MMM094A-Financing for Creative Entrepreneurship

Module Provider: Henley Business School
Number of credits: 10 [5 ECTS credits]
Level:7
Terms in which taught: Autumn term module
Pre-requisites:
Non-modular pre-requisites:
Co-requisites:
Modules excluded:
Module version for: 2016/7

Module Convenor: Dr Maksim Belitski

Email: m.belitski@reading.ac.uk

Summary module description:

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•
- The different stages of growth of an entrepreneurial firm:
- Introducing ‘boutique’ finance and private equity – ethical concerns and founders dilemma
- Business Angels – costs and benefits – ethical concerns
- Venture Capital – costs and benefits – ethical concerns
- Initial Public Offerings – the traditional route to market
- Alternative models of leverage – 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 77
       
Total hours by term 100.00
       
Total hours for module 100.00

Summative Assessment Methods:
Method Percentage
Written assignment including essay 60
Oral assessment and presentation 40

Other information on summative assessment:
One individual essay of up to 2,500 words, covering a major area in the syllabus (60%).
One group presentation on a case study 10 min covering a major area of balance sheet and ratio analysis (40%).


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:
N/A

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

Reassessment arrangements:
Coursework and presentation resubmission in September.

Additional Costs (specified where applicable):
1) Required text books:
2) Specialist equipment or materials:
3) Specialist clothing, footwear or headgear:
4) Printing and binding:
5) Computers and devices with a particular specification:
6) Travel, accommodation and subsistence:

Last updated: 21 December 2016

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