Building The Capabilities For Managing Uncertainty In Entrepreneurial Contexts: A Sensemaking Approach

Abstract

How entrepreneurs act upon the uncertainties from the initiation to the finalization of the entrepreneurial venture creation process is an area where the amount of conceptual and empirical research studies is significantly limited. In this study, a novel approach to entrepreneurial cognition is introduced for filling this gap in the literature, by employing the elements of sensemaking theory to entrepreneurial cognition, proposing that entrepreneurs engage in a purposed sensemaking process during their entrepreneurial experience. As individual entrepreneurs develop certain skills and capabilities for succeeding in their entrepreneurial acts, the study further argues that entrepreneurial sensemaking can be regarded as an important capability which can be improved to carry the individual entrepreneur from chaos towards a more organized condition. With its unique approach to how high levels of uncertainty are perceived and acted upon by the entrepreneurs, the study is expected to make a significant contribution to both sensemaking and entrepreneurship literature.