Entrepreneurial Reasoning Skills By Saras D. Sarasvathy Of The University Of Virginia 's Darden School Of Business
What has emerged, as the funding and risk gap have widened, is a greater awareness that there are different entrepreneurial reasoning skills required depending on the type and maturity of the startup.
Based on research performed by Saras D. Sarasvathy of the University of Virginia 's Darden School of Business, there are specific characteristics, habits, and behaviors of successful startup entrepreneurs. The thought and problem solving processes of successful entrepreneurs identified by this research uncover a set of principles and logic that are quite contrary to the advice entrepreneurs are frequently urged to follow.
Most entrepreneurial advice is delivered by corporate leaders from mature businesses, academic institutions, and business service consultants such as CPA 's or lawyers. These advisers, based on their locus of experience, have more management dominated reasoning skills. However, most startup entrepreneurs outside product driven industries look at the problem of starting a new business with a different set of reasoning skills that are often better suited to launch less costly and lower risk ventures.
These advisers often deliver business advice to clients focusing on business administration and high levels of pre-planning. According to Saravathy, this advice is out of sync with the advice needed for the vast majority of startup entrepreneurs.
According to Sarasvathy 's research, what makes the startup entrepreneur 's…