projecteverest

[Experiment Results]: Agricultural Financing in Fiji December 2018 (2/2)

by
Eimear Griffin
Eimear Griffin | 4 months ago | in Fiji - Social Consulting

[Experiment Results]: Agricultural Financing in Fiji December 2018 (2/2)

 

This experiment was focused on validating the assumption that Fijian farmers have trouble accessing important capital to increase yields and productivity on their farms. Our goal was to test this hypothesis to validate farmer’s issues with acquiring finance.

 

 

Lean Phase: Problem/Customer Segment

 

Establishing the customer segments pain point as lack of access to capital. This was done through empathising with famers along Valley Rd, Sigatoka and in the Villages Tilalevu and Qereqere.

 

Assumption:

 

Fijian farmers have trouble accessing important capital to increase yields and productivity of their farms.

 

This can come in the form of access to high cost farming assets and machinery, and/or access to low cost farming inputs such as seeds and fertiliser. Additionally, we assume that our customer segment possesses the requisite knowledge to increase outputs, however lacks access to finance/capital to enable them to improve their yield.

  

Results:

 

This experiment is measuring the percentage of Farmers in Fiji that identify with the above problem.

Of the 31 Farmers we surveyed, the break down of use of a potential loan is as follows:

 

50% would use the loan for equipment and supplies

21% would use the loan to grow own business

21% would use the loan for overheads

7% would use the loan to employ more workers

 

Additionally, 64% would be looking to take out a loan under $FJD1000

  

Result: Green Light, 99% of Farmers identified purposes for acquiring finance for their farm. This confirmed our customer segment assumption of farmer’s lack of access to capital.

 

Validated Learning:

 

We validated the assumption that Fijian farmers have trouble accessing important capital to increase yields and productivity on their farms. We found this was due to farmer distrust of banks, as well as lack of financial documentation and inability to provide collateral required for loan approval.

 

Next Move:  

 

This set established the need for more accessible financial capital, our next step is to develop and test a MVP prototype that offers a solution to merchants in providing accessible capital to farmers.  

During our empathising phase we established that merchants already give out lines of credit to select farmers they deem to have no risk. If merchants had access to a customer database that calculates risk, we are under the assumption that the merchants would be able to extend credit to a larger range of farmers/customers. Consequently, making capital more accessible to our customer segment.

Our next step is to test this hypothesis through an experiment design analysing the adoption rate for a Fijian merchant CRM database.

edited on 13th December 2018, 22:12 by Eimear Griffin

William Lee 4 months ago

Good to hear that the assumptions have been strongly validated.
Can you explain to me the decision to go building a CRM database for merchants?

Reply 0

Rose Martin 4 months ago

Hi also, love seeing these results proving the original assumptions!

Just extending Will's question here, I am also wondering about the next step portrayed here and am wondering if its jumping ahead a couple of steps. I think the idea of a CRM for merchants possibly does have some merit, however to move straight to prototyping and testing it may be premature.
It may have more weight trying to first do some experiments understanding merchants as a possible customer segment (as they would, as I understand, now become your customer with this solution) - as they will have a different 'problem' or 'pain points' to the segment of Farmers that you looked at in this experiment.
You may have done loads of research into this already that I don't see here which is great, and could make a solid assumption as such.
Either way I do like this idea as a place to explore next, but just as Will asked if there is any other research or reasoning behind it that would be very helpful for readers :)

Reply 0

Share