Enterprise in action Essay Example | Topics and Well Written Essays - 250 words

Enterprise in action - Essay Example Effectual logic takes advantage of unexpected events in the market. On the other hand, causal logic entrepreneurs engage actively in exploring existing opportunities and are capable of building their future upon them. These investors are able to correlate between one variable and the other and interpret the future depending on the consequence that one variable has over the other. When it comes to basis for taking action, effectual logic investors do not make goals at the beginning but the goals tend to emerge in the course of action. In contrast, causal logic is goal oriented, their means of achievement is determined by a set of goals, and objectives that they strive to satisfy. Causal logic entrepreneurs are driven into investment by the fact of maximizing on risk adjusted to the returns. Effectual logic entrepreneurs will limit their investment to a certain level of their acceptance in order to give them a chance to participate again next time. Effectual logic is more flexible but less secure while causal logic is not flexible but secure to some extent (Stuart Reed,