Economic Growth through
Small Business Innovation
Barbara Freeman
CEO and Founder
SME Global Group
© 2014 Fair Isaac Corporation. Confidential.
This presentation is provided for the recipient only and cannot be reproduced or shared without Fair Isaac Corporation’s express consent.
600 Million New Jobs Needed Over the Next 20 Years
Most Will Come from High-Growth SMEs in Emerging Markets
Employment Growth Needed to Cope with Population Growth
South Asia
Sub-Saharan Africa
East Asia and the Pacific
Middle East and North Africa
Sub-Saharan Africa
South Asia
Latin America and the Caribbean
Latin America and the Caribbean
Middle East and North Africa
East Asia and the Pacific
Europe and Central Asia
Europe and Central Asia
0
5
10
15
Million jobs per year
Source: WDR 2013 team based on data from ILO and World Development Indicators.
Note: The estimations are based on projected population growth assuming constant employment rates.
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© 2014 Fair Isaac Corporation. Confidential.
0%
1.0%
2.0%
Annual change in
employment (percent)
3.0%
Growth Originates from Innovative SMEs
Scale
Targeting top 1% High-Growth SMEs will deliver the most impact
300K SMEs, 15–20 years, >50 Million Jobs…
Share of Job and Job Creation
100
300,000 Large
3 Million
SMEs
100 Million
Micros
500 Million
“Large” Jobs
850 Million
SME Jobs
Not HGS
80
Percent
10%
HG
SMEs
60
40
20
150 Million
Micro Jobs
0
Share of
Jobs
Source: Enterprise Survey analysis on SMEs with between 10 and 250 employees.
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© 2014 Fair Isaac Corporation. Confidential.
Share of
Growth
High-Growth SME Run by
High-Potential Entrepreneurs
► Not
micro-enterprise
► Small
end of SME range
► Formal
business
► In business for at least 3 years
► 20 or fewer employees
► Average annualized growth of at least 20%
► Desire
to grow: This is not a lifestyle business!
► Desire
to learn: This is not for the incurious!
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© 2014 Fair Isaac Corporation. Confidential.
Entrepreneurs Need Access to Finance and Advisory Services
People Are Central
National/Regional Environment
Industry/Sector
Firm
Entrepreneur and Entrepreneurial Team
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© 2014 Fair Isaac Corporation. Confidential.
Educational Development Is Key to Economic Growth
People in High-Growth SMEs Innovate
“The main forces pushing toward reduction in inequalities
are the diffusion of knowledge and investment in training
and skills […] Knowledge and skill diffusion is the key to
overall productivity growth, as well as the reduction of
inequality, both within and between countries.”
Thomas Piketty, 2014
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© 2014 Fair Isaac Corporation. Confidential.
Services To Be Built*
DARE Adaptive System
Existing Cloud Services
DARE
Diagnostic, Analytics and
Recommendations Engine
*Existing and locally based.
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© 2014 Fair Isaac Corporation. Confidential.
Services To Be Built*
DARE Adaptive System
Existing Cloud Services
DARE
Global
Database
DARE
Diagnostic, Analytics and
Recommendations Engine
*Existing and locally based.
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© 2014 Fair Isaac Corporation. Confidential.
SME Provided Data (example)
Demographics
Psychometrics
Business (3 year)
Age
Grit
Sales
Education
Growth Mindset
Profits
Family
Integrity
Equity
Resident
Curiosity
Debt
Transport
Proactive
B/S
Phone
Self Efficacy
I/S
IQ Images
Employees
Digit Span
Women
SIC Code
Yrs. Ops.
Services To Be Built*
DARE Adaptive System
Existing Cloud Services
Potentially Purchased Services
Credit Score
Psychometrics
Fraud Checking
Business Profile
Social Media Tracking
Business Rating
DARE
Global
Database
DARE
Diagnostic, Analytics and
Recommendations Engine
*Existing and locally based.
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© 2014 Fair Isaac Corporation. Confidential.
SME Provided Data (example)
Demographics
Psychometrics
Business (3 year)
Age
Grit
Sales
Education
Growth Mindset
Profits
Family
Integrity
Equity
Resident
Curiosity
Debt
Transport
Proactive
B/S
Phone
Self Efficacy
I/S
IQ Images
Employees
Digit Span
Women
SIC Code
Yrs. Ops.
Services To Be Built*
DARE Adaptive System
Existing Cloud Services
Potentially Purchased Services
Demographics
Psychometrics
Credit Score
Psychometrics
Fraud Checking
Business Profile
Social Media Tracking
Business Rating
DARE
Global
Database
DARE to INVEST
Selection Plan
*Existing and locally based.
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© 2014 Fair Isaac Corporation. Confidential.
DARE
Diagnostic, Analytics and
Recommendations Engine
SME Provided Data (example)
Demographics
Psychometrics
Business (3 year)
Age
Grit
Sales
Education
Growth Mindset
Profits
Family
Integrity
Equity
Resident
Curiosity
Debt
Transport
Proactive
B/S
Phone
Self Efficacy
I/S
IQ Images
Employees
Digit Span
Women
SIC Code
Yrs. Ops.
Services To Be Built*
DARE Adaptive System
Existing Cloud Services
Potentially Purchased Services
Credit Score
Psychometrics
Fraud Checking
Business Profile
Social Media Tracking
Business Rating
DARE
Global
Database
DARE to INVEST
Selection Plan
Investment Recommendation
Performance Feedback
Training-Monitoring-Mentoring Results
*Existing and locally based.
11
© 2014 Fair Isaac Corporation. Confidential.
DARE
Diagnostic, Analytics and
Recommendations Engine
SME Provided Data (example)
Demographics
Psychometrics
Business (3 year)
Age
Grit
Sales
Education
Growth Mindset
Profits
Family
Integrity
Equity
Resident
Curiosity
Debt
Transport
Proactive
B/S
Phone
Self Efficacy
I/S
IQ Images
Employees
Digit Span
Women
SIC Code
Yrs. Ops.
Services To Be Built*
DARE Adaptive System
Existing Cloud Services
Potentially Purchased Services
Credit Score
Psychometrics
Fraud Checking
Business Profile
Social Media Tracking
Business Rating
DARE
Global
Database
DARE to INVEST
Selection Plan
Investment Recommendation
Performance Feedback
DARE
Diagnostic, Analytics and
Recommendations Engine
SME Provided Data (example)
Demographics
Psychometrics
Business (3 year)
Age
Grit
Sales
Education
Growth Mindset
Profits
Family
Integrity
Equity
Resident
Curiosity
Debt
Transport
Proactive
B/S
Phone
Self Efficacy
I/S
IQ Images
Employees
Digit Span
Women
SIC Code
Yrs. Ops.
DARE to LEARN
Education Plan
Learning Systems
Content OER
Mentor System
Training-Monitoring-Mentoring Results
Learning Networks*
IFC Biz Edge/GBSN*
*Example of existing and locally based.
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© 2014 Fair Isaac Corporation. Confidential.
DARE to Invest
Learning and Development = Financial Inclusion
High Credit
Score
Business Risk
Too High
T(1)
Good
Business
Prospect
Entrepreneurial
Potential
Too Low
Low
Credit
Score
13
Poor
Business
Prospect
© 2014 Fair Isaac Corporation. Confidential.
Initial Target Market
Psychometric Cutoff
Credit Score Cutoff
Business Analytics Cutoff
Default Risk
Too High
Low Potential
Entrepreneur
T(1)
High Potential
Entrepreneur
DARE to Invest
Learning and Development = Financial Inclusion
High Credit
Score
T(n)
Business Risk
Too High
T(1)
Good
Business
Prospect
T(n)
Low
Credit
Score
Low Potential
Entrepreneur
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© 2014 Fair Isaac Corporation. Confidential.
High Potential
Entrepreneur
Initial Target Market
Psychometric Cutoff
Credit Score Cutoff
Business Analytics Cutoff
Default Risk
Too High
Entrepreneurial
Potential
Too Low
T(1)
Poor
Business
Prospect
DARE to Invest
Learning and Development = Financial Inclusion
High Credit
Score
T(n)
Business Risk
Too High
T(1)
Good
Business
Prospect
T(n)
Low
Credit
Score
Low Potential
Entrepreneur
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© 2014 Fair Isaac Corporation. Confidential.
High Potential
Entrepreneur
Initial Target Market
T(n)
After Learning and
Development
Psychometric Cutoff
Credit Score Cutoff
Business Analytics Cutoff
Default Risk
Too High
Entrepreneurial
Potential
Too Low
T(1)
Poor
Business
Prospect
DARE to Learn
Personalized and Relevant Training and Mentoring
SME Entrepreneur
Mobile Phones, Devices,
Computers, etc.
Knowledge Base
Individual Entrepreneur
Data- Financial, Education
Learning Maps and Ontology
Entrepreneurial Capabilities
Open Educational
Resources for Training
Vetted Content, Podcasts, Etc.
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© 2014 Fair Isaac Corporation. Confidential.
DARE to Learn
Personalized and Relevant Training and Mentoring
SME Entrepreneur
Mobile Phones, Devices,
Computers, etc.
Knowledge Base
Individual Entrepreneur
Data- Financial, Education
Learning Maps and Ontology
Entrepreneurial Capabilities
Open Educational
Resources for Training
Vetted Content, Podcasts, Etc.
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© 2014 Fair Isaac Corporation. Confidential.
SME Mentor
Technology
(On-Demand)
In-Person
(local networks)
DARE to Learn
Personalized and Relevant Training and Mentoring
SME Entrepreneur
Mobile Phones, Devices,
Computers, etc.
Knowledge Base
Individual Entrepreneur
Data- Financial, Education
SME Mentor
Technology
(On-Demand)
In-Person
(local networks)
Mentor Tool
Schedule
Connect
Learning Maps and Ontology
Entrepreneurial Capabilities
Open Educational
Resources for Training
Vetted Content, Podcasts, Etc.
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© 2014 Fair Isaac Corporation. Confidential.
Record
Evaluate
DARE to Learn
Personalized and Relevant Training and Mentoring
SME Entrepreneur
Mobile Phones, Devices,
Computers, etc.
Knowledge Base
Individual Entrepreneur
Data- Financial, Education
SME Mentor
Technology
(On-Demand)
In-Person
(Local Networks)
Mentor Tool
Schedule
Connect
Semantic Map
Entrepreneurial Capabilities
Open Educational
Resources for Training
Vetted Content, Podcasts, Etc.
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© 2014 Fair Isaac Corporation. Confidential.
Record
Evaluate
Predictive
Analytics
Machine
Learning
Training and Mentoring Address Different Needs
Multidimensional Capabilities Development
Dispositional—Empowering
► Self-Efficacy
► Risk
► Persistence
► Flexibility
► Inquisitiveness
► Inspirational
► Openness
► Proactive
Propensity
► Growth
Mindset
21st Century—Enabling
► Communication
► Innovation
► Collaboration
► Problem-Solving
► Networking
► Awareness
and Creativity
of Best Practices
► Embrace
Diversity
Thinking
► Connects Ideas
► Critical
Technical—Operational
► Financial
► Operations
► Human
► Management
► Internationalizing
► Marketing
Literacy
Skills
► Leadership Skills
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and Value Chain
and Exporting
► Data-Driven Decision-Making
© 2014 Fair Isaac Corporation. Confidential.
Resources
and Sales
► Governance
Teaching Technical Skills through Training
Vetted, Modularized, and Targeted Resources
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© 2014 Fair Isaac Corporation. Confidential.
Blending 24/7 Digital Mentoring with Local Networks
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© 2014 Fair Isaac Corporation. Confidential.
Cyclical Feedback Generates New Data Outputs
► Cyclical
feedback from demographic, psychometric, and business-related data
Correlate with learning data:
► Type
of content (financial literacy, trade finance, etc.)
► Mastery of content (performance on quizzes)
► Sequencing of content (what did they take before and after given course)
► Time on task (which sections of course visited)
► Type of media used (video, visualization, text, interactive simulation, etc.)
► How it was accessed (phone, smart phone, tablet, computer)
► Integrated
business and learning analytics and performance data enables the
optimization of recommendations at the:
►
Firm level: To individual entrepreneurial teams based on their activities
► Systems level: Based on patterns of entrepreneurial behaviors across firms
► Understand
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relationships between learning and job creation
© 2014 Fair Isaac Corporation. Confidential.
Services To Be Built*
DARE Adaptive System
Existing Cloud Services
Potentially Purchased Services
Credit Score
Psychometrics
Fraud Checking
Business Profile
Social Media Tracking
Business Rating
DARE
Global
Database
DARE to INVEST
Selection Plan
Investment Recommendation
Performance Feedback
DARE
Diagnostic, Analytics and
Recommendations Engine
SME Provided Data (example)
Demographics
Psychometrics
Business (3 year)
Age
Grit
Sales
Education
Growth Mindset
Profits
Family
Integrity
Equity
Resident
Curiosity
Debt
Transport
Proactive
B/S
Phone
Self Efficacy
I/S
IQ Images
Employees
Digit Span
Women
SIC Code
Yrs. Ops.
DARE to LEARN
Education Plan
Learning Systems
Content OER
Mentor System
Training-Monitoring-Mentoring Results
Learning Networks*
IFC Biz Edge/GBSN*
*Existing and locally based.
24
© 2014 Fair Isaac Corporation. Confidential.
Productive Growth Originates from SMEs Who DARE
Still Everyone Needs Support!
“Only those who dare to fail greatly
can ever achieve greatly.”
Robert Kennedy
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© 2014 Fair Isaac Corporation. Confidential.
Thank You!
Barbara Freeman
CEO and Founder
SME Global Group
© 2014 Fair Isaac Corporation. Confidential.
This presentation is provided for the recipient only and cannot be reproduced or shared without Fair Isaac Corporation’s express consent.
Please rate this session online!
Barbara Freeman
barbarafreeman@smeglobal.net
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© 2014 Fair Isaac Corporation. Confidential.