Process Theories

What are the Process Theories about Entrepreneurship?

Process theories focus on the actions and methods entrepreneurs use to launch ventures, rather than their personality traits. They answer the question: "What do entrepreneurs actually do?"

Bricolage Theory

"Making do with what is at hand."
In environments of resource scarcity, entrepreneurs cannot wait for perfect funding. This theory suggests they create value by combining and recombining existing resources for new purposes, often ignoring the resources' original intended use.

Effectuation Theory

Control vs. Prediction.
Saras Sarasvathy’s theory argues that expert entrepreneurs do not predict the future; they create it. Instead of starting with a goal, they start with their means (who they are, what they know, whom they know) and let the goals emerge through an iterative process of stakeholder commitments.

Emancipation Theory

Breaking Free.
This perspective views entrepreneurship as a mechanism for breaking free from constraints—whether they are economic (wage slavery), social, or institutional. It frames the process as a journey toward autonomy and self-determination.

Experiential Learning

Learning by Doing.
Entrepreneurs rarely succeed on the first try. This theory posits that the entrepreneurial process is a continuous loop of Concrete Experience, Reflective Observation, Abstract Conceptualization, and Active Experimentation (Kolb’s Cycle).

Harvard School Theory

The Pursuit of Opportunity.
Often associated with Howard Stevenson, this defines entrepreneurship as "the pursuit of opportunity without regard to resources currently controlled." It outlines a strategic process of identifying needs and mobilizing external resources to meet them.

Lean Launchpad

Customer Discovery.
Popularized by Steve Blank and Eric Ries, this process theory replaces the traditional business plan with the "Business Model Canvas." It focuses on rapid iteration, getting "out of the building" to test hypotheses, and pivoting based on customer feedback.