Entrepreneurial Process Study Based On The Effectuation

Owning to its prominent contribution to the development of society and economy, entrepreneurship has become the focus that all global governments and many scholars have paid much attention to, there has witnessed a strong upsurge in the study of entrepreneurship around the world. Because of the multidisciplinarity and complexity of entrepreneurship phenomenon, many fields try to expatiate and explain it on their own views. Since 1980s, the study direction of entrepreneurship has turn to opening out the black box of entrepreneurship process and the mechanism of new market creation from focusing to entrepreneurial characteristics.Beginning with the Arrow's words about new market creation in 1974, and basing on the criticism of neoclassic economics, this paper abstracted key problem in the study of entrepreneurship process, which was entitled"Arrow's Problem". How the economic actors who are subjectively heterogeneous entrepreneurs create the new market? Next, we reviewed the entrepreneurship research of Neo-economics, Behavioral Theory, Resource-Based View, Social Capital View and Austrian Economics, discovered that these theories doesn't effectually resolve the"Arrow's Problem". Then, the paper elaborated the original theory that has emerged in international entrepreneurship domain these years, which is called effectuation. Finally, we designed a thought experiment based on the effectuation, and opened out the question detailedly that how the effectual actors create a shift from extant reality to the new market. We discovered that the effectuation theory not only provided a very effective method for the solution of"Arrow's Problem", but also promoted our development in other discipline domains further.