Abasyn Journal of Social Sciences. Special Issue: AiCTBM 2018

Conceptualizing and Rationalizing Opportunities: Inductive Reasoning and the Creation of a New Enterprise

Dr. Muhammad Nouman (corresponding author), Prof. Alistair Anderson, Dr. Fahad Abdullah

Assistant Professor, Institute of Management Science
Professor, Lancaster University Management School, Lancaster University UKAssistant Professor, Institute of Management Sciences


An entrepreneur conceptualizes and rationalizes the creation of the new enterprise through the use of inductive analogical or metaphorical reasoning. Such reasoning sets the stage for commercialization of the enterprise and helps clarify its purpose and justification particularly in the face of adverse environmental contexts. After providing a review of literature on creation of a new enterprise, sensemaking and inductive reasoning, we use a narrative case study methodology to present the story of a small enterprise located in Peshawar Pakistan. Through the perspective of a female entrepreneur interpretations and details of her work, her struggles and her views about her enterprise are provided. By presenting this case we argue that inductive reasoning by the entrepreneur is shaped by three determinants. These include conceptualizing the opportunity through a narrative on the wider norms and values of the society and the entrepreneur's role within the society. Secondly, rationalizing the opportunity through a narration of personal life and events before and after the enterprise was created. Thirdly, using analogies or metaphors in the form of drivers influencing the new enterprise and how the entrepreneur has or is managing them.
Keywords: 'Inductive Reasoning'; 'Analogy'; 'Metaphor', 'Sensemaking'


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