Daniel Gerardo Rodriguez Ruiz from Santander Bank Visits GBSB Global Master of Science in Entrepreneurship Students

Director Oficina de Emprsas en Banco Santander, Daniel Gerardo Rodriguez Ruiz, joined Professor Xavier Arola’s Entrepreneurial Finance class on Friday, May 5th, 2017. The topic of the presentation covered what many students agree to be one of the major obstacles they will face starting a new venture, obtaining financing. Mr. Ruiz, representing Spain’s largest banking institution and the Eurozone’s 8th largest financial institution came to GBSB Global to discuss the banking system and how entrepreneurs and business professionals obtain financial capital to start or finance their projects.

It is important when as an "entrepreneur", you go to the bank for a loan to understand the considerations the financial institution studies before issuing the financing.

Banks want to understand the potential big companies and/or new ventures have to make a return on the investment and to make sure the business will be accountable for the debts they incur. Banks will essentially weigh the economic potential, among analyzing other criteria.

It is also vital to understand before getting started, that banks will only finance one part of the project, meaning, they will not give out 100 percent of the funding needed to operate the business, but rather will co-finance up to 60 percent of the project. The other 40 percent will need to come from other investment firms or angel investors.

The financial plan must be consistent and relevant to the current market and forecast the first 3 years the business will be in operation. Additional financing can be granted after a one-year review of the business’ performance. That is why it is important to be thorough and complete when projecting numbers and conducting a competitor analysis.

Having an investor will add support, leveraging the investment capital, convincing banks to consider lending more.

The Master of Science in Entrepreneurship students have a range of projects they are pursuing. Mr. Ruiz was very informative and up front analyzing the room, telling students it will be far easier for service-oriented businesses or the industrial sector to apply for financing in comparison to mobile or online ventures. Startups geared at creating an app, mobile tool or online gaming system are more in line with venture capital firms or seeking angel financing.

The reason here, not to detour students form their aspirations, but it is more difficult to estimate cash flows for a market that is more abstract. Typically, there are not concrete figures to present if the project is truly innovative and the first of its kind. The risk is too high for traditional institutions to undertake. Only after a startup has received investment from a capital venture will banks consider the project.

The curriculum of the Master in Entrepreneurship at GBSB Global is designed to provide students with the fundamental knowledge applicable to all aspects of entrepreneurial management from the discovery of entrepreneurial opportunities to writing a business plan and taking the company globally through internationalization strategies.

GBSB Global is honored to have an array of professional contacts not only in Barcelona, but across western Europe and the world able to help guide and inspire students throughout their entrepreneurial pursuits. Find out more about the Master of Science in Entrepreneurship program and set your ideas in motion.

Written by Emily Dawn Szajda, GBSB Global Content Manager

Santander Bank visits GBSB

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