Skip to main navigation menu Skip to main content Skip to site footer

Online financial calculator as a microlearning tool for entrepreneurs in business modelling

Abstract

Objective: The article aims to present the opportunities of the practical use of an online financial calculator considered as an improvement when compared to already existing tools and as a supplement to Osterwalder and Pigneur’s business model canvas. It facilitates the calculations required by entrepreneurs and start-ups to assess data related to financial forecasting.

Research Design & Methods: The article adopts a conceptual analysis approach and a statistical evaluation of the proposed financial calculator by 58 Polish entrepreneurs. The latter tested the calculator and assessed its functionality, listing the most interesting aspects.

Findings: The results demonstrate that forecasting the payback period over several years is the most useful function offered by the proposed online financial calculator. The second most important element is its calculation of an estimation of investment costs, which is useful for start-ups and entrepreneurs. The conceptual analysis findings consider the tool to be a form of ‘microlearning’ and an improvement on existing tools. The article demonstrates how it can be easily used by entrepreneurs and start-ups for conducting financial calculations.

Implications & Recommendations: An analysis of the already existing financial tools indicates that they are either too simple or too complex. The proposed online financial calculator supplements the information inputted into the cost structure and revenue model elements in the business model canvas. The financial calculator ought to act as a tool that significantly supplements the business model canvas.

Contribution & Value Added: This article addresses a gap in the literature related to criticism directed towards the business model canvas. The latter does not allow for any financial calculations. The inclusion of the financial calculator with the business model canvas enables the provision of new financial insights. It enables entrepreneurs to assess when economic viability will be achieved. Considered a simple and easy-to-use microlearning tool, the financial calculator is user-friendly and it allows for the inputting of data (multiple times, if required) in a brief period, being both cost-effective (as it is publicly available online at no cost) and efficient due to the brief period required to use it. To date, there is no other adequate tool that may be used to determine the optimisation of assets of either a start-up or of an already existing enterprise. Neither is there an adequate online financial tool that addresses the cost structure and revenue streams elements in the business model canvas.

Keywords

business models, financial calculator, NPV, IRR, microlearning

pdf

Author Biography

Ludmiła Walaszczyk

Ludmila Walaszczyk, Ph.D. in Management Science, Lukasiewicz Research Network – Institute for Sustainable Technologies, Radom Poland, Head of Hybrid Learning and Behavioural Economics Lab. Her scientific interests concern business models aspects, the multiculturality in organisations, and the management of the modern enterprise.

Sandra Dingli

Sandra Dingli, Ph.D. in Philosophy, University of Durham, UK; Professor, Edward de Bono Institute for Creative Thinking and Innovation at the University of Malta. Her research interests include innovation management, foresight, business models, leadership, and new digital technology.


References

  1. Andreini, D., Bettinelli, C., Foss, N.J., & Mismetti, M. (2022). Business model innovation: A review of the process-based literature. Journal of Management and Governance, 26(4), 1089-1121, https://doi.org/10.1007/s10997-021-09590-w
  2. Berry, T. (2012). How to Estimate Realistic Business Startup Costs — 2021 Guide. Retrieved from https://articles.bplans.com/estimating-realistic-start-up-costs/ on February 2, 2023.
  3. Buchem, I., & Hamelmann, H. (2010). Microlearning: A strategy for ongoing professional development. eLearning Papers, 21(7), 1-15.
  4. Chesbrough, H. (2006). Open business models: How to thrive in the new innovation landscape. McGraw Hill Education Ltd.
  5. Chesbrough, H. (2012). Open innovation: Where we’ve been and where we’re going. Research Technology Management, 55(4), 20-27. Boston: Harvard Business School Press, https://doi.org/10.1111/j.1540-5885.2008.00309_1.x
  6. Commonwealth of Learning (COL). (2023). Introduction to microlearning. Retrieved from http://oasis.col.org/bitstream/handle/11599/3877/2021_Allela_Introduction_to_Microlearning_Course.pdf?sequence=8&isAllowed=y on February 14, 2023.
  7. Drucker, P. (1994). The theory of the business. Harvard Business Review. September – October.
  8. Dudin, M.N., Lyasnikov, N., Leonteva, L., Reshetov, K., & Sidorenko, V. (2015). Business model canvas as a basis for competitive advantage of enterprise structures in agro industrial sphere (English version). Biosciences Biotechnology Research Asia, 12(1), 887-894, https://doi.org/10.13005/bbra/1736
  9. Gambardella, A., & McGahan, A.M. (2010). Business-model innovation: General purpose technologies and their implications for industry architecture. Long Range Planning, 43, 262-271, https://doi.org/10.1016/j.lrp.2009.07.009
  10. Hug, T. (2006). Microlearning: A new pedagogical challenge (Introductory note). In T. Hug, M. Lindner, & P.A. Bruck (Eds.), Microlearning: Emerging concepts, practices and technologies after e-learning: Proceedings of Microlearning Conference 2005: Learning & Working in New Media (pp. 8-11). Innsbruck, Austria: Innsbruck University Press.
  11. Kohnke, L. (2023). Microlearning in the education of the future. In Using technology to design ESL/EFL microlearning activities (pp. 81-84). Singapore: Springer Nature Singapore, https://doi.org/10.1007/978-981-99-2774-6
  12. Kossen, C., & Ooi, C.Y. (2021). Trialling micro-learning design to increase engagement in online courses. Asian Association of Open Universities Journal, 16(3), 299-310. https://doi.org/10.1108/AAOUJ-09-2021-0107
  13. Lehmann, C., & Bidmon, C.M. (2021). On the back of a beer coaster – Simple estimates for costs and revenues in business modelling. Journal of Business Models, 9(3), 1-9, https://doi.org/10.5278/jbm.v9i3.2801
  14. Lin, J., & Sekiguchi, T. (2020). E-learning in entrepreneurship education: A systematic literature review. 2020 IEEE International Conference on Teaching, Assessment, and Learning for Engineering (TALE), Takamatsu, Japan, 202, (pp. 83-90), https://doi.org/10.1109/TALE48869.2020.9368412
  15. Lusardi, A., & Mitchell, O.S. (2013). The economic importance of financial literacy: Theory and evidence. Journal of Economic Literature. American Economic Association, 52(1), 5-44, https://doi.org/10.1257/jel.52.1.5
  16. Morris, M., Schindehutte, M., & Allen, J. (2005). The entrepreneur’s business model: Toward a unified perspective. Journal of Business Research, 58, 726-735, https://doi.org/10.1016/j.jbusres.2003.11.001
  17. Nastase, M.M., & Popescu, E. (2023). Towards integrating learner sourcing, microlearning and gamification in moodle. In C. Frasson, P. Mylonas, & C. Troussas (Eds.), Augmented intelligence and intelligent tutoring systems (pp. 352-363). Cham: Springer Nature Switzerland, https://doi.org/10.1007/978-3-031-32883-1
  18. Nur Fitria, T. (2022). Microlearning in Teaching and Learning Process: A Review, CENDEKIA. Jurnal Ilmu Sosial, Bahasa dan Pendidika, 2(4), 114-135.
  19. OECD/INFE. (2020). OECD/INFE 2020 International survey of adult financial literacy. Retrieved from www.oecd.org/financial/education/launchoftheoecdinfeglobalfinancialliteracysurveyreport.htm on December 31, 2022.
  20. Omer, A.H. (2017). What is microlearning and what are the most important microlearning features. Retrieved from https://elearningindustry.com/most-important-microlearning-features on January 23, 2023.
  21. Osterwalder, A., & Pigneur, Y. (2010). Business model generation: A handbook for visionaries, game changers and challengers [Polish edition, 2012], Helion S.A.
  22. Paiola, M., Agostini, L., Grandinetti, R., & Nosella, A. (2022). The process of business model innovation driven by IoT: Exploring the case of incumbent SMEs. Industrial Marketing Management, 103, 30-46, https://doi.org/10.1016/j.indmarman.2022.03.006
  23. Pappas, C. (2016). Microlearning in online training: 5 advantages and 3 disadvantages. Retrieved from https://elearningindustry.com/microlearning-in-online-training-5-advantages-and-3-disadvantages on January 23, 2023.
  24. Pawlicka, A. (2023). Microlearning – czy małe kęsy szybko dostępnej wiedzy to edukacyjny fast food?. Retrieved from https://hcmdeck.com/blog/microlearning/ Retrieved on January 20, 2023.
  25. Rappa, M. (2010). Managing the digital enterprise: Business models on the web. Retrieved from www.digitalenterprise.org on January 24, 2023.
  26. Rauch, A., & Hulsink, W. (2015). Putting entrepreneurship education where the intention to act lies: An investigation into the impact of entrepreneurship education on entrepreneurial behavior. Academy of Management Learning and Education, 14(2), 187-204. https://doi.org/10.5465/amle.2012.0293
  27. Remenova, K., Kintler, J., & Jankelova, N. (2020). The general concept of the revenue model for sustainability growth. Sustainability, 12(16), 6635, https://doi.org/10.3390/su12166635
  28. Shail, M.S. (2019). Using micro-learning on mobile applications to increase knowledge retention and work performance: A review of literature. Cureus, 11(8), e5307, https://doi.org/10.7759/cureus.5307
  29. Small Business Trends, Startup Calculator. (2022). Retrieved from https://smallbiztrends.com/startup-calculator on January 2, 2022.
  30. Stewart, D.W., & Zhao, Q. (2000). Internet marketing, business models, and public policy. Journal of Public Policy and Marketing, 19(2), 287-296, https://doi.org/10.1509/jppm.19.2.287.17125
  31. Tajpour, M., & Razavi, S.M. (2023). The effect of team performance on the internationalization of digital startups: The mediating role of entrepreneurship. International Journal of Human Capital in Urban Management, 8, 17-30, https://doi.org/10.22034/IJHCUM.2023.01.02
  32. Tajpour, M., Salajzadeh, A., & Braga, V. (2021). Investigating social capital, trust and commitment in family business: Case of media firms. Journal of Family Business Management, 12(4), 938-958, https://doi.org/10.1108/JFBM-02-2021-0013
  33. Taylor, A.D., & Hung, W. (2022). The effects of microlearning: A scoping review. Educational Technology Research and Development, 70(2), 363-395, https://doi.org/10.1007/s11423-022-10084-1
  34. Teece, J. (2010). Business models, business strategy and innovation. Long Range Planning, 43(2-3), 172-194, https://doi.org/10.1016/j.lrp.2009.07.003
  35. University “Dunarea de Jos” of Galati, Online financial calculator. (2023). Retrieved from https://probm2.cti.ugal.ro/site/en/financial-calculator/ on June 25, 2023.
  36. U.S. Small Business Administration, Plan your business: Calculate your startup costs. (2022). Retrieved from https://www.sba.gov/business-guide/plan-your-business/market-research-competitive-analysis on January 2, 2022.
  37. Zoho Finance, Break-even point calculator. (2022). Retrieved from https://www.zoho.com/inventory/break-even-point-calculator/ on January 2, 2022.

Downloads

Download data is not yet available.

Similar Articles

<< < 7 8 9 10 11 12 13 14 15 16 > >> 

You may also start an advanced similarity search for this article.