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:
Current from: 2020/1

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:

Intended 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. < /p>

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 entrepreneurship ecosystems


• the role of Entrepreneurial Finance in the process of entrepreneurship


• the 'the market for finance' and how accessing different funding actually works?


• 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 e ntrepreneurship 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 eva luate 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

Summative assessment- Examinations:

Summative assessment- Coursework and in-class tests:

One individual task of 2,000 words, covering a major area in the syllabus (30%).

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

A two hours 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 

Assessment requirements for a pass:

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

Reassessment arrangements:

By Examination only (During the August University Resit Period)

Additional Costs (specified where applicable):

Last updated: 27 August 2020