EFL utilizes a proprietary psychometric application process that incorporates an entrepreneur’s attitude and outlook, ability, business acumen and character to identify high-potential, credit worthy entrepreneurs.

  • 30-60 minute automated application: low transaction costs.
  • Measures credit risk without depending on business plans, credit history or collateral.
  • Has shown accuracy in dozens of countries around the world. > EFL results
  • Used in microfinance, banking, venture capital, and training organizations. > EFL partners
  • Technology originally evaluated at Harvard-based lab  funded by Google.org. > Who we are
  • Durable questions resistant to gaming and manipulation.




What are psychometrics and where are they used?

Psychometrics, whose literal meaning is "measurement of the soul," refers to the use of questionnaires to measure knowledge, abilities, attitudes, and personality traits. EFL does not engage in any assessment of psychology or personality, but we apply psychometric principles to credit scoring and entrepreneurial screening.

There are many studies on the characteristics of successful entrepreneurs. These studies have moved beyond the search for the entrepreneurial "personality" and have uncovered a host of psychological, sociological, and cognitive features that have robust links to entrepreneurial success.

In addition, there is a large established industry using psychometric testing for pre-employment screening. Over 29% of employers use psychological assessments of employees for selection and development, and 80% of employers use intelligence and ability tests. And their use is growing: between 2002 and 2007, the use of personality assessments for selection went from 21% to 59% of surveyed employers, the use of cognitive ability tests went from 26% to 41%, and the use of more general skills/knowledge tests went from 12% to 56%.

Psychometric testing of job applicants is gaining popularity because of its effectiveness. A meta-analysis published by the American Psychological Association found that tests of general cognitive ability have the highest validity of all selection methods. These tests out-perform screening based on personal interviews, biographical data, and past education and experience. The combination of a cognitive ability tests and an integrity/honesty tests has one of the highest composite validities of any combination of techniques.

In partnership with some of the world’s leading psychometrics firms and researchers, EFL has developed an application based on psychometric principles that are related to credit scoring and entrepreneurial success.  EFL has tested these tools in the field with remarkable results. > EFL results



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