HBN211N NEW VENTURE FINANCE
Lecture 1. Introduction and Overview of NVF
Lesson Plan
• Introduction – 10 minutes (2.30pm – 2.40pm)
• Unit overview – 30 minutes (2.41pm – 3.10pm)
– Objectives
– Learning methods
– Assessment
– Course materials
– Recommendations
• Break – 10 minutes (3.11pm – 3.20pm)
•New Venture Finance – overview -65 minutes (3.21pm
– 4.25pm)
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INTRODUCTION
• Me:
– Personal
– Education
– Professional
• Now you:
– Background (personal , professional)
– Entrepreneurship goals
– What you want from this class
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MY BACKGROUND- EDUCATION AND WORK
Education
B.S.S in Economics (Hons.)
 Chittagong University, Bangladesh.
 M. S.S in Economics
 Chittagong University, Bangladesh
 Master (by research, FBA)
 National University of Malaysia
 Ph.D (FBA)- 2003
 National University of Malaysia
Positions:
 Lecturer: Faculty of Business Administration, Universiti Tun Abdul
Razak,
 Research Assistant: National University of Malaysia and
International Islamic University of Malaysia
 Research Officer: RMIT University, Australia
 Lecturer, SWIN (current)

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MY BACKGROUND- R
ESEARCH
Publications
 Journal Publications
 Published/accepted: 12
 In progress: 5
 Conference papers: 8
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MY TEACHING AT SWIN
STUDENT EVALUATION (Business Modeling and
Analysis): SEMESTER 2, 2010
A. 88% students agreed that Mr. Islam has a thorough knowledge of the unit.
B. 88% students agreed that Mr. Islam has responded helpfully to questions
C. 88% students agreed that Mr. Islam has made the requirements for assessment
clear
D. 88% students agreed that Mr. Islam showed genuine concern for students
E. 88% students agreed that Mr. Islam used real world examples in his teaching
F. 75% students agreed that Mr. Islam communicates information and ideas clearly
and effectively.
G. 75% students agreed that Mr. Islam has encouraged me to develop analytical
skills
H. 63% students agreed that Mr. Islam taught in a way that provides motivation and
inspiration to learn.
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BAR Chart
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STUDENT EVALUATION: SEMESTER 2, 2010 (Cont.)
Student Comments:
1. One thing that i like the most of sir Mazharul Islam is that he always
keep the student's level of understanding in mind and he teaches
accordingly but that doesn't means that the rest of the teachers don’t
keep this thing in mind
2. He was a good teacher, but somehow his accent is bit difficult to be
understood. He tries his best to explain the material, but somehow, i
think he needs to prepare more so that he wont give any misleading
information
3. Sometimes I feel difficult to understand his speaking although this is not
his fault. His explanation is not clear, may be this is the problem of
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myself.
ACTION PLAN
– Redesign the lecture/tutoring materials (with real world examples,
work example and video clips).
– To avoid difficulties of understanding of my speaking, I will speak
slowly, I will repeat explanation if needed, I will not go further until
you understand everything, we do interactive session for better
understanding, I will gradually grab Australian pronunciations.
– Conduct a mid-semester class survey
– Follow up discussion at every Monday and Friday from 11.30am
to 1.00pm
– Introduced class tests in place of few assignment to make the
requirement for assessment clear.
– To provide global example and practices, I will Link the lecture
content with latest research
– Real life assignment/project
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Unit Overview - Objectives
• Develop an effective sustainable business plan for a new
venture.
• Construct and analyse a precise business model for a new
venture.
• Assess the timing and amount of financial needs.
• Estimate risks and expected returns
• Evaluate alternative new venture strategies (e.g. equity vs. debt)
and determine the valuation of a venture.
• Understand the institutions and sources of finance for new
venture.
• Build pro forma financial statements based on sound
assumptions and perform sensitivity analysis.
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Unit Overview - Learning Methods
• Lectures (interactive)
• Tutorials
– Group work
– Case(s)
– video(s)
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Unit Overview - Assessments
• Individual assignments
– Participation (5%)
– Class test (25%)
– final exam (30%)
• Group assignments
– Poster presentations (Develop analytical skills)
– Group presentations (20%)
– Written report (20%)
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Unit Overview - Course Materials
• Recommended textbook
Bygrave, B & Zacharakis A (2008), Entrepreneurship, 2nd
Edition, Hoboken, NJ, Wiley & Sons.
Recommended Readings:
–
Stevenson, H.H. et al. (2007). New Business Ventures
and
the Entrepreneur, Sixth Edition, New York, NY, McGrawHill/Irwin.
–
Ross, Stephen A. et al. 2008. Essentials of Corporate
Finance, McGraw-Hill Irwin, Sydney, Australia.
• Blackboard: Content under ‘Learning Material’
–
Lecture slides (On Blackboard one week before lecture)
–
Tutorial content (e.g. Case studies)
• External links on Blackboard
–
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Recommendations
Individual
• Read any assigned readings
before the lecture or tutorial.
• Attend and participate in all
lectures and tutorials.
• Take notes and ask questions.
• Attempt to do coursework
ahead of time and ask for help if
needed.
• Apply what you are learning as
much as possible in every steps
of your life.
Group
• Study in groups outside of class.
• Hold regular meetings when
everyone can attend.
• Critically analyse content, not
individuals.
• Elect a group member to edit the
written report and slideshow for
spelling, grammar, flow, etc.
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Objectives of today’s session
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Importance of NVF
Definition of entrepreneur and entrepreneurship
Characteristics found in successful entrepreneurs
Business and social entrepreneurs
Entrepreneurs and small-business owners
Different types of risk entrepreneurs face
Major causes of stress and the ways entrepreneurs can
handle stress
• Sources of finance for NV
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Importance of NVF course
55% business fail within 5 years Understanding of NVF will helps
• To make better decision
• To examine whether expected return is high enough to cover
opportunity costs
• To make effective sustainable business plan
• To develop precise business model
• To build financial statement
• To measure risk and return
• To assess your original decision to enter whether you should
continue or abandon.
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Who is an entrepreneur?
‘A person who habitually creates and innovates to build
something of recognised value around perceived
opportunities.’
Bolton & Thompson, 2000
Entrepreneur is an innovator or developer who recognizes and
grabs opportunities; convert those opportunities into
marketable ideas; adds value through time, effort, money and
skills and assumes the risks of the competitive marketplace to
implement these ideas. Entrepreneur also called catalyst of
economic change (Latest definition: Frederick& Kuratko
2010)
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Business and social entrepreneurs
… are different!
Business entrepreneurs:
-are driven by the profit motive.
-seek growth and profits within the business.
-are constant innovators
-always are trying to capture larger market shares in the
competitive marketplace.
-always exploit innovative venture opportunities and create
new market at home and abroad.
Social entrepreneurs:
-are driven by a mission to improve society
-seek to find innovative ways to solve problems that can’t be
addressed by either the market or the public sector.
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Entrepreneurs and small businesses
… are also different!
Small business owners often:
-operate in existing markets and never grow large
-prefer a more stable and less aggressive approach
to running these business.
-Would rather exploit established markets
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Characteristics of entrepreneurs
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Have a clear vision (Know where they want to go).
Keep driving in pursuit of his/her goal and grow.
Spot and Exploit Opportunity (Constant awareness of the opportunities that exist in everyday life).
Don’t try to be all things, be famous for just one thing
Uniquely optimistic, committed, and dedicated (these can help entrepreneurs to overcome obstacles and
setbacks. Investors can measure these quality levels by willingness to mortgage their house, take a cut in
pay, sacrifice family time and reduce their standard of living).
Willing to take risks in order to create value (But they are not gamblers. They do everything to get the odds
in their favour).
Works creatively and innovatively to establish new resources or endow old ones with a new capacity
Do everything for the purpose of creating wealth.
Use sound judgement and planning.
Strive for integrity and reliability (these two qualities are the glue and fibre that bind successful personal
and help to build and sustain the trust and confidence).
They use failure as a tool for learning (failure for them is a learning experience that will enable them to be
even better. They don’t become disappointed, discourage, or depressed by a setback or failure).
High tolerance of ambiguity (Uncertainties are of no concern to them).
Have enough confidence in themselves (they don’t believe the success or failure of their venture will be
governed by fate, luck, or similar forces. They believe these things happen due to their own actions).
Seeking and using feedback (They have a strong desire to know how well they are doing and how they
might improve their performance. Feedback is also central to their learning from their mistakes and
setbacks).
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Taking initiative and personal responsibility (They always like to take the initiative in solving problem and
Entrepreneurship
– A dynamic process of vision, change and creation
– Application of energy and passion
– Towards implementation of new ideas and creative
solutions
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Why be an entrepreneur?
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Entrepreneurs and risk
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Sources of stress
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Questions on Video Clip
1. What challenges the Entrepreneurs face in getting fund from
traditional sources especially during financial crisis and why?
2. What has been suggested by speaker to resolve this crisis?
3. What are the alternative sources funds Entrepreneur look into, why?
4. Are the situations similar in Australia?
5. What is the overall learning from the survey results reported in the
video?
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Sources of funding
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The circle of life
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