Entrepreneurial Finance Lab


Entrepreneurial Finance Lab (EFL) has developed an effective, automated and scalable tool to identify high potential, credit worthy entrepreneurs. These tools are based on psychometric principles, drawing on results from decades of research. The EFL Tool has been statistically proven to reduce risk and has been used by financial institutions in 18 countries. It comprises of computerised psychometric tests that measure intelligence, ethics, attitudes and business skills of an entrepreneur. Based on the test scores, the EFL model predicts the credit risk of the test taker. The application of the tool has proven to reduce risk and has opened up markets to banks in unsecured markets where borrowers have little or no collateral. EFL has partnered with IFC (World Bank Group) and HBL to launch its product in Pakistan.

Principal Investigators

Dr. Asim Khwaja, Harvard University
Dr. Bailey Klinger, Harvard University

Partners and Funders

Project Period




Quarterly Journal of Economics