Table of Contents
Week 1 videos....................................................................................................................3
Video 1.1......................................................................................................................................3
Video 1.2 Bird-in-hand principle (effectuation).............................................................................4
Video 1.3: Affordable loss principle (effectuation)........................................................................4
Video 1.4 Crazy Quilt Principle (Effectuation)...............................................................................5
Video 1.5 Lemonade Principle (Effectuation)................................................................................5
Vid 1.6 Opportunity Generation (discovery & creation)................................................................6
Video 1.7 The role of search in opportunity discovery..................................................................6
Video 1.8 The role of prior knowledge in opportunity discovery..................................................7
Video 1.9 The role of prior knowledge in opportunity creation....................................................8
Video 1.10 Serendipity.................................................................................................................8
Video 1.11 Opportunity generation & effectuation/ causation.....................................................9
Week 2.............................................................................................................................11
Video 2.1 The business model defined........................................................................................11
Video 2.2 Designing a viable business model..............................................................................12
Video 2.3 The business models functions...................................................................................12
Video 2.4 Business model innovation.........................................................................................15
Video 2.5 Degree of Business model innovation.........................................................................15
Week 3.............................................................................................................................16
Video 3.1 The entrepreneur........................................................................................................16
Video 3.2 The roles of the Entrepreneur – managing and lead....................................................17
Video 3.3 New Venture Team......................................................................................................20
Video 3.4 Social Capital and Strategic Alliances..........................................................................22
Video 3.5 Networks – The relational & cognitive dimension of social capital..............................25
Video 3.6 Networks – The structural dimension of social capital................................................27
Week 4.............................................................................................................................29
Lecture 4.1 Complementary Assets.............................................................................................29
Lecture 4.2 Protecting technology..............................................................................................30
Lecture 4.3 Commercialization strategies....................................................................................31
Lecture 4.4. Marketing & selling new technologies.....................................................................33
Week 5.............................................................................................................................36
Lecture 5.1 Risk & Uncertainty....................................................................................................36
Lecture 5.2 Dealing with risk: casual approach...........................................................................38
1
,Week 6.............................................................................................................................39
Lecture 6.1 Financial planning: What & Why?.............................................................................39
Lecture 6.2 income statement....................................................................................................40
Lecture 6.3 Cash flow statement.................................................................................................41
Lecture 6.4 Financial planning: balance sheet.............................................................................43
Lecture 6.5 Financial pllaning: estimating sales..........................................................................47
Week 7.............................................................................................................................49
Lecture 7.1 Growing your business.............................................................................................49
Lecture 7.2 entrepreneurial exit.................................................................................................52
Lecture 7.3 Exit and the phases of the entrepeunieal process....................................................53
Lecture 7..3 Exit: Trade sales’......................................................................................................55
2
,Week 1 videos
Video 1.1
Causation = Causation processes take a particular effect as given and focus on selecting
means to create that effect
Effectuation = Effectuation processes take a set of means as given and focus on selecting
between possible effects that can be created with that set of means.
Example: If you are a chef, and you have a menu, you will buy the ingredients based on the
dishes on the menu, after gathering you can create the desired effect (causation approach).
With the effectuation approach, the chef makes a dish with the available resources and then
try to get the desired effect.
Figure 1 Causation approach
Figure 2 Effectual approach
Figure 3 Differences between causation and effectuation
3
, Video 1.2 Bird-in-hand principle (effectuation)
Bird-in-hand principle = Work with the means you already have at hand. Use these means to
form the basis for decisions and new opportunities. You can start this by asking the following
3 questions:
Figure 4 the three questions of the bird-in-hand principle
Advantages of the B-I-H principle
- It enables you to get going right away (you already have the means)
- You are unique (only you have the skills that you posses, have the connections that
you have etc.)
- Inexpensive start: your means are yours
Video 1.3: Affordable loss principle (effectuation)
Principle: Don’t base decision on expected returns, but risk no more than you can afford to
lose.
Figure 5 Principle affordable loss
The entrepreneur can set a fixed risk rate, he trys to keep to the risk fixed but it want to
maximize the return. This means that failure does not need to end the entrepreneurial
dream, since you can set a risk rate and you know you can lose this. This can also stimulate
creativity to increase returns.
Figure 6 Risk vs Returns
4
Week 1 videos....................................................................................................................3
Video 1.1......................................................................................................................................3
Video 1.2 Bird-in-hand principle (effectuation).............................................................................4
Video 1.3: Affordable loss principle (effectuation)........................................................................4
Video 1.4 Crazy Quilt Principle (Effectuation)...............................................................................5
Video 1.5 Lemonade Principle (Effectuation)................................................................................5
Vid 1.6 Opportunity Generation (discovery & creation)................................................................6
Video 1.7 The role of search in opportunity discovery..................................................................6
Video 1.8 The role of prior knowledge in opportunity discovery..................................................7
Video 1.9 The role of prior knowledge in opportunity creation....................................................8
Video 1.10 Serendipity.................................................................................................................8
Video 1.11 Opportunity generation & effectuation/ causation.....................................................9
Week 2.............................................................................................................................11
Video 2.1 The business model defined........................................................................................11
Video 2.2 Designing a viable business model..............................................................................12
Video 2.3 The business models functions...................................................................................12
Video 2.4 Business model innovation.........................................................................................15
Video 2.5 Degree of Business model innovation.........................................................................15
Week 3.............................................................................................................................16
Video 3.1 The entrepreneur........................................................................................................16
Video 3.2 The roles of the Entrepreneur – managing and lead....................................................17
Video 3.3 New Venture Team......................................................................................................20
Video 3.4 Social Capital and Strategic Alliances..........................................................................22
Video 3.5 Networks – The relational & cognitive dimension of social capital..............................25
Video 3.6 Networks – The structural dimension of social capital................................................27
Week 4.............................................................................................................................29
Lecture 4.1 Complementary Assets.............................................................................................29
Lecture 4.2 Protecting technology..............................................................................................30
Lecture 4.3 Commercialization strategies....................................................................................31
Lecture 4.4. Marketing & selling new technologies.....................................................................33
Week 5.............................................................................................................................36
Lecture 5.1 Risk & Uncertainty....................................................................................................36
Lecture 5.2 Dealing with risk: casual approach...........................................................................38
1
,Week 6.............................................................................................................................39
Lecture 6.1 Financial planning: What & Why?.............................................................................39
Lecture 6.2 income statement....................................................................................................40
Lecture 6.3 Cash flow statement.................................................................................................41
Lecture 6.4 Financial planning: balance sheet.............................................................................43
Lecture 6.5 Financial pllaning: estimating sales..........................................................................47
Week 7.............................................................................................................................49
Lecture 7.1 Growing your business.............................................................................................49
Lecture 7.2 entrepreneurial exit.................................................................................................52
Lecture 7.3 Exit and the phases of the entrepeunieal process....................................................53
Lecture 7..3 Exit: Trade sales’......................................................................................................55
2
,Week 1 videos
Video 1.1
Causation = Causation processes take a particular effect as given and focus on selecting
means to create that effect
Effectuation = Effectuation processes take a set of means as given and focus on selecting
between possible effects that can be created with that set of means.
Example: If you are a chef, and you have a menu, you will buy the ingredients based on the
dishes on the menu, after gathering you can create the desired effect (causation approach).
With the effectuation approach, the chef makes a dish with the available resources and then
try to get the desired effect.
Figure 1 Causation approach
Figure 2 Effectual approach
Figure 3 Differences between causation and effectuation
3
, Video 1.2 Bird-in-hand principle (effectuation)
Bird-in-hand principle = Work with the means you already have at hand. Use these means to
form the basis for decisions and new opportunities. You can start this by asking the following
3 questions:
Figure 4 the three questions of the bird-in-hand principle
Advantages of the B-I-H principle
- It enables you to get going right away (you already have the means)
- You are unique (only you have the skills that you posses, have the connections that
you have etc.)
- Inexpensive start: your means are yours
Video 1.3: Affordable loss principle (effectuation)
Principle: Don’t base decision on expected returns, but risk no more than you can afford to
lose.
Figure 5 Principle affordable loss
The entrepreneur can set a fixed risk rate, he trys to keep to the risk fixed but it want to
maximize the return. This means that failure does not need to end the entrepreneurial
dream, since you can set a risk rate and you know you can lose this. This can also stimulate
creativity to increase returns.
Figure 6 Risk vs Returns
4
