Finance for entrepreneurship, innovation, and enterprise development
Module Summary
This module provides learners with a clear understanding of issues associated with the financing and financial performance of new enterprises as they develop. Learners will gain an understanding of the financial fundamentals of new enterprise financing, how to assess financial performance and how finance needs change as the enterprise develops.
Module Outline
LEVEL 7
University Credits 20
ECTS Credits 10
Module description
The market for entrepreneurial finance is not clear. New start-up enterprises often have limited financial information, short operating accounts, and little to no capital available. Their operations and chances of success are often highly uncertain. Consequently, it is difficult for outsiders to evaluate the prospects of start-up enterprises. For entrepreneurs, the supply of entrepreneurial finance is also not clear and can be difficult to obtain. This module provides a solid practical and theoretical grounding in entrepreneurial finance. Although no prior knowledge of entrepreneurial finance is required, learners will gain practical insights into the fundamentals of new enterprise financial statements (income, cashflow, balance sheet) and techniques for evaluating the performance of start-up enterprises and growing enterprises.
Learners will also be able to understand and appreciate how entrepreneurial financing changes as start-up ventures change over time. This involves developing insights into what role different funders such as debt (e.g., banks), equity (business angels and venture capitalists) and crowd funders play in supporting developing new enterprises. Integral to this is developing an understanding of how entrepreneurs and financiers overcome the lack of clarity of entrepreneurial financing, how growing enterprises are valued, and what are the likely exit strategies facing entrepreneurial enterprises.
The module starts by positioning and putting into context the market for entrepreneurial finance. Through a variety of successive lectures, guest speakers and case study sessions, learners will build on this to work in groups to develop a financial plan and performance assessment for a new start-up enterprise. Learners will study the main sources of entrepreneurial finance and why some – but not all – entrepreneurs seek external finance. In this journey, learners will also be taught how businesses are valued, and how they are developed. The individual assignment for learners, will expect learners to reflect critically on the market for entrepreneurial finance.
Delivery Period:
- Trimester 1
- Learning and Teaching activities Total Hours: 200
- (Lecture Hours 27, Seminar/Tutorial Hours 10, Module Level Learning and Teaching Hours 4, Directed Learning and Independent Learning Hours 159)
- Assessment
- Written Exam 0 %
- Coursework 100 %
- Practical Exam 0 %
- 50% coursework (individual) – assesses course
- Learning Outcomes 1, 2
- 50% coursework (individual) – assesses course
- Learning Outcomes 3, 4
- Feedback
- Formative: In-class tests will be conducted to support student learning particularly in terms of developing their financial literacy
- Summative: Feedback will be provided on the assessments.
Learning Outcomes
On completion of this module, learners will be able to: 1. Understand the key financial statements (Profit & Loss, Balance Sheet, and Cash Flow) and be able to prepare financial forecasts for a new start up enterprise. 2. Evaluate the financial performance of a new start up enterprise. 3. Critically appraise the market for entrepreneurial finance as a business grows. 4. Understand and appreciate business valuation and exit strategies.
Reading List
- Alhabeeb, M. J. (2014). Entrepreneurial finance: fundamentals of financial planning and management for small business. John Wiley & Sons.
- Atrill, P., & McLaney, E. (2018). Accounting and Finance for Non-specialists. Pearson Higher Ed.
- Bertoni, F., Bonini, S., Capizzi, V., Colombo, M. G., & Manigart, S. (2022). Digitization in the market for entrepreneurial finance: Innovative business models and new financing channels. Entrepreneurship Theory and Practice, 46(5), 1120-1135.
- Bonini, S., & Capizzi, V. (2019). The role of venture capital in the emerging entrepreneurial finance ecosystem: future threats and opportunities. Venture Capital, 21(2-3), 137-175.
- Cohen, L., & Wirtz, P. (2022). Decision-making style in entrepreneurial finance and growth. Small Business Economics, 59(1), 183-210.
- Hulme, S., & Drew, C. (2020). Entrepreneurial Finance. Bloomsbury Publishing.
- Klonowski, D. (2014). Strategic entrepreneurial finance: From value creation to realization. Routledge. 8. Lam, M. S., & Vega, G. (2020). Entrepreneurial finance: Concepts and cases. Routledge.
