A really interesting piece on Mavericks at Work contrasts the differences in thinking between MBAs and Entreprenuers, and declares that Entrepreneurs are better suited to survive tough times. (Life is too short for spoiler alerts.)
The post focuses on the fascinating research of Saras D. Sarasvathy, which focuses on “the ‘causal’ reasoning used by MBAs versus the ‘effectual’ reasoning used by entrepreneurs.”
Lifting an entire section from the post:
Causal reasoning, she explains, “begins with a pre-determined goal and a given set of means, and seeks to identify the optimal—fastest, cheapest, most efficient, etc.—alternative to achieve that goal.” This is the world of exhaustive business plans, microscopic ROI calculations, and portfolio diversification.
Effectual reasoning, on the other hand, “does not begin with a specific goal. Instead, it begins with a given set of means and allows goals to emerge contingently over time from the varied imagination and diverse aspirations of the founders and the people they interact with.” This is the world of bootstrapping, rapid prototyping, and guerilla marketing.
The MBAs’ fallacy is that they try to predict and thereby control the future. Entrepreneurs forge ahead using the resources at hand and nimbly adjust to surprises.
Worth reading. Check it out.
So much for my “getting an MBA for the fun of it” plans. Unless there’s such a thing as a strictly entrepreneurial MBA. Hmmm…