Can a Test Tell you if You're a Good Entrepreneur?

Bankers around the world know there are profits to be reaped by making loans to promising small businesses that fall just short of traditional definitions of “creditworthy.” Ever since Nobel Prize winner Muhammad Yunus’ Grameen Bank pioneered “microfinance” by making tiny loans to single mothers in Bangladesh, development policymakers also have believed that getting credit to small businesses—those too large for Grameen-style microloans but still lacking collateral or credit history—is not only possible, but the key to helping a nation’s economic growth. So how to figure out who’s a good risk for a loan—and who isn’t?

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