Entrepreneurial Finance Lab


Psychometric Analysis of Entrepreneurs:
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. EFL’s tool 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 EFL 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. The project is in its testing phase and will be implemented after successful completion of the tests.

Principal Investigators

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

Partners and Funders

Entrepreneurial Finance Lab Habib Bank Limited
International Finance Corporation Research Consultants

Project Period:




Quarterly Journal of Economics