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: 2023/4

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. 

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

Analyse a firm 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:

- Initiating entrepreneurial venture and funding it.

- Investment decision making in markets with perfect  information.

- Investment decision making under uncertainty.

- The role of Entrepreneurial Finance in the process of entrepreneurship.

- Developing an cost and benefits analysis and financial statements for business plan.

- Variety of finance - Equity Finance: Corporate VCs, BusinessAngels and Venture Capital as a source of entrepreneurial finance.

- Variety of 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.

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

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 November 24th 2023.

One group presentation of 10 min on a case study covering a major area of entrepreneurship process of equity crowdfunding, financial analysis and the perspective of commercialization of a product (50%) in week commencing 8 December 2023.

Formative assessment methods:

Verbal feedback will be provided during lectures and tutorials.

Penalties for late submission:

The Support Centres 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 (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: 30 March 2023