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:
Current from: 2019/0

Module Convenor: Dr Maksim Belitski

Email: m.belitski@reading.ac.uk

Type of module:

Summary module description:

Why do entrepreneurs often fail to enter a market? Entrepreneur with innovative products often find access to finance and sharing equity problematic. This module introduces students to the various forms of financing for entrepreneurship as a process of entrepreneurship (e.g. debt, equity financing, non-for-profit and alternative financing). It introduces an entrepreneurial ecosystem approach , entrepreneurial planning, and strategies to finance new ventures. 


Aims:

Using the entrepreneurial ecosystem approach and entrepreneurship process, the module will critically examine the nature, role and importance of different sources of finance for entrepreneurial ventures, strategies and business planning to raise finance at different stages of firm 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 theory, process and practice of entrepreneurial activity and entrepreneurial finance. 



Assessable learning outcomes:



 



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 the theory and the process of entrepreneurship



- the role of Entrepreneurial Finance in the process of entrepreneurship



- developing an entrepreneurial plan and strategies for finance 



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



- Debt finance: Government, Banks 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 and imperfect information 



- Investment decision making under uncertainty



- Initiating entrepreneurial venture and funding it



 



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


Global context:

The course uses the synergised approach adopted by Henley Business School, University of Reading and Kelley Business School, Indiana University Bloomington. 


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
Seminars 3
Project Supervision 2
Guided independent study:      
    Wider reading (independent) 90
    Wider reading (directed) 25
    Advance preparation for classes 40
    Preparation for presentations 10
    Essay preparation 10
       
Total hours by term 200 0 0
       
Total hours for module 200

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

Summative assessment- Examinations:

Summative assessment- Coursework and in-class tests:

One individual task of 2,500 words, covering a major area in the syllabus (50%) due in week commencing 18 November 2019 (Week 8 of Autumn Term).



One group presentation of 10 min on a case study covering a major area of entrepreneurship process of equity crowdfunding and financial analysis (50%) in week commencing 9 December 2019 (Week 11 of Autumn Term).


Formative assessment methods:

Verbal feedback will be provided during lectures and tutorials.


Penalties for late submission:
The Module Convener will apply the following penalties for work submitted late:

  • where the piece of work is submitted after the original deadline (or any formally agreed extension to the deadline): 10% of the total marks available for that piece of work will be deducted from the mark for each working day[1] (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.

    Assessment requirements for a pass:

    A weighted average mark of coursework and presentation of 50%.


    Reassessment arrangements:

    Resubmission of the individual essay 


    Additional Costs (specified where applicable):

    Last updated: 8 April 2019

    THE INFORMATION CONTAINED IN THIS MODULE DESCRIPTION DOES NOT FORM ANY PART OF A STUDENT'S CONTRACT.

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