in the world and makes a world of difference in the reality entrepreneurs perceive and make possible or impossible.

This technical note explores a framework by which entrepreneurs can evaluate their ideas before going forward based on who they are, what they know, and whom they know. Drawing on frameworks presented in textbooks, trade books, journal articles, periodicals, and on Web sites that claim to predict the feasibility and value of new venture ideas. Figure 1 depicts a simple and useful summary of four key concepts at the heart of many of these frameworks: Is it doable? Is it worth doing? Can I do it? Do I want to do it? These questions address feasibility from a technical, market, financial, organizational, and motivational standpoint.

The case chronicles the development of Lumni, Inc., an international start-up offering innovative mechanisms for financing higher education. It focuses on: the details of decision making required to transform an idea into a viable business; building partnerships; the challenge associated with raising venture capital; and the challenges of creating a new market where human capital can be traded to finance higher education.

This note discusses the legal issues entrepreneurs must consider as they form their company as a legal entity. In Q&A format, the note concisely defines the types of entity available and discusses when and how to engage a lawyer.

What are the characteristics, habits, and behaviors of the species entrepreneur? Is there such a thing as "entrepreneurial thinking"? Is there a learnable and teachable "core" to entrepreneurship? The author studied the problem-solving process of 30 entrepreneurs from a variety of industries whose companies ranged in value from $200 million to $6.5 billion. Careful analysis revealed a distinct thought process: "effectual reasoning." Using U-Haul as an example, she delineates the way in which entrepreneurs factor in affordable loss, strategic partnerships, and leveraging contingencies. Thinking entrepreneurially, as opposed to managerially or strategically, means believing in a yet-to-be-made future that can be shaped by human action, and realizing that to the extent that such action can control the future, they need not expend energies trying to predict it. It is much more useful to understand and work with the people who are engaged in the decisions and actions that bring it into existence.