Entrepreneurial Financial Management C, 7,5 hp

Innehåll

The course Entrepreneurial Financial Management will be focused on financial management within entrepreneurial firms (EF). An entrepreneurial firm is a young, high growth business, usually with a new technology focus. Entrepreneurial firms differentiate themselves from other forms of organizations through being more innovative, flexible, and adaptable. In this course, these firms will be examined
at all phases of their life cycles, from initial idea generation to the ultimate harvesting of the venture. The main objective for offering the course is to provide students with an integrated set of concepts and applications drawn from entrepreneurship, finance, and accounting, that will provide a higher understanding of the financial environment in which these firms exist. Taking this course will develop students’ skills in building useful financial management spreadsheet models (e.g. financial forecasts and valuation models) in Excel. The student will also be introduced to current research in the field of entrepreneurial financial management.

The course is divided into five parts:

1. Introduction to the field of entrepreneurial finance. Concepts of entrepreneurship and finance will be discussed. Particular emphasis will be laid on the difference between entrepreneurial finance and corporate finance. An overview of the subject of entrepreneurial finance also will be presented.

2.  Determining financing needs and building financial forecasts. This second part of the course will start by exploring the financial goals and the financial statements of an entrepreneurial firm. After that the focus will be on building integrated financial forecasting models (forecasting cash flows, revenues, expenses etc).

3.  Managing financial resources. This third part of the course will focus on managing and monitoring the different financial resources of an entrepreneurial firm. Both the managing and monitoring of internal (e.g. bootstrapping techniques) and external (debt and equity) sources will be covered. Attention will also be paid to day-to-day cash flow management. Students will also be presented with information on aspects of private equity markets surrounding entrepreneurial ventures (e.g. business angles, venture capital firms).

4.  Valuation. Value is one of the fundamental concepts of finance. In the fourth part of the course, students’ previous knowledge of valuation procedures will be expanded to include the problems attached to valuing firms in early stages of their life cycle.

5.  Harvesting. All entrepreneurs need to consider harvesting their investment (exiting the venture) at some point. This final part of the course investigates various forms of harvesting, for example, initial public offerings (IPOs) or acquisitions. The emphasis is on assessing whether the entrepreneurial firm is "ready" for harvesting. In addition, we will also discuss at the structural, legal, and dynamic issues of various forms of harvest.

Förväntade studieresultat

After completing this course, the students should be able to:

• explain the concepts of entrepreneurial finance and its difference to traditional corporate finance
• determine the financing needs of an entrepreneurial firm
• demonstrate basic skills in building financial forecasts in Excel for an entrepreneurial firm
• explain how different financial resources of an entrepreneurial firm are managed and monitored
• demonstrate understanding and skills in issues related to the sale of an entrepreneurial firm
• analyze and discuss current research issues in entrepreneurial finance

Behörighetskrav

Univ: Företagsekonomi B, 30 hp, eller motsvarande. Gymnasium: Engelska B.

Undervisningens upplägg

This course takes the form of lectures, discussions, exercises and cases. The core topics of the course will be covered by lectures, seminars and case studies. The students might also meet guest lecturers whose presentations will be examinable. On several occasions, students will be asked to make oral and written presentations of assignments, case studies and term papers. They will be expected to take an active part in classroom discussions, seminars and case studies. Students must be prepared to do a significant amount of work outside the class room in order to fulfill course requirements.

Examination

Examination is based upon a written comprehensive individual exam and group assignments. A passing grade is required for each part.

The following grading system will be used:
Pass with distinction (Väl godkänd, Vg, 75% or more),
Pass (Godkänd, G, 50% or more)
Fail (Underkänd, U, less than 50%).

In order to pass the course, the student must complete all parts of the examination i.e. reach 50% of the points of each part. To receive the grade pass with distinction, the student must reach at least 75% of the total points on the course.

Students who fail to present a photo ID at the occasion of a written examination cannot have their results registered.

In case of failure on seminar participation or individual and group assignments, compensating assignments must be completed in accordance with instructions given, no later than two weeks after the completion of the course.

Students who do not pass at the time of the normal written examination will be offered an opportunity to sit a further examination within a month. Beyond that, additional examination opportunities normally arise every academic year, one week prior to the start of the autumn term.

When a student has failed an examination on two occasions, he or she has a right to have another grading teacher. A written request for an alternative examiner should be handed to the director of studies no later than two weeks before the next examination opportunity.

Rules and regulations concerning the production of academic texts and correct referencing will be applicable to all written assignments. (see instructions in the Thesis manual. Thesis writing in Business Administration.) Urkund records may be used for control.

Lectures are normally not obligatory. However attendance is expected because the lectures are designed to facilitate students towards achieving course specific learning objectives. In addition lectures often provide insightful explanations of, and can supplement and provide contrast to, the course litterateur and other relevant course materials.

Student who has passed an examination cannot redo the examination to get a higher grading.

Grades on the course are awarded when students have passed all examinations and compulsory course elements.

Academic credit transfer
Academic credit transfers are according to the University credit transfer regulations.

Övriga föreskrifter

This is a course at the C-level in a BSc-degree at Umeå University. The course can also be included in study programs in Business Administration and Economics at Umeå School of Business and Economics.