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Entrepreneurial Finance: Opportunity Recognition, Evaluation & Resource Acquisition (4/25/2011 – 6/24/2011) Monday and Thursday, 1:30 – 3:20 Room C104 Instructor

: Richard Chan, PhD Office Hour: Wednesday 9am -11pm (4/25 ~ 5/13) or 10am -12pm (05/16 ~ 06/24) Office: C313 Email: Office Number: 0755-2661-7001

Required Text Bruce R. Barringer and R. Duane Ireland (2010). Entrepreneurship: Successfully Launching New Ventures (Third Edition). Prentice Hall. Course Overview Entrepreneurship is the study of new venture creation and management and it occurs in a myriad of ways depending on the interactions of the entrepreneur and the opportunity. This course module, Entrepreneurial Finance, provides an overview of the finance related issues of creating a business, ranging from opportunity recognition and evaluation to resource acquisitions. The course is designed to appeal to individuals with strong desires to become entrepreneurs, to join startup companies, or to work in the venture capital industry. The course objectives are threefold: 1) to develop a scientific understanding of entrepreneurial finance, the theoretical framework for that understanding, and the empirical evidence in support of theory; 2) to transform this scientific understanding to practice; and 3) to provide firsthand experience with startup ventures and entrepreneurial uncertainty. Course Outcomes    Knowledge to understand the entrepreneurial process: How to identify and pursue a business opportunity. Tools to analyze various challenges: How to define the fundamental issues of starting a business. How to assess a venture’s risks, problems, and rewards. Skills to bridge the gap between theory and practice: How to transform ideas into action items. How to learn from your peers and role models. How to design and execute strategies.

Richard Chan – Entrepreneurial Finance 2011

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The presentation should include but not be limited to the following items: 1) Introduction of the company and the business 2) The managerial issue and why it’s important 3) Analyses based on theories and models introduced in the chapter a. Your task is to read the case.Course Structure and Requirements This is a highly participative course. and I expect the same from you in class. and all team members will receive the same grade. too. Focus your analysis on the questions raised in the case b. I might ask you to review your team members' professionalism and contribution. must come to class prepared and motivated to learn. In the group presentation exercises you will apply what you are learning by analyzing realistic issues and managing team processes. You are encouraged to use resources OUTSIDE of the textbook. You. exercises. ALL team members should be actively involved in all processes. and reconcile these assessments with my own opinions to come up with a class participation grade. analyze it. and business partners. As an effective manager or entrepreneur in the working world. At the end of the module. to complete the assigned readings prior to each class. employers. You will be graded on the basis of individual and group performances. (2) Group Presentations (20%): Teamwork and presentations skills are essential for managers and entrepreneurs. Case Study Presentation (10%). it is important that you prepare for each class session. to me. To participate in class means to attend class regularly. means interacting with your peers in a constructive and respectful manner. as follows: (1) Class Participation (2) Group Presentation (3) Research Idea (4) Exams (5) Team Project 10% 20% 20% 30% 30% (1) Class Participation (10%): For you to benefit most from the lecture and discussion. and present your analyses to the class in a PowerPoint presentation. It does not mean "do not speak until spoken to…" or that you should not challenge my ideas or your peers’ ideas. You will be randomly selected to form a team of four (4) members to present and discuss at least one case study to the class (15 minutes). and I strive to make the discussions. To make these exercises more realistic. if you want to have an optimal learning experience. Use materials outside of the textbook to support and facilitate your analyses 4) Recommended solutions Richard Chan – Entrepreneurial Finance 2011 Page 2 of 5 . and to actively participate in class discussion in a professional and value-adding manner. Note that professionalism. part of your responsibility will be living up to the expectations of your peers. teams are expected to self-manage. and projects both engaging and interesting.

I will evaluate your final report based on effort/motivation. and the reasons for exit. Student Names in the Header). and 12-point font size). Limit your written interview report to two pages (double-spaced. and developing logical hypotheses. Student Name in the Header). This is a group assignment. (5) Team Project (30%): You will be randomly selected to form a team of upto four (4) members to prepare for the following tasks: Interviewing an Entrepreneur (5%): Interview an entrepreneur and assess the venture he or she has started. Get a comprehensive understanding of the venture creation process and the role played by personal agency. and persuasiveness. 12-point Times New Roman font. In this interview. how he or she recognized an opportunity to pursue. double-spaced. Student Name in the Header). 12 point Times New Roman font. The presentation should include but not be limited to the following items: 1) Key literature and theoretical background of the research question 2) Key argument and hypotheses made in the paper 3) Key research methodology used in the present study 4) Key findings 5) Differences from and/or consistency with the materials covered in the related textbook chapter. the factors that enabled the entrepreneur to grow the venture. You will be randomly selected to form a different team of four (4) members to present to the class an assigned academic paper (15 min). Richard Chan – Entrepreneurial Finance 2011 Page 3 of 5 . (3) Research Idea (10%): Complete and submit a brief research idea paper by the end of the class. The business idea page should not exceed two pages (1-inch margins. information. Questions are based on the assigned textbook chapter and the supplementary material presented in the class lectures. double-spaced. analyze it. Business Idea Page (5%): Each team will submit a memo (up to 2 pages) introducing an business idea and how each member will contribute to the group effort. to include identifying a focal question. The mid-term and final exams consist of a set of objective questions (multiple-choice and true/false questions) and short-answer questions.Academic Paper Presentation (10%). I recommend that you record the interview then transcribe it. highlight the entrepreneur’s background. 1-inch margins on all sides. (4) Mid-term & Final Exams (30%). doublespaced. logic. Your task is to read the academic paper. and present your analyses to the class in a PowerPoint presentation. ALL team members should be actively involved in all processes. The person your team interviews must have started his or her own business. There will be no makeup exam without written permission from the instructor. or been part of the founding team. Business Plan Final report (10%): Each team will submit a final report (up to 6 pages. providing a brief literature review. The research idea page should not exceed one page (1-inch margins. Success or failure of the venture is not important. 12-point Times New Roman font. Additional research about the topic is not required.

In this spirit. Richard Chan – Entrepreneurial Finance 2011 Page 4 of 5 . Seen this way. Entrepreneurship is more than just having a great idea.Business Plan Team Presentation (10%): Each team will present and provide its analyses of the opportunity it has been investigating throughout the term and offer a decision regarding to the future viability of the opportunity (approx. It is ultimately about convincing others. you are urged to think creatively and engagingly about your presentation. how entrepreneurs present themselves and their product/service is critical to their success. 15 minutes for the presentation and 10 minutes for Q&A). that your venture is seeking a value-creating opportunity and that your product/service will add value to their lives. especially holders of critical resources.

versus Nurture Shane. in press. 2008 Writing a business Plan Chapter 4. 2000. Porter. Shepherd. Building a new venture team Teams Venture Financing. Agarwal and Tripsas. & Webb. 22). Dual Process Developing an effective business Chapter 6. Effectuation 2010. P. Firm Valuation Chapter 8. 2004.1 to p. 2008. Case III Chapter 9 TBA. Bhide. 1997. 1994. 1999. 2003. 1985. TBA No reading assigned Interviewing an Entrepreneur Business Idea Page Interview with an Entrepreneur 06/13 *M Venture Finance: Venture Investment Decision Making Guest Speaker: (TBA) 06/16 Th Business Plan Final Report Research Idea 06/20 M Business Plan Presentation 1 06/23 Th Business Plan Presentation 2 06/27 Final Exam: Location TBA Note: Schedule is subject to minor changes. 1996 model/Midterm review Midterm No reading assigned Assessing a new venture’s financial strength and visibility. HBS Note # 9-805019. generating ideas: Cognition. Case II Recognizing opportunities and Chapter 2. & Sapienza. Chapter 10. 1992. Hsu. Petty.. Case IV De Clercq. 05/05 Th 05/09 *M 05/12 M 05/16 Th 05/19 *Th 05/23 M 05/26 Th 05/30 M 06/02 Th 06/08 *M 06/09 Th Who can be an entrepreneur: Nature Ireland.Class Schedule Date Day Topic Overview of course and syllabus. & Barley. Brinckmann et al. Case I The Entrepreneurial Process: Chapter 1 (p. Sahlman. 2007. Team Formation Online Survey. Roberts.23 to p. TBD. 2001 Feasibility analysis Chapter 3. 2006. Zhao & Seibert. why study this course? Introduction to Entrepreneurship Assigned Readings To be read prior to the session Assignment Timeline 04/25 M 04/28 Th 05/04 *W Chapter 1 (p. *Academic Journals Richard Chan – Entrepreneurial Finance 2011 Page 5 of 5 . 2006. Drucker. Emotion. 27) Planning & Execution versus Bhide. Khaneman. Sarasvathy. & Venkataraman. Industry and Competitor Analysis Chapter 5. Gruber.