The learning outcomes are as follows:
LO1: Identify and describe the key personality traits associated with entrepreneurial behaviour and apply them to the entrepreneurial profile of the protagonist.
LO2: Analyse entrepreneurial decision-making in fragmented, institutionally constrained markets through the lens of effectuation theory.
LO3: Evaluate the relative strengths and limitations of effectual versus causal logic across different stages of a venture’s life cycle.
LO4: Assess the organisational, governance, and financing demands of transitioning from an effectual to a causal logic, and evaluate the implications of this transition for a scaling firm in an emerging market context.
In July 2024, Krishna Pandya, Chief Executive Officer and Founder-Director of V21 Group of Ventures – a conglomerate comprising six independent private limited companies in the real estate sector headquartered in Pune, Maharashtra – reflects on his entrepreneurial journey which has led to the establishment of a successful and profitable entrepreneurial venture within the fragmented, unorganised and cluttered real estate sector in just six years. His reflections are in the context of the questions posed to him during an awards ceremony at which V21 has been awarded the “The Realty Growth Advisor of the Year” (Shaikh, 2024). He also has to decide what should be his approach in the next leg of his entrepreneurial journey as he seeks to become a major estate developer in Pune and Mumbai in Western India. Should he follow his time-tested and successful approach of opportunity creation through proactive action – what is known as the effectual approach? Or would he need to change his approach to entrepreneurship at this stage? Would a venture capitalist place his bets on V21 and Pandya’s current approach, if Pandya were to seek any alternative source of finance?
This case study helps students understand effectuation as the approach to entrepreneurship followed especially in the initial stages of a startup. It explains the new venture creation process through the lens of the effectual approach, which emphasises opportunity creation through proactive action. This method contrasts with traditional decision-making that relies on causal logic, predicting and planning for the future. The case also prompts students to consider how an entrepreneurial approach might evolve depending on the life cycle of the firms and the entrepreneurs.
This case study is suitable for use within entrepreneurship or strategy courses at both the undergraduate and postgraduate levels. At the undergraduate level, it works best as an introduction to new venture creation and entrepreneurial decision-making. At the MBA or postgraduate level, it is particularly effective in distinguishing between causal and effectual logic, and in examining how entrepreneurial approaches must evolve as firms scale. Instructors teaching students unfamiliar with effectuation theory are advised to assign the Society for Effectual Action readings and Sarasvathy (2001) as pre-session preparation. For students with limited exposure to India’s real estate sector, the KPMG (2024) industry report cited in the case provides useful contextual grounding.
CSS 3: Entrepreneurship.
