Effectuation: The Logic of Expert Entrepreneurs

Entrepreneurship runs on asking. From testing ideas to securing customers and partners, progress depends on a founder’s ability to ask well. This isn’t a soft skill — it’s the core competency behind every venture. Here’s a practical guide to what to ask, whom to ask and how to ask effectively.

Should entrepreneurship be taught? A new paper co-authored by Darden professor Saras Sarasvathy finds that entrepreneurship education in high school can increase the likelihood that students will start substantial business ventures both right after graduation and later in their careers.

Most novice entrepreneurs think they need outside investment to launch a company. But according to Professor Saras Sarasvathy, the opposite is often true: nearly 80% of companies that go public never raise a dollar of venture capital. The real key to success? Relationships.

The widely watched Economic Policy Uncertainty Index has reached its highest level since the pandemic. And we’re only halfway through 2025. How can business leaders best navigate this environment? UVA Darden Professor Saras Sarasvathy shares lessons from successful entrepreneurs.

Professor Saras Sarasvathy proposes a novel framework combining Elinor Ostrom’s institutional analysis and development model of collective action and effectuation to tackle climate change. Instead of relying on predictive top-down approaches, she advocates leveraging existing resources and partnerships while embracing unexpected opportunities.

Launching a startup means navigating a world of unknowns. How can new entrepreneurs effectively manage this uncertainty? Darden Professor Saras Sarasvathy offers a solution with the CAVE framework.

Professor Saras Sarasvathy discusses the virtues of the “middle class of business,” what she calls enduring companies that grow steadily but not massively and that create jobs and spur economies. Teaching entrepreneurship is akin to teaching the scientific method to those who aren’t scientists, and the mindset can help solve problems in the world.

While the future has always been unpredictable, the global uncertainty caused by the novel coronavirus is at a record high. To help us steer through this unprecedented crisis, Professor Saras Sarasvathy shares insights on entrepreneurial decision-making and offers four strategies seasoned founders use to turn uncertainty into opportunity.

The “pivot” has become part of startup lexicon. But pivot-thinking may not work for all companies, and substantially changing an organization’s strategy can be difficult and expensive for entrepreneurs. Darden experts weigh in.

How do successful entrepreneurs think? Darden Professor Saras Sarasvathy discusses her study of “effectuation” and the unique logic expert entrepreneurs employ to create the future, rather than simply predict it.