What is the key premise of Effectuation in decision-making?

The key premise of Effectuation in decision-making is about starting with available resources. This approach emphasizes entrepreneurs making decisions based on what they currently have at their disposal—such as skills, knowledge, and networks—rather than focusing on predictions about the future or extensive market analysis. Effectuation operates under the belief that the future is inherently unpredictable and, therefore, it's more beneficial to leverage existing means to create new opportunities. This allows entrepreneurs to be flexible and adaptive in their ventures, making iterative decisions based on current resources and stakeholders' contributions, rather than relying solely on preconceived plans or extensive market research.

The other choices reflect traditional approaches to decision-making in business that tend to focus on forecasting and pre-planning, which are not central tenets of Effectuation. Instead of looking outward for market viability before acting, Effectuation encourages starting with what you have and using that as a foundation to build innovative solutions.