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Principles2018-04-23T10:40:35+00:00

Trust

TrustCollatio works with farmer groups and communities who do not have the financial means to develop their business models in a way that allows them to capture more value. Most farmers we work with do not have the appropriate collateral in terms of land ownership to take up loans with fair interest rates. The result is that in order to make an investment to advance their businesses, farmers have to take up loans that puts them into a long-term debt position.

When constructed carefully and over time, we believe trust itself becomes collateral. Building this trust requires open dialogues at a level playing ground where all stakeholders are equal. It also requires a long-term engagement with farmer groups and communities. Following this recipe, trust becomes the DNA of the relationship, ultimately transforming itself into the currency of true entrepreneurship.

Following this recipe, trust becomes the DNA of the relationship, which ultimately is being transformed into the currency of true entrepreneurship.

Thanks to the diverse background of Collatio’s founders, which combines three different nationalities from the global south and north, we are able to liaise with farmer groups and communities equally. Why? Because our families were once in the same position as them. This is different than most NGOs and social businesses that recruit local staff in countries where they operate projects, but keep the overarching management in the global north.

Accessibility

AccessibilityAs argued by Thomas Friedman in his book ‘The World is Flat’, the world is increasingly moving towards a service-based economy. The rules that govern this global economy dictate that ownership is less relevant than say, one century ago. Recent innovations like Uber and Airbnb show us that accessibility to resources is more important than the actual ownership over resources. In other words, what became more relevant is the access to utilize resources. Focussing on accessibility instead of ownership allows Collatio to develop more entrepreneurial opportunities and is also more cost-efficient.

Focussing on accessibility instead of ownership allows Collatio to develop more entrepreneurial opportunities.

Connecting to our first working principle of trust, Collatio believes that the old rules of ownership should not dictate the ability to access finance or develop new market opportunities. Adopting this principle creates a freedom to invest in numerous initiatives and allows Collatio to explore and enter into joint ventures with farmer groups and communities, where risks and benefits are equally shared among all entrepreneurs.

Transparency

TransparencyTransparency between all stakeholders is essential to create a successful business, as it directly relates to trust. For example, transparency allows investors to obtain an accurate image on the business’ performance. For off-takers, transparency relates to long-term supply chain strategies. Thus, transparency is the key ingredient for creating an ecosystem of shared values. As a leading principle, Collatio propagates a transparent business climate between the ventures of farmer groups and communities, and companies.

As a leading principle, Collatio propagates a transparent business climate between the ventures of farmer group and communities, and companies.

Recent technologies like Uber and Airbnb shows us that no resource can be accessed without sharing information between the provider and user. Collatio adopted this approach as their working principle.

Happiness

HappyResources that are not utilized, whether it is physical, natural or financial, contribute to inefficient business models. Providing farmer groups and communities with the financial means to create a new or develop their existing business, and forging trade relationships between them and companies, leads to a higher efficiency in terms costing and productivity. Although both indicators are incredibly important, we believe another indicator must be added: happiness. Learning from Bhutan where happiness is used to rate the country’s economic performance, Collatio incorporated happiness as an element in their Monitoring & Evaluation (M&E) framework.

Collatio incorporated happiness as an element in their Monitoring & Evaluation (M&E) framework.

Collatio monitors and evaluates happiness by looking to tangible and intangible assets. For example, improved housing, access to a pension plan or a purchase of simply a television, are indicators for the performance of our projects. Intangible assets are measured by evaluating the level of farmers’ enthusiasm and improved state of mind (less concerns about the subsistence of the household or community). Collatio is unique for having this approach.

COLLATIO VISION

Collatio envisions to propagate the vision of a shared values’ ecosystem on a worldwide level, where every farmer group and community has the same equal opportunities and freedom to advance economically and socially.

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