Introductory description

During the module we will look at issues affecting finance markets for new ventures and small firms. These 'entrepreneurial' firms are typically informationally opaque and therefore face greater challenges in accessing finance than established firms. We will look at issues affecting the supply of entrepreneurial finance, e.g., credit rationing and equity gaps, and issues affecting demand, e.g., control aversion and entrepreneurial over-optimism.

There are three key stakeholder groups in entrepreneurial finance: entrepreneurs who want money to fund their ideas; finance providers (venture capitalists, angels, and banks) who want to make money from funding entrepreneurs; and governments, who want entrepreneurs to create jobs and introduce innovation. The module therefore approaches entrepreneurial finance issues from the perspectives of entrepreneurs, finance providers, and governments.

This is an elective module available for WBS and non-WBS students. To find detailed availability and to apply for this module, log in to my.wbs.ac.uk using your normal IT login details and apply via the my.wbs module application system. Once you’ve secured a place on my.wbs you should apply via your home department’s usual process, which usually takes place via eVision.

Note that you do not require the module leader’s permission to study a WBS module, so please do not contact them to request it.

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.

1. Introduction to Entrepreneurial Finance Markets

2. The Role of SMEs in Contexts of Economies

3. Financing and its Role in the Entrepreneurial Journey

4. Signals in Entrepreneurial Finance

5. On the Role of Banks and Governments in SME Financing

6. Inequalities in SME Financing Markets

7. Venture Capital, Business Angels and Private Equity: On the Players in the Game

8. Alternative Forms of Venture Financing

9. Exits (e.g. IPOs, M&A, management buyouts, liquidation).

10. Summary, Recap, and Reflection

Learning outcomes

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

• Discuss and evaluate the relevance of different sources of finance for the creation and performance of new ventures.
• Explain the relevance of entrepreneurial ventures for low-, middle- and high-income economies.
• Identify sources of finance available e.g. crowdfunding, bank loans, venture capital and business angels and critically evaluate these.
• Recognise and question inequalities in venture financing and employ strategies to address them.
• Apply theoretical frameworks and empirical evidence to evaluate case studies of entrepreneurial finance challenges.
• Recall and select relevant information.
• Demonstrate analytical and logical reasoning abilities.
• Evaluate information and draw a valid conclusion.
• Examine issues from different perspectives.

Indicative reading list

Reading lists can be found in Talis

Research element

Students critically engage with empirical research throughout the module, and apply research-based insights to case studies in the seminars. The group presentation requires original research, e.g., on specific funding sources, with data-driven financial projections.

Interdisciplinary

The module’s principal disciplinary foundation are management and finance. We draw on economics (e.g., signaling theory, information asymmetries), psychology and sociology (e.g., role of cognition, network effects, inequalities), and development studies (cross-country comparisons) to develop a holistic understanding of entrepreneurship and entrepreneurial finance markets.

International

The module adopts a comparative international perspective throughout, examining entrepreneurial finance markets across low, middle, and high-income economies. We will consider, for example, cross-country variations in entrepreneurship rates and types and entrepreneurial finance ecosystems.

Case studies feature ventures and finance providers from diverse international contexts, enabling students to understand how institutional, cultural, and economic contexts shape entrepreneurship and entrepreneurial finance markets.

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 and equity applications.

• Apply this specific knowledge and utilise these specialist skills in a direct and practical manner.

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.

• Design, evaluate and present entrepreneurial a financing strategies based on the concepts/content/research discussed in the lecture.