Effectuation facing crises in lifestyle Entrepreneurship

Abstract

This article investigates how effectuation contributes to overcoming crises in lifestyle businesses. The research was a multiple case study involving seven entrepreneurs operating along the coast of São Paulo. Based on a qualitative and exploratory approach, 28 semi-structured interviews and document analyses were conducted, enabling the identification of patterns in the modes of action adopted in response to adversities. The analysis was initially guided by the five effectual principles as analytical categories – bird in hand, affordable loss, crazy quilt, lemonade, and pilot in the plane – and revealed two additional categories: persistence nurtured by identity and “let’s go together” (solidarity network). The findings indicate that lifestyle entrepreneurs heavily rely on their effectual means to sustain their businesses, particularly under severe constraints in crises. Particularly in times of adversity, keeping businesses running helps entrepreneurs, their employees, and their customers prevent poverty and harm to their health and well-being, as advocated by the UN Sustainable Development Goals (SDG 1 and SDG 3). Personal identity and affective bonds played a central role in resilience. It is concluded that effectuation offers a robust explanatory framework for understanding how lifestyle entrepreneurs operate and overcome crises. The study provides theoretical and practical contributions by deepening the understanding of effectuation in lifestyle entrepreneurship and crisis contexts, besides suggesting topics for further research