FINANCE FOR ENTREPRENEURS

Entrepreneurial capitalism, the system of markets characterized by the shift from industrial and labour capital to intellectual capital, has given a significant economic impetus to technopreneurship in Singapore and the region. This will drive the formation of new technology-related businesses by individuals who can recognize, create and seize opportunities by bringing their innovations to market.
 

This series of learning materials aim to give entrepreneurs an understanding of finance issues and financial concepts associated with opportunity evaluation and new business formation. It hopes to enhance entrepreneurs’ knowledge and use of financial analytical tools involved in business evaluation and understanding of financial statements. Entrepreneurs should then be able to:

  • Understand how business decisions and market events affects cash flow, profits and financial position of a business
  • Analyze financial performance of business units
  • Improve business planning and evaluate forecasts of sales, expenses and income
  • Evaluate the value and financial viability of business opportunities
Further, the materials also examine issues in merger and acquisition finance, including pricing, structuring and financing options. Entrepreneurs will also become aware of the value activities in venture capital investments (which has provided significant financing to technology-related business formation and development) and typical venture capital process, investment capital structure, documentation, including term sheets.
 
Specifically, you may find these subject areas in the sub-sections as follows:

The publications listed below are the sources of some of the learning materials. They provide useful material for those interested in additional understanding:  

Edward Davis and John Pointon, Finance and the Firm, Oxford University Press, 1990

Peter Boer, the Real Options Solution – Finding Total Value in a High-Risk World, John Wiley & Sons, 2002

John A. Tracy, How to Read a Financial Report – for Managers, Entrepreneurs, Lenders, Lawyers and Investors, Sixth Edition, John Wiley & Sons, 2004

Pamela P. Peterson & Frank J. Fabozzi, Analysis of Financial Statements, 2nd Edition, Wiley Finance, 2006

NASBIC Layman’s Guide to Legal Aspects of Venture Investments, National Association of Small Business Investment Companies & Venture Capital Institute, 1996
 
Should we use the company-wide cost of capital in investment decisions? Theory & Practice in Capital Budgeting, Edouard Delom De Mezezac, HEC Paris, 2006
 
Learning materials prepared by the Centre for International Education in Economics, School of Oriental and African Studies, Unitversity of London