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OEBU 2025A - Financing SME's and helping them grow Financing SME's and helping them grow

Type d'enseignement : Elective

Semester : Autumn 2017-2018

Number of hours : 12

Language of tuition : English

Pre-requisite

None.

Course Description

The course will survey SME's impact on growth, innovation and jobs to understand why helping SME's to obtain financing and promoting a growth friendly environment has gained such wide acceptance in the US and the EU. It will focus on the specific challenges faced by SME's to obtain financing and how public policies can help to overcome them. We will look at all the various sources of finance for SME's: bank loans, securitization, venture capital, growth capital, buy-outs and the stock market. We will discuss their importance for SME's and the policies that encourage their development. One session will also deal with the business environment for start-ups, entrepreneurship and innovation. For each policy tool we will discuss the challenges faced in terms of efficiency, minimizing market distortions and avoiding cronyism. The course is at the crossroads of applied finance and public policies.

Teachers

AUBERGER, Marc (managing partner of a private equity fund)

Pedagogical format

The course is based on case studies prepared by the students in the form of oral and power point presentations lasting 15/20 minutes. Reading material is provided for each case study and, in addition, students are encouraged to conduct their own research. Each case study will cover a specific challenge faced by SME's. Students are expected to explain the problem, present the policy tools and debate the pros and cons of the policy. Cases will cover the European Union and the US. Emphasis is on the student's ability to be analytical and concise. The professor, will load in the cloud a presentation presenting his view of the issues after each session.

Course validation

The case study will represent 50% of the grade, a short test during the last session 40% and participation during class the remaining 10%. The test will be based on the presentations loaded in the cloud by the students and the professor. The test is one hour with ten questions requiring short and concise answers.

Workload

6 seminars of two hours each (12h). Credits: 2.

Required reading

  • Annual reports of the EIB, EIF, french BPI
  • Restoring Financing and growth to Europe's SMEs. International Institute of Finance and Bain 2013
  • Small Business Act for Europe. European Comission
  • Website of the Banque Publique d'investissement
  • Action plan on building a capital market union. European Commission

Additional required reading

  • A more complete framework for SME finance. Berger and Udell Journal of banking and Finance 2006
  • Closing Gaps and moving up a gear : The next stage of venture capital in Europe. EVCA 2010
  • Government involvment in the venture capital industry. Gilles Duruflé.CVCA 2010
  • Where the jobs are. John Dearie and Courtney Geduldig 2013