This is discussion about Automated, scalable, and proven psychometric risk measurement tool for SMEs..
Psychometric testing measures always intrigue me. We are investigating the establishment of a social development bank, with new financial instruments for social investment http://www.changemakers.com/en-us/node/84886 as well as the potential for social lending by foundations here in New Zealand.
Measurement tools like you offer have the potential to revolutionize lending and maximise the wealth of community, charitable and trust holdings. Couple Questions:-
Very interested to learn more and look forward to hearing from you.
Spoke with DJ not to long ago regarding EFL. Was great to learn about the work you are doing. It is intriguing to see if there are common characteristics on a why some entrepreneurs fail, while others succeed. Generating a "credit score" like data point for entrepreneurs can certainly help accelerate the process of weeding through a large pool of applications, saving time and money. Your tool seems to be a good match for debt, especially where the pools of applications are much larger.
As a venture capitalist, I would agree that when an investment is made, it is being invested ultimately into people and not ideas. One of the most important skills to have as an early stage investor is to be a good judge of character.
We are building the Center for the Missing Middle, and are proud to be including this as one of the many tools funds can use to reduce the cost of due diligence. You can view our proposal here: http://www.changemakers.com/node/86675.
J. Skyler Fernandes
On October 27, 2010, the judges reviewed entries for the Changemakers G-20 SME Finance Challenge competition and would like to pass on the following feedback for your entry (below). Thank you for applying and for your hard work in the field. We are excited to archive your entry to serve as a leading solution for the worldwide community of innovators. We wish you continued luck with your innovative, sustainable, and socially impactful initiatives.
All the best,
The Changemakers Team
This program is highly innovative and is very different from the other ideas entered. It doesn't involve direct resources to be lent out, but provides a model that confronts the information asymmetries and is very scalable. It also requires very limited use of resources.
The statistical results thus far are very encouraging, and if there is one proposal that embodies the whole point of this competition, this is it. One concern is that the psychometric method should be used along with other metrics, not as the only criterion. If it succeeds, it will tackle a key challenge to SME investment.