b'E M E R G I N G L E A D E R SA STUDENTS PERSPECTIVEBy Lawrence ChenThe University of Michigansnegotiations until after thewill naturally see more International Investmentpandemic. Nevertheless,opportunities to enter. For local Fund (IIF) was founded to findthrough this project, I learnedSME companies to thrive in a sustainable ways to fill thethree valuable lessons: more formalized market, they financing gap for small andmust become competitive medium-sized enterprisesFirst, many SME are familybefore the region matures.(SMEs) in emerging markets. businesses and owners want to keep the company within theFinally, while the relationship During the last semester of myfamily for generations to come.between suppliers and Ross MBA program, I had theAs a result, its an incrediblycustomers is extremely opportunity to lead a team ofpersonal decision to selltransactional in developed students to Madurai to conductownership stake in a company.countries, this is not true due diligence on a potentialHowever, equity investmentsin many emerging markets. investment opportunity for IIF.are also necessary for growthIn Madurai, we found that This included research on thesince debt in emergingcultivating strong personal companys management team,markets can be extremelyrelationships with the people financial valuation, market,expensive and can easily lead toand companies you do legal and strategic plan. insolvency if not kept in check. business with is critical.Although we decided to initiateSecond, as infrastructure and investment discussions withregulations in second-tier our target company, COVID-19cities mature, large national forced us to hold on finaland multinational competitors THE WILLIAM DAVIDSON INSTITUTE 23'