Businesses:
– The business model is scalable
– There is a compelling case that there is large latent/unmet demand for the product/service
– Competition is underperforming/non-existing and barriers to entry are high
– Competition for financing a given firm is low (don’t want to enter a bidding war)
– Strong personal relationships with management
– Strong balance sheets for financial institutions (diligence their Accounts Receivable and recovery rates)
– Strong Debt Service Coverage Ratios for mature businesses
Economies:
– Rapid growth in the urban middle class – rapid demand growth from the latent baseline
– Large domestic market
– Rule of law/low corruption (esp. for PPPs)
Your blog is interesting. I am interested in changing economic structures. When you are in New York, I will introduce you to a dear friend from Rwanda….