Cognitive Scaffold

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MENTAL MODEL · M0208

Effectuation

Effectuation
BusinessmediumManagement
Included
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Version 1.0.0 · Updated 2026-07-30

CORE DEFINITION

In highly uncertain entrepreneurial contexts, instead of planning backward from predetermined goals, one improvises outcomes using existing means, limited by affordable loss.

SCAFFOLDING EFFECT

psychology

Reduce cognitive load

Act improvising with affordable loss rather than goal-driven planning.

anchor

Anchor fast decisions

Effectuation is how entrepreneurs, facing uncertain 'unknown unknowns', construct goals backward from existing means (who I am, what I know, whom I know) rather than predicting the future. Commitments and affordable loss guide action.

MINIMUM ACTION

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Source support: Explicit

  • link
    effectuation.orghttps://effectuation.org/effectuation-101ZH · Explicit
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