Thursday, April 15
News Aggregation Center | Social Listening Post
Like Haha Love Sad Angry
 
Kritik
  • Home
  • About Us
  • Categories
    • Arts and Literature
    • Banking and Financial
    • Business Services
    • Campaign
    • Consumer Products
    • Current Affairs
    • Economics
    • Education
    • Entertainment
    • Food and Beverage
    • Healthcare
    • International Affairs
    • Kritik’s Newsletters
    • Letters
    • Lifestyle
    • Opinion
    • Personal Development
    • Politics
    • Public Services
    • Science & Technology
    • Service Providers
    • Social Issues
    • Sports
    • Tourism and Hospitality
    • Transportation
    • Travel and Leisure
    • Utilities
    • Others
  • Hot Topics
  • Video
  • Contact Us
  • Feedback
  • FAQ?
user avatar
Register Log In
critique, kritik

What to do in the face of uncertainty

Krit@@dm1N kritik
2 years ago
153 views

Entrepreneurship Often Involves Uncertainty. Here’s How to Deal With It Productively.

The future may be unknowable, but it isn’t unimaginable.
 
by Per Bylund | GUEST WRITER | Assistant Professor of Entrepreneurship and Records-Johnston Professor of Free Enterprise in the School of Entrepreneurship at Oklahoma State University
 
August 18, 2019 5 min read
Opinions expressed by Entrepreneur contributors are their own.

Late South African economist Ludwig Lachmann once wrote, “The future is unknowable, though not unimaginable.”

What he meant is, it’s beyond our ability to know what the future will bring. We cannot plan without errors, because we do not actually know anything about the future before it’s already reality.

The future is not simply unknown, which suggests a lack of information, but unknowable — what will be is uncertain. There is no information. We are, in this sense, slaves to destiny.

Related: 11 Ways Emotionally Intelligent People Overcome Uncertainty

But while the future is unknowable, this does not mean it is hopeless. Our efforts always aim to create some specific, limited part of the future. Entrepreneurs do this more than others, as entrepreneurship scholar Saras Sarasvathy argues.

They can do this, as Lachmann notes, as the future is imaginable. Because we can imagine different futures, we can act to create the better version. We have the creative ability to draft scenarios and possible outcomes, so we can prepare for what is more likely to be. And attempt to bring it about.

We all differ in our ability to imagine the future that will be. Very often it might simply be luck. But luck is not all, and it certainly isn’t reliable. Some seem to have the ability and willingness to face the unknowable by imagining and attempting to shape it, and they’re willing to bet that they’re right and put their money where their mouths are.

Related: 16 Ways to Create Your Own Happiness at Work

Entrepreneurs are in the business of creating big chunks of our future. They bear uncertainty.

How entrepreneurs bear uncertainty

But how do they do it? In his recent doctoral dissertation, Dr. Steve Trost studies how entrepreneurs bear uncertainty. They don’t simply rely on luck. Very often, entrepreneurs direct their efforts seemingly against the odds simply because they disregard information that others do not question — information that is oftentimes limiting.

Many entrepreneurs escape the curse of knowledge, because they don’t accept the notion that the past limits the promise of the future.

Related: 38 of the Most Inspirational Leadership Quotes

This is not necessarily an ability they are born with, however. There are ways to improve one’s ability to bear uncertainty. Here are four common strategies for entrepreneurs to better deal with the unknowable future:

1. Select the right members for your team

It is important to have a team with skills and competencies, but don’t forget the ability to think creatively and “outside the box.” Select members for your team who have the right expertise and whom you can trust. But also make sure that you believe they will be able to handle unanticipated situations. Because if they cannot, your business might fail.

2. Control the future

Sometimes offense is the best defense, and with uncertainty there is no other way to protect yourself. As Nicholas Nassim Taleb has discussed in his books, there can often be downsides that we never anticipated — and that can be much worse than we could have imagined. So take command and create the future instead of hoping it will be beneficial. Step ahead of the curve.

Related: How Successful People Stay Productive and In Control

3. Let others take the risk

A major problem with uncertainty is that you simply cannot know what to expect. One way of dealing with this is to have others share this burden. For example, by letting customers prepay, you can avoid cashflow problems and get a better idea of the demand for your product. By crowdfunding your product development, you don’t have to carry all of the financial burden — maybe even none of it.

4. Learn what matters

As the founder of a startup, you likely already have expertise in your area of business. But what you need is entrepreneurship expertise. Your job is to imagine the future and go about creating the version of it that is best for you and your business. The only way of doing this is to learn two things: to understand people and understand the economy. Technical knowledge is easily acquired — and can be hired. You have a team for a reason, so use it.

We are desperate to know about the future, but the problem is that it is unknowable. This is the foremost burden on entrepreneurs, since they are in the business of creating their version of the future and hoping for the best. They bear uncertainty. And they do it for the whole economy.

The future is imaginable and, at least to some degree, can be controlled and even created. But to create something new, it is necessary to also think outside the box — new and different. Don’t allow yourself to be unnecessarily restricted by the past and what you think you know. More information is not necessarily better, especially if you endeavor to do what has never been done before.

In a very real sense, entrepreneurs create our future.

Source: https://bit.ly/2z5QFyz

Categories: Entrepreneurship
Post reactions
Like (2)
Haha (0)
Love (0)
Sad (0)
Angry (0)
Related Posts
critic; critique; kritik; newsfeed

What do successful entrepreneurs have in common?

1 week ago
newsfeed, critique, kritik

What should your salary be as a business owner?

3 weeks ago
newsfeed, critique, kritik

Entrepreneurs need more than just IQ

3 weeks ago
kritik, critique, critic, newsfeed

Digital entrepreneurs feel the urban-rural divide

4 weeks ago
critique, kritik, critic, newsfeed

LinkedIn co-founder: Success requires the right mindset

1 month ago
critique, kritik, news feed

6 areas primed for opportunity in 2021

3 months ago
Recent Posts
  • Lisbon to roll out fleet of electric ferries
  • Germany’s Federal Government stumps up €700m for 6G research
  • 5 cities that lead the way on renewables
  • Top Quality Malaysian Politician hard at Work
  • COVID-19: In the safety ranking, the top four are all Chinese vaccines
Recent Comments
    Archives
    • April 2021
    • March 2021
    • February 2021
    • January 2021
    • December 2020
    • November 2020
    • October 2020
    • September 2020
    • August 2020
    • July 2020
    • June 2020
    • May 2020
    • April 2020
    • March 2020
    • February 2020
    • January 2020
    • December 2019
    • November 2019
    • October 2019
    • September 2019
    • August 2019
    • July 2019
    • June 2019
    • May 2019
    • April 2019
    • March 2019
    • February 2019
    • January 2019
    • December 2018
    • November 2018
    • October 2018
    • September 2018
    • August 2018
    • July 2018
    • June 2018
    • May 2018
    • April 2018
    • March 2018
    • February 2018
    • January 2018
    • December 2017
    • November 2017
    • October 2017
    • September 2017
    • August 2017
    Categories
    • Advanced Technology
    • Agriculture
    • Arts & Literature
    • Banking and Financial
    • Business Services
    • Campaign
    • Consumer Products
    • Corporate News
    • Current Affairs
    • Customer Service
    • Cybersecurity
    • Digital Marketing
    • Economics
    • Editorial
    • Education
    • Entertainment
    • Entrepreneurship
    • Food and Beverage
    • Gig Economy
    • Healthcare
    • Human Resource
    • Humor
    • International Affairs
    • Investment
    • Leadership
    • Letters
    • Lifestyle
    • Opinion
    • Others
    • Personal Development
    • Politics
    • Productivity Tools
    • Public Services
    • Sales and Marketing
    • Scandals
    • Science and Technology
    • Service Providers
    • Smart City
    • Social Issues
    • Sports
    • Startup
    • Strategic Management
    • Tourism and Hospitality
    • Transportation
    • Travel and Leisure
    • Utilities
    Login with your Social Account
    Kritik © 2017-2019 ZOHL Web Services | All Rights Reserved.
    A Division of ZOHL Industries Sdn Bhd (351827-A)
    • Home
    • About Us
    • Content Policy
    • Privacy Policy
    • Terms of Use
    • Disclaimer
    • Contact Us
    • Feed

    This site is best viewed with 1400x900 resolution (all browsers) and with IE 10.0 version only