Facing uncertainty: An entrepreneurial view of the future?

Abstract

AbstractIn business the future is not predetermined, and the unexpected often happens. So how should entrepreneurs (and businesses) try to address that future uncertainty? This paper suggests that there are two main options:1.The often-preferred approach seeks to reduce uncertainty by forecasting and planning, using ‘left-brained’ logic and analysis.2.The alternative way seeks to live with, and to benefit from, uncertainty by using ideas derived from exploration, effectuation, antifragility and ‘trial and error’.This paper compares the two approaches and considers their rationales and potential effectiveness. It suggests that forecasting and planning has many drawbacks and is often not the best way to operate in uncertain conditions. Nevertheless, it is often advocated and its thinking seems to have been adopted as the default philosophy for business. Therefore if, as has been suggested, uncertainty is the norm, do we need to advocate adopting a different way of thinking?