Introductory description

N/A.

Module web page

Module aims

Outline syllabus

This is an indicative module outline only to give an indication of the sort of topics that may be covered. Actual sessions held may differ.

• The rise in the importance of entrepreneurship: entrepreneurial markets and the history of economic thought on entrepreneurship.
• The determinants of enterprise performance: theory and evidence on new venture start-up, survival, growth and exit.
• Investment finance for new ventures.
• What venture capitalists do and how they add value to ventures.
• How venture capitalists choose and evaluate business ventures.
• Why do governments intervene to address market failure in the provision of fmance for small firms? Is there a systemic market failure or is it restricted to 'groups' or 'types' of capital? What does government actually do?
• The impact of intervention by government: assessing the impact policy.
• Summary & course overview.

Learning outcomes

By the end of the module, students should be able to:

• Understand the role and impact of access to finance on the performance of new ventures.
• Appreciate the rise in the importance of entrepreneurial markets and the history of economic thought on entrepreneurship.
• Understanding core economics and financial economics relating to new venture performance.
• Identify the sources of finance available eg loans , the various equity markets and government funding for new enterprise andcritically evaluate these.
• Apply the analysis covered on the course to a number of genuine case studies.
• Ability to recall and select relevant information.
• Analytical and logical reasoning abilities.
• Ability to evaluate information and draw a valid conclusion.
• Ability to understand issues from different perspectives.

Indicative reading list

Amit, R., Brander, J. and Zott, C. (1998), Why do Venture Capital Firms Exist? Theory and Canadian Evidence, Journal of Business Venturing, 13: 441-466.
Audretsch, D.B, Baumol, W.J. and Burke, A.E. (2001), Competition Policy in Dynamic Markets, International Journal of Industrial Organization, 19: 613-634.
Audretsch, D.B. and Thurik, R (2003), The Emergence of the Entrepreneurial Economy, forthcoming in the International Journal of Entrepreneurship Education, May 2003.
Bhide, (2000), The Origin and Evolution of New Businesses, Oxford University Press, Oxford.
Bhide, (2000), The Origin and Evolution of New Businesses, Oxford University Press, Oxford. Gompers, P. and Lerner, J. (2002), The Venture Capital Cycle, MIT Press, Cambridge MA and London.
Cowling, M. and Clay, N. (1995) "Factors Influencing Take Up Rates On The Loan Guarantee Scheme", Small Business Economics, Vol.7: 141-152.
Gompers, P.A. (1996), Grandstanding in the Venture Capital Industry, Journal of Financial Economics, 43:133-156.
Gorman, M. and Sahlman, W.A. (1989), What do Venture Capitalists Do? Journal of Business Venturing, vol 4: 231-248.
Hellmann, T. (2002), A Theory of Strategic Venture Investing, Journal of Financial Economics vol 64: 285-314.
HM Treasury (2002) "Enterprise Britain: A Modern Approach to meeting the enterprise challenge", HM Treasury, Small Business Service, London Bank of England: Finance for Small Firms 2002.
Lerner, J. (1999), Government Venture Capital: The Long Run Impact of the SBIR Program, Journal of Business, Vol.72:285-318.
Macmillan, I.C., Zemann, L. and Subbanarasimha, P.N. (1987), Criteria Distinguishing Successful from Unsuccessful Ventures in the Venture Screening Process, Journal of Business Venturing, vol 2: 123:137.
Sahlman and Stevenson (1985), Capital Market Myopia, Journal of Business Venturing, vol 1: 7-30.
Schmitz, J.A. (1989), Imitation, Entrepreneurship and Long-run Growth, Journal of Political Economy, 97: 721-739.
Storey, D.J. (1994), Understanding the Small Business Sector, Routledge, London and New York.
Wallsten, S.J. (2000), The Effects Of Governments’ Industry RID Programmes On Private R&D: The Case Of The Small Business Innovation Research Program, Rand Journal Of Economics, Vol. 1, No.1, Spring 2000, Pp 82-100.
The course is also likely to use "The Venture Capital Cycle" by Paul Gompers and Josh Lerner, MIT Press, 2002, as a supplementary text

Subject specific skills

Analyse and evaluate the theory , evidence and practice relating to new venture financial markets.
Demonstrate a deep analytical understanding of how new venture financial markets operate.
Compare and consider how firms in the various financial sectors screen and evaluate new ventures for loan applications.
Provide financial screening and evaluation to a case study of a new venture.
Apply these specific knowledge and utilise these specialist skills in a direct and practical manner upon entering any of the new venture financial markets.

Transferable skills

Demonstrate written, mathematical and verbal communication skills.
Utilise and develop numeric and non-numeric skills.
Convey their understanding using an array of these forms of communication.