MMM094-Financing for Entrepreneurship

Module Provider: Leadership, Organisations and Behaviour
Number of credits: 20 [10 ECTS credits]
Level:7
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 introduces students to the various forms of financing for entrepreneurship (e.g. debt, equity financing, non-for-profit and alternative financing) and introduces an entrepreneurial ecosystem approach to demonstrate how entrepreneurs can act to attract finance to pursue profitable opportunities. 


Aims:

Using the entrepreneurial ecosystem approach, which refers to the system of social and economic incentives created by various economic agents, and affecting the entrepreneur decision-making (Mason and Brown, 2014), the module will critically examine the nature, role and importance of different sources of finance for entrepreneurial ventures, assess their availability, 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. 



Apply theory to create a crowdfunding pitch for angel investors, venture capitalists, private equity and other ecosystem stakeholder. 



Analyse a firm’s financial statements, including the use a comprehensive set of financial ratios, to evaluate a company’s performance to conduct a cash flow analysis and a project appraisal.



Assess and compare the stakeholders and resources within the entrepreneurial ecosystem of a region / country in order to decide on the market making strategies and access to financial resources.  


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 Ecosystem, stakeholders and the role of Entrepreneurial Finance 

- Corporate VCs, Business Angels and Venture Capital as a source of entrepreneurial finance

- Government and Universities as a source of entrepreneurial finance 

- ‘Alternative’ forms of financing, including peer-to-peer lending, B-to-B lending, equity and reward based crowdfunding.

- Investment decision making in markets with perfect information when successful entrepreneurs need to demonstrate good judgement in making risky innovations according to assumptions on costs, revenues and profit margins known as “Casson’s synthesis” (Casson (1997).

- Investment decision making under uncertainty

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


Global context:

The course uses cross-country comparisons of entrepreneurial finance which makes the outcomes generalizable for both developed and developing countries.


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’ contributions to discussions during these sessions are welcomed in order to promote knowledge exchange of relevant work experiences. 

Seminars will incorporate individual cash flow and investment appraisal analysis; group work and presentation on a case study with calculation and a comprehensive set financial analyses 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 127 50
       
Total hours by term 150.00 50.00
       
Total hours for module 200.00

Summative Assessment Methods:
Method Percentage
Written exam 50
Written assignment including essay 30
Oral assessment and presentation 20

Other information on summative assessment:

One individual task of 2,500 words, covering a major area in the syllabus (30%).



One group presentation of 10 min on a case study covering a major area of equity crowdfunding and financial analysis (20%).



Written closed book exam (50%)


Formative assessment methods:
Verbal feedback will be provided during lectures and tutorials.

Penalties for late submission:

Penalties for late submission on this module are in accordance with the University policy. Please refer to page 5 of the Postgraduate Guide to Assessment for further information: http://www.reading.ac.uk/internal/exams/student/exa-guidePG.aspx

Penalties for late submission on this module are in accordance with the University policy. Please refer to page 5 of the Postgraduate Guide to Assessment for further information: http://www.reading.ac.uk/internal/exams/student/exa-guidePG.aspx

Length of examination:
2 hours

Requirements for a pass:
A weighted average mark of coursework and examination of 50%.

Reassessment arrangements:
Examination in September.

Last updated: 4 September 2017

Letter 'IPO.MODCAT1STKT' - Generation started at 04/Sep/2017 16:20:43.83.

Things to do now