Which of the following concepts is central to effectuation theory?

The concept that is central to effectuation theory is the creation of solutions through available means. Effectuation focuses on how entrepreneurs can leverage the resources they currently have, along with their skills and social networks, to create new ventures and solutions. This approach emphasizes taking action based on what is readily available rather than committing to extensive market predictions or comprehensive plans.

Effectuation is grounded in the idea that entrepreneurs can shape their future based on their available resources and the networks they can build, leading to innovative solutions that are often unforeseen at the outset. This method encourages flexibility and adaptability, allowing entrepreneurs to pivot and iterate their ideas based on real-time feedback and available opportunities, rather than strictly adhering to preconceived plans or exhaustive financial forecasts.

This core principle distinguishes effectuation from traditional business planning methodologies, which often rely on detailed market analysis and extensive planning, underscoring the proactive and resourceful mindset of entrepreneurs within the framework of effectual logic.