Effectuation in Crisis: How Displaced Women Entrepreneurs in Ethiopia Build Sustainable Businesses

This study explores how displaced women entrepreneurs in Ethiopia leverage effectuation principles to build sustainable businesses in resource-constrained, crisis-affected environments. By examining strategies such as affordable loss, means orientation, and partnership formation, the research extends effectuation theory to displacement contexts, where uncertainty and resource scarcity are prevalent. Findings reveal that affordable loss and means orientation—leveraging available resources and minimizing risks—are critical for sustaining businesses, showcasing the adaptability and resilience of women entrepreneurs. However, reliance on partnership opportunities and rigid control orientation may hinder business longevity, highlighting the limitations of effectuation principles in displacement settings. The study contributes to sustainable entrepreneurship by demonstrating both the relevance and constraints of effectuation theory in crisis-affected environments. It underscores the importance of flexible, resourceful strategies for women entrepreneurs navigating systemic challenges, offering insights for policymakers and support organizations. Practical implications include designing capacity-building programs that promote adaptive strategies, such as risk management and resource optimization, while addressing the challenges of partnerships and rigid control mechanisms. By aligning with the goals of sustainable development, this research not only highlights the potential of effectuation principles but also unravels their limitations, providing a nuanced understanding of how entrepreneurial strategies can foster resilient livelihoods and sustainable economic practices in crisis-affected regions.