Portfolio entrepreneurs: an effectuation approach to multiple venture development

Purpose – This paper aims to investigate how effectuation and causation logic influences portfolio formation among entrepreneurs. Design/methodology/approach – The methodology used was a case study with 15 participants. Findings – There is evidence of effectuation reasoning during the preliminary and early stages of venture and portfolio development. Portfolio entrepreneurs tend to adopt causation logic as ventures and portfolios mature. Research limitations/implications – The study is exploratory and looks at cases of successful portfolio entrepreneurs only. Practical implications – The findings will allow researchers and business mentors to provide more specific advice for other entrepreneurs such as nascent and novices, and potentially reduce the incidence of business failure. Originality/value – The paper provides an understanding of how business portfolios develop from an entrepreneur's perspective.