MM361: Financing Entrepreneurship

Module code: MM361

Module provider: Leadership, Organisations and Behaviour; Henley Business School

Credits: 20

Level: 6

When you'll be taught: Semester 1

Module convenor: Dr Maksim Belitski, email: m.belitski@reading.ac.uk

Pre-requisite module(s):

Co-requisite module(s):

Pre-requisite or Co-requisite module(s):

Module(s) excluded:

Placement information: NA

Academic year: 2024/5

Available to visiting students: Yes

Talis reading list: Yes

Last updated: 19 November 2024

Overview

Module aims and purpose

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 , and develops skills of cost-benefit analysis of a project and a financial appraisal of new ventures.

Module learning outcomes

By the end of the module, it is expected that students will be able to:

1. 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 financial project appraisal.
2. Assess and develop cost-benefit analysis for a short and long term which is part of the business model revenues and cost structure.
3. Apply theory to create a crowdfunding pitch for investors.

Module content

• Understanding the role of Entrepreneurial Finance in the process of entrepreneurship. - Initiating entrepreneurial venture and funding it.
• Using excel software for forecasting sales and for benchmarking your financial performance against market competitors.
• Developing an business plan and financial appraisal of the project.
• 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, initial coin offerings, cryptocurrencies.
• Investment decision making in markets with perfect and imperfect information.
• Ratio analysis , profit and losses analysis, financial reports.
• Planning Revenues and costs of business models , cost-benefit analysis in a long and short term.

Structure

Teaching and learning methods

The module will consist of lectures (10x2) and seminars (4x1). 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; cost-and benefit analysis, financial ratio analysis and analysing the balance sheets of companies. Group presentations 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. Course ends with a group presentation on the project of interest with financial assessment and submission of a group report.

Students are expected to read key references and to do a significant amount of independent research using the Internet, journals, and academic references.

Study hours

At least 24 hours of scheduled teaching and learning activities will be delivered in person, with the remaining hours for scheduled and self-scheduled teaching and learning activities delivered either in person or online. You will receive further details about how these hours will be delivered before the start of the module.

Please note the independent study hours above are notional numbers of hours; each student will approach studying in different ways. We would advise you to reflect on your learning and the number of hours you are allocating to these tasks.

Semester 1 The hours in this column may include hours during the Christmas holiday period.

Semester 2 The hours in this column may include hours during the Easter holiday period.

Summer The hours in this column will take place during the summer holidays and may be at the start and/or end of the module.

Assessment

Requirements for a pass

Students need to achieve an overall mark of 40% to pass this module.

Summative assessment

Penalties for late submission of summative assessment

The Support Centres will apply the following penalties for work submitted late:

Assessments with numerical marks

• 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 three working days;
• the mark awarded due to the imposition of the penalty shall not fall below the threshold pass mark, namely 40% in the case of modules at Levels 4-6 (i.e. undergraduate modules for Parts 1-3) and 50% in the case of Level 7 modules offered as part of an Integrated Masters or taught postgraduate degree programme;
• where the piece of work is awarded a mark below the threshold pass mark prior to any penalty being imposed, and is submitted up to three working days after the original deadline (or any formally agreed extension to the deadline), no penalty shall be imposed;
• where the piece of work is submitted more than three working days after the original deadline (or any formally agreed extension to the deadline): a mark of zero will be recorded.

Assessments marked Pass/Fail

• where the piece of work is submitted within three working days of the deadline (or any formally agreed extension of the deadline): no penalty will be applied;
• where the piece of work is submitted more than three working days after the original deadline (or any formally agreed extension of the deadline): a grade of Fail will be awarded.

The University policy statement on penalties for late submission can be found at: /cqsd/-/media/project/functions/cqsd/documents/qap/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.

Formative assessment

Formative assessment is any task or activity which creates feedback (or feedforward) for you about your learning, but which does not contribute towards your overall module mark.

Verbal feedback will be provided during lectures and seminars.

Reassessment

Additional costs