Postgraduate Course: Entrepreneurial Finance (CMSE11304)
Course Outline
| School | Business School |
College | College of Arts, Humanities and Social Sciences |
| Credit level (Normal year taken) | SCQF Level 11 (Postgraduate) |
Availability | Not available to visiting students |
| SCQF Credits | 15 |
ECTS Credits | 7.5 |
| Summary | This is a compulsory course for the MSc in Entrepreneurship and Innovation. It provides you with a clear understanding of issues associated with the financing and financial performance of new ventures as they develop. In particular, you will gain an understanding of the financial fundamentals of new venture financing, how to assess financial performance and how finance needs change as the business develops through to exit. |
| Course description |
The market for entrepreneurial finance is opaque. Start-ups and scaling businesses often have limited financial information, short operating histories and little available capital. Their operations and chances of success are often highly uncertain. Consequently, it is difficult for outsiders to evaluate start-up and scale up prospects. For entrepreneurs, the supply of entrepreneurial finance is also opaque and can be difficult to acquire. This course provides a solid practical and theoretical grounding in entrepreneurial finance. Although no prior knowledge of entrepreneurial finance is expected, you will gain a practical insights into the fundamentals of new venture financial statements (income, cashflow, balance sheet) and techniques for evaluating the performance of start-ups and growing firms.
You will also be able to understand and appreciate how entrepreneurial financing changes as start-ups evolve over time. This involves developing insights into what role different funders such as debt (e.g. banks), equity (business angels and venture capitalists) and crowdfunders play in supporting developing new ventures. Integral to this is developing an understanding of how entrepreneurs and financiers overcome the opaqueness of entrepreneurial financing, how growing firms are valued, and what are the likely exit strategies facing entrepreneurial firms.
The course begins by situating and contextualising the market for entrepreneurial finance. Through subsequent lectures, workshops, guest speakers and case study sessions, you will build on this to work in groups to develop a financial plan and performance assessment for a new start-up. Again through a mix of lectures, workshops involving guest speakers and case study sessions, you will learn about the main sources of entrepreneurial finance and why some - but not all - entrepreneurs seek external finance. In this journey, you will also learn about how businesses are valued, and how they are harvested. For your individual assignment, you will be expected to reflect critically on the market for entrepreneurial finance.
Lectures; seminars/workshops.
Independent preparatory reading for lectures.
The course primary objectives are to develop:
Financial statement literacy
An appreciation of financial performance
A critical understanding of entrepreneurial finance markets
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Course Delivery Information
| Not being delivered |
Learning Outcomes
On completion of this course, the student will be able to:
- Understand the key financial statements (Profit & Loss, Balance Sheet and Cash Flow) and be able to prepare financial forecasts for a new start up
- Evaluate the financial performance of a new start up
- Critically appraise the market for entrepreneurial finance as a business grows
- Understand typical funding sources; the development of business presentations to attract outside funding; the due diligence process; and the strategies for negotiations for funding
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Reading List
Greene, F.J. (2020) Entrepreneurship Theory and Practice, Red Globe Press.
Vega, G. and Lam, M.S. (2015) Entrepreneurial finance: Concepts and cases. Routledge.
Atrill, P. McLaney, E. (2018) Accounting and Finance for Non-Specialists, Pearson.
Hulme, S. and Drew, C. (2020) Entrepreneurial Finance, MacMillan International - Red Globe Press.
Klonowski, D, (2015) Strategic Entrepreneurial Finance: From Value Creation to Realization, Routledge.
Alhabeeb, M.J. (2015) Entrepreneurial Finance: Fundamentals of Financial Planning and Management for Small Business, Hoboken. |
Additional Information
| Graduate Attributes and Skills |
Cognitive Skills
After completing this course, students should be able to:
Be self-motivated; curious; show initiative; set, achieve and surpass goals; as well as demonstrating adaptability, capable of handling complexity and ambiguity, with a willingness to learn; as well as being able to demonstrate the use digital and other tools to carry out tasks effectively, productively, and with attention to quality.
Understand how to manage and sustain successful individual and group relationships in order to achieve positive and responsible outcomes, in a range of virtual and face-to-face environments.
Communication, ICT, and Numeracy Skills
After completing this course, students should be able to:
Convey meaning and message through a wide range of communication tools, including digital technology and social media; to understand how to use these tools to communicate in ways that sustain positive and responsible relationships.
Critically evaluate and present digital and other sources, research methods, data and information; discern their limitations, accuracy, validity, reliability and suitability; and apply responsibly in a wide variety of organisational contexts.
Knowledge and Understanding
After completing this course, students should be able to:
Demonstrate a thorough knowledge and understanding of contemporary organisational disciplines; comprehend the role of business within the contemporary world; and critically evaluate and synthesise primary and secondary research and sources of evidence in order to make, and present, well informed and transparent organisation-related decisions, which have a positive global impact.
Identify, define and analyse theoretical and applied business and management problems, and develop approaches, informed by an understanding of appropriate quantitative and/or qualitative techniques, to explore and solve them responsibly. |
| Keywords | EI-EF |
Contacts
| Course organiser | Prof Francis Greene
Tel: (0131 6)50 3798
Email: |
Course secretary | Miss Lauren Millson
Tel: (0131 6)51 3013
Email: |
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