YASH GAONKAR

PG-13-11

What makes entrepreneurs entrepreneurial?

1) What is causal reasoning?
Ans: Causal reasoning begins with a pre-determined goal and a given set of means
and identifies the optimal way. It includes the traditional way of making decisions.

Eg. If a person wants to start a restaurant he would analyse all the financial risks
whether there is potential in the business. He would hire best chef and human
resource. Here the goal is determined i.e. to start the restaurant and then the given
means are utilised optimally to achieve the goal.

2) What is effectual reasoning?

Ans:Effectual reasoning is the inverse of causal thinking. It does not begin with a
specific goal instead it begins with a given set of means and the goal emerges
consequently. Entrepreneurs prefer effectual thinking however the best
entrepreneurs are capable of using both.

An example of effectual reasoning would involve a chef who is not given a menu
in advance, and is escorted to a strange kitchen where he or she has to explore the
cupboards for unspecified ingredients and cook a meal with them. While both
causal and effectual reasoning call for domain-specific skills and training, effectual
reasoning demands something more imagination, spontaneity, risk-taking, and
salesmanship.

3) Which style do entrepreneurs follow?

Ans: Entrepreneurs follow effectual reasoning. Entrepreneurs are entrepreneurial,
as differentiated from managerial or strategic, because they think effectually; they
believe in a yet-to-be made future that can substantially be shaped by human
action; and they realize that to the extent that this human action can control the
future, they need not expend energies trying to predict it. In fact, to the extent that
the future is shaped by human action, it is not much use trying to predict it it is
much more useful to understand and work with the people who are engaged in the
decisions and actions that bring it into existence.
4) Which style do you follow?
Ans: I follow causal reasoning as I always pre-determine a goal and then with
available resources try to optimally reach the goal therefore my decision making
suits causal reasoning.
For example if given a scenario of cooking food without prior information of what
to cook I would decide what has to be cooked and what resources are available
with me therefore the goal would be decided and then I will make arrangements of
the resources.

Questionnaire:
1) If you were asked to organize a party for 31st December at 8pm and you were
informed at 4pm how would you go about it?
2) Do you always keep a goal in mind before doing a task or just go with the flow?
3) If you have to start a restaurant how would you go about it?

Assignment 2
Q.1. Evaluate govt sponsored platforms like Mahalaxni saras intended to promote
entrepreneurship
Ans:
This is a platform for all artisans and craftsmen across the country and is a perfect
blend of exchanging ideas and implementing views. There are so many rural
entrepreneurs who have good exposure by being given a chance to set up stalls
with the help of the government thus enabling the visitors to see a unique
collection of the most authentic rural products. This is the place where people
would get the most unusual items and where we have the best collection of such
articles. This fair or festival becomes important as we wouldnt get the things we
get here in ordinary everyday festivals.
It is NABARD which has been greatly contributing to promoting the welfare and
care of these artisans and this annual festival has always had the best artists also
visiting this place. The main idea of the Mahalaxmi SARAS mela is to promote the
rural talent of Maharashtra. An initiative by the rural department of Maharashtra
Government, this endeavor has gone down well amongst tourists and the
craftsmen. A core committee organizes the festival and this 10 day festival also has
a media partner.

Q.2. As a management graduate what suggestions do you have to offer to

the self help groups and rural artisans participating at Mahalaxmi saras?
Ans:
According to me Govt. can tie up management institutes with these programs by
associating the management students with the artisans and craftsmen. What govt.
can do is make a group of students from these management institutes and assign
them an artisan or craftsmen the group would be responsible for all the marketing
and management activities for that artisan. This would help the artisans as well as
the students the students would gain practical knowledge and it would also help the
artisan to sell his products effectively. As these artisans lack marketing skills; these
students can help them with it. Govt. can also give a small amount of money to the
students as stipend and certificate. For this purpose the students should be
informed much earlier before the program starts, the students can even visit the
artisans village and get 1st hand information of how the product is made which
would help him/her to market the products in a better way. In this way these
artisans would get their own marketing manager and they would understand the
importance of marketing which would help them flourish their business.