MM361-Financing Entrepreneurship

Module Provider: Leadership, Organisations and Behaviour
Number of credits: 20 [10 ECTS credits]
Level:6
Terms in which taught: Autumn term module
Pre-requisites:
Non-modular pre-requisites:
Co-requisites:
Modules excluded:
Module version for: 2017/8

Module Convenor: Dr Maksim Belitski

Email: m.belitski@reading.ac.uk

Summary module description:

Why do entrepreneurs often fail to enter a market? Entrepreneurs with innovative products often find access to finance and sharing equity problematic. This module takes students through the various forms of financing for entrepreneurship (e.g. debt, equity financing, non-for-profit and alternative financing), how entrepreneurs then attract finance to pursue profitable opportunities for their innovative products.


Aims:

Critically examine the nature, role and importance of different and non-traditional sources of finance for entrepreneurial ventures and assess their costs and benefits for an entrepreneurial firm at different stages of growth.


Assessable learning outcomes:

By the end of the module it is expected that the student will be able to: 



Demonstrate a critical understanding of theoretical and practice elements underpinning entrepreneurial finance. 



Construct a basic financial plan for entrepreneurial growth, based on appreciating the differences between angel investors, venture capitalists, private equity and IPOs.



Analyse a firm’s financial statements as a tool of financial analysis, including the use a comprehensive set of financial ratios to evaluate a company’s performance.



Be aware of the ethical concerns facing investors and entrepreneurs in open-ended contracts, with potential adverse selection effects and moral hazard, and possible strategies to enable potential financial programmes to overcome such conflicts of interest.


Additional outcomes:

Students will have to work both independently, and in groups, leading to the development of time-management and team working skills. Preparatory guidance and formative assessment will be provided for group work. Such skills are important for future employment and professional development.


Outline content:

- Introduction to Entrepreneurial Finance – concepts and importance



- Financial statements as a tool of financial analysis.



- Financial ratios to evaluate a company’s performance.



- Time value of money and investment decision appraisal



- Types of entrepreneurial finance: Internal and external financing; debt and equity financing 



- Introducing ‘boutique’ finance and private equity – ethical concerns and founders dilemma



- Investment decision under uncertainty



- Business Angels and Venture Capital – costs and benefits – ethical concerns



The module content is designed to provide a better contextualisation for ICM263 Venture Capital, which has a more technical approach


Brief description of teaching and learning methods:

The module will consist of lectures (10x2) and seminars (3x1). During this time the main topics on the syllabus are covered. Students are encouraged to actively participate in discussions during these sessions and share relevant work experiences. 

Tutorials will incorporate individual cash flow and investment appraisal analysis; group work and presentation on a case study with calculation and a comprehensive set of financial ratios working on balance sheets to evaluate a company’s performance. Seminars end with question and answer session. 

Students are expected to read key references and to do a significant amount of independent research using the Internet, journals, and academic references


Contact hours:
  Autumn Spring Summer
Lectures 20
Tutorials 3
Guided independent study 177
       
Total hours by term 200.00
       
Total hours for module 200.00

Summative Assessment Methods:
Method Percentage
Written assignment including essay 50
Oral assessment and presentation 50

Other information on summative assessment:

One individual essay of up to 2,000 words, covering a major area in the syllabus (50%).



One group presentation on a case study 10 min covering a major area of equity crowdfunding and balance sheet (50%)


Formative assessment methods:

Verbal feedback will be provided during lectures and tutorials.


Penalties for late submission:
The Module Convenor will apply the following penalties for work submitted late, in accordance with the University policy.

  • where the piece of work is submitted up to one calendar week after the original deadline (or any formally agreed extension to the deadline): 10% of the total marks available for the piece of work will be deducted from the mark for each working day (or part thereof) following the deadline up to a total of five working days;
  • where the piece of work is submitted more than five working days after the original deadline (or any formally agreed extension to the deadline): a mark of zero will be recorded.

  • The University policy statement on penalties for late submission can be found at: http://www.reading.ac.uk/web/FILES/qualitysupport/penaltiesforlatesubmission.pdf
    You are strongly advised to ensure that coursework is submitted by the relevant deadline. You should note that it is advisable to submit work in an unfinished state rather than to fail to submit any work.

    Length of examination:

    Requirements for a pass:

    A weighted average mark of individual essay and examination of 50%.


    Reassessment arrangements:

    Last updated: 25 May 2017

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