Convergence of Effectual Reasoning Entrepreneurship and Humanitarian Entrepreneurship: A Foresight-Driven Approach for People, Planet, and Purpose

Entrepreneurship has evolved far beyond its traditional boundaries of profit-driven ventures, embracing deeper, purpose-driven frameworks that prioritize societal and environmental impact. Two significant paradigms—Effectual Reasoning Entrepreneurship and Humanitarian Entrepreneurship—offer unique insights into this transformation. When combined with foresight strategies and regenerative principles, these models can catalyze the next wave of entrepreneurship, rooted in sustainability, inclusivity, and long-term impact.

My Journey with These Paradigms

I had the privilege of listening to Professor Ki-Chan Kim speak on Humanitarian Entrepreneurship in person at the World SME Conference held in Kuala Lumpur. Organized by the International Council for Small Business (ICSB) and hosted by ICSB Malaysia Networks, this five-day event provided profound insights into how entrepreneurship can uplift communities and address critical global challenges. My involvement with ICSB began through Dr. Zakaria, who introduced me to this vibrant network of thinkers and changemakers.

Separately, I became acquainted with Effectual Reasoning Entrepreneurship through Dash, who shared his knowledge and experiences of this model. Although I missed the opportunity to attend Dr. Saras Sarasvathy’s session in Malaysia in October, her pioneering work on effectual reasoning continues to resonate with me deeply.

Both these models have become pillars of my thinking and align strongly with the work we do around regenerative principles. They represent not just approaches to entrepreneurship but also frameworks for driving meaningful, systemic change.

Understanding Effectual Reasoning and Humanitarian Entrepreneurship

Effectual Reasoning Entrepreneurship

Introduced by Saras Sarasvathy, this model emphasizes starting with available resources—who you are, what you know, and whom you know—and leveraging them to create opportunities. Entrepreneurs rely on iterative learning, partnerships, and adaptability, focusing on controlling the future rather than predicting it.

Humanitarian Entrepreneurship

Coined by Professor Ki-Chan Kim, this approach integrates entrepreneurship with a humanitarian mission. It prioritizes solving critical societal challenges such as poverty, inequality, and climate change through innovative business models. The goal is to create sustainable, scalable solutions that improve lives without compromising environmental or ethical standards.

Convergence: Common Ground and Opportunities

At their core, both models share a focus on adaptability, collaboration, and purpose-driven action:

Resource Optimization

Effectual reasoning begins with available means, while humanitarian entrepreneurship optimizes those means for societal benefit, making them natural allies in resource-constrained environments.

Iterative Innovation

Both frameworks thrive on experimentation, learning from failure, and iterative improvement—a shared pathway to addressing complex, real-world problems.

Stakeholder Engagement

Partnerships and co-creation are central to both models. Entrepreneurs engage stakeholders, including communities, NGOs, governments, and businesses, to amplify impact.

Foresight Strategies: Catalyzing the Convergence

Foresight strategies provide the tools to anticipate future challenges and opportunities, enabling entrepreneurs to design businesses that remain relevant and impactful:

1. Scenario Planning Entrepreneurs can use foresight to visualize potential futures, aligning their ventures with emerging societal needs.
2. Regenerative Principles Moving beyond sustainability, regenerative principles encourage entrepreneurs to design ventures that restore ecosystems, uplift communities, and create net-positive outcomes.
3. Long-Term Thinking By integrating foresight, entrepreneurs can balance immediate goals with long-term vision, ensuring resilience and adaptability.

Case Study: An Example of Converged Entrepreneurship

Imagine a social enterprise focused on clean energy access in rural communities:

• Effectual Reasoning: The entrepreneur starts by identifying local resources (e.g., solar potential) and forging partnerships with NGOs and tech providers.
• Humanitarian Entrepreneurship: The enterprise ensures the solution is affordable, community-owned, and scalable.
• Foresight Strategies: The venture anticipates technological advancements and climate challenges, integrating modular designs for future upgrades and impact measurement.

This convergence creates a solution that is innovative, inclusive, and regenerative.

The Future of Purpose-Driven Entrepreneurship

The fusion of effectual reasoning and humanitarian entrepreneurship, underpinned by foresight strategies, represents the next frontier of entrepreneurship. It shifts the focus from profit alone to profit with purpose, aligning with global movements like the SDGs and ESG frameworks.

By prioritizing people, planet, and purpose, entrepreneurs can lead the way in building a regenerative future, one venture at a time. This convergence empowers founders to not only solve problems but also anticipate and shape the challenges of tomorrow.

Conclusion

Having had the good fortune to learn about these two transformative models, I see immense potential in their convergence. The work we do with regenerative principles can be significantly enhanced by this dual approach, blending resource-driven innovation with a humanitarian mission. It is not just about solving today’s problems—it is about creating solutions that endure, evolve, and regenerate for the future.

Let us embrace this synergy, guiding entrepreneurs to drive innovation, resilience, and meaningful impact in an increasingly complex world. Together, we can chart a new course for entrepreneurship that transcends boundaries and delivers lasting value for all.