First Principles Entrepreneurial Effectuation

This study presents a conceptual framework on ‘First Principles Entrepreneurial Effectuation’ and indicates that means-path-end is a better framework to understand how entrepreneurial people reason about specific problems in their path from a given set of means to new imagined ends. This study further shares the findings of an exploratory research with startup entrepreneurial respondents considering the suggested conceptual framework. Entrepreneurial can reason by first principles or by analogy in their path from a given set of means to new imagined ends. The imagined ends are different based on different reasonings on the path to solve problems and it is indicated that potentially ‘First Principles’ based imagined ends can result to better value outcomes as part of proposed conceptual framework. This study opens a dimension for further empirical research to substantiate the suggested conceptual framework. This study can impact the newer generations in setting the entrepreneurial path for ‘visiondriven company’ in an ‘elemental cost optimal’ manner.