For SME definition

Wow, very cool.

So we could approach this by a group brainstrom in a discussion thread and someone helping shepherding us through the process (and perhaps being responsible for condensing ideas down to meet the deadline for the first round).

Yeah, I think so. I'd make it easy and nominate you to shepherd. And then you as Chief Nedhooligan file the indicator - or two, or three... I don't really even know what makes a good indicator. Something specific, measurable, generalizable, and... or RVR - "Reliability, verifiability, repeatability"?

Figured that nomination would come home to roost.

What indicators can outside investors measure to help them predict the potential success of emerging market SMEs?

Here are the four key factors an angel/VC will put into strong consideration when looking at a deal.

Team: Is the team complete, competent, motivated and able to execute?

Market Size: Is there a market size that offers opportunity within that funds target investment criteria?

Product/Service: Is the product/service defensible, have consumer/business demand, and ready to go?

ROI: Will the angel/VC get a good ROI, and what's the timeframe?

So, one of my first questions would be should the list be any different. If a rose is a rose, is a company a company?

Those sound like a good start Mark. So the way I read it, the need would be, pushing these factors into clear "indicators." For example:

• What are the [valid, reliable, measurable, generalizable?] indicators of an a) complete, b) competent, c) motivated and d) able team?

The bigger the money/investment, the more key factors need to be into place. With a VC deal those 4 items need to be fairly well along, with an angel deal, there may be a missing team member or two. The depth of market size and defensible product/service a little less well researched/understood.

Assuming this is a technology play rather than a fruit and veggies stand...here's what a startup tech team could look like.

CEO/President/founder, COO, CMO, CFO, CTO. (prez, operations, marketing, financial, technical). Those five people would make a pretty complete startup, C-level team for a tech company.

Indicators of competence and ability: Years of experience, both individual and combined.

Motivation: Do they desire a personal "liquidity event"? Motivated to work long/hard hours to build something meaningful? This may be more of a reference check.

Looks very interesting. I am not sure how much I can add but sure want to watch and learn.You can assign me cyber-grunt work....

Just tossing in an overall general thought on the groups they listed...

Top Academics, Economists and Business Strategists: tend to be very theoretical and research based.

Investment bankers: usually very focused on the back end of a business that is ready to either sell or IPO.

Venture Capitalists: focused on post seed/angel investments and biz models fairly developed.

Entrepreneurs: often times focused in the world of day to day flexibility, multitasking, execution, minutiae, business development and sales...often so heads down with so many things in the air there is not enough time in the day.

You know, I'm thinking about your VC indicators, and "a rose is a rose" bit Mark and I have to say, I'm not entirely convinced. Here's why:

• We're talking a lot about the developing world, not established markets with rules (for example, a well-oiled patent system)
• We're talking about emerging markets, and also about emerging business models. This means, traditionally (I think), risk of failure is seen as somewhat higher
• We're also talking about emerging business leaders - of small and medium-sized businesses - these may be younger, less "experienced" teams than a VC is used to looking at
• In the case of social entrepreneurs, one of the faster growing sectors in emerging economies, we're talking about painstaking work, often community-building work that has a longer, smaller payback

This is my guess - that maybe we are talking about two very different things, especially the context.

That said, there's likely some great stuff to squeeze out both ends and mash up.

Check out what entrepreneur and all around great guy Ryan Allis has to say about what VC's want - or what one needs before taking a company public:

• Build company to at least $40M in annual sales (the sort-of-hard ‘takes 7 years’ part).
• Reach breakeven or profitability and have solid positive EBITDA in sight.
• Meet with your bankers to write your ‘Form S-1‘ detailing every part of your business, product, team member, every risk etc.
• Determine with your bankers which metrics and the definition of each metric you will report to ‘the Street’ (the institutional investors that will buy/sell your shares and analysts which will cover your company once it’s public).

And there's more. I get these aren't metrics, but I bet there are some real gems in this...

• a sales threshold; a number that demonstrates viability
• something like ebidta for the emerging social enterprise; the "white space" between the economic activity and the numbers, where living is nurtured
• a minimal level of bureaucratese, like incorporation with the IRS...?
• some heavy lifting with solid financial advisors; how do the number shake out and market variables - exchange rates, if necessary, shake out...?

I don't know - thinking out loud. There also the thing about "social" return on investment. How is this demonstrated, and what should its "weight" be? Seven only makes a brief mention of "cultural" benefits of entrepreneurship...

I have just walked out of a meeting proposing to some Thai business graduate students - MBA and PhD candidates (who are mainly entrepreneurs themselves) the idea of building a team to enter this competition. I think it will provide them with a good experience and I think they have some advantages of being in a developing country but one that is about half way up the ladder. They know a bit of both sides first hand. Things look promising at the moment....we will see.

That's cool Linda. Are you going to have them try and work here, or is this something on their own? Keep us posted.

Here is a framework put together by a group supporting venture finance at the middle tranche of entrepreneurs in emerging markets. this focus on filling a finance niche for "high impact" entrepreneurs seems to be the new next big thing...

I also found their interpretation of obstacles to entrepreneurial entry into markets helpful: