Introduction
The craft industry is not new, as it has been around for a long time (Banks, 2010). What is new is the degree of entrepreneurship incorporating digital and technology innovation. Due to the increased technical capabilities of craft entrepreneurs, the type and range of products they produce have changed (Chandna and Salimath, 2020). This has meant new products being made that combine traditional methods and technological innovation, thereby reshaping the craft industry and making new innovations possible in the marketplace.
Due to the COVID-19 pandemic, there has been a resurgence in interest in craft products and home-based industries (Ratten and Jones, 2021). This is due to social distancing requirements and working from home mandates, which has led to more people spending time at home and wanting to engage in creative endeavours. The craft industry is central to the economic development of most developing economies due to it being viewed as a necessary form of entrepreneurial activity. For many entrepreneurs in developing countries, they rely on the income they earn from selling craft products (Rantisi, 2014). This means that the craft industry represents an industry with a focus on tradition and knowledge.
The word “craft” is a contested term due to the complex way it is understood in society. In developed countries, a craft may denote a handmade product, but in a developing country it might be defined as a skill. This means care needs to be taken as to how context influences the definition of craft. Craft making is considered a way to continue past traditions and to preserve traditions. This is important in many cultures that are typified by their crafts with craft makers respecting the past by incorporating previous techniques of making products into their designs.
The craft industry normally refers to businesses such as arts, fashion, theatre, architecture and music. However, there is some uncertainty as to what the word “craft” actually means, but normally it refers to the use of ingenuity in handmade products (Luckman, 2015). This means there is a direct connection between the individual making the craft and the resulting product. The craft industry broadly overlaps with the heritage and cultural sector (Munro and O’Kane, 2021). This is due to the way culture and history are part of the development of craft pursuits. The craft industry is also part of other sectors such as education, manufacturing, service and tourism (Khaire, 2019).
Little previous work has sought to describe the entrepreneurial behaviour of craft makers. This chapter seeks to close the gap by exploring the role of entrepreneurship in the craft industry. This chapter comprises a diversity of issues related to the craft industry from an entrepreneurial perspective. There is an emphasis on new and emerging crafts whilst respecting long time craft endeavours. The goal of this chapter is to inform entrepreneurs, academics, support agencies and policy makers about the role of entrepreneurship in the craft industry. I have endeavoured to include a range of topics that deal with relevant and pertinent topics regarding craft entrepreneurship. This includes issues at the community, local, regional and international level.
The role of crafts in society
For many craftwork is a hobby or part-time pursuit that is not thought about in a business way. This is changing with the realisation that craft is big business and provides a way to pursue enjoyable pursuits whilst receiving financial gain. Due to the emphasis on technology and digital forms of entrepreneurship, there has been less interest in the craft industry. This is because of the financial gain received from successful digital start-ups (Ratten, 2021). More emphasis is now being placed on digital crafts as a way of integrating digital technology with craft ideas (Ratten and Usmanij, 2021).
Craft products can incorporate social meanings and symbolic values. As a result, culture is being re-emphasised within craft products as a form of competitive advantage. This makes them sought after products in the marketplace. The craft industry is different from other industries, as it has typically been considered as less progressive and profitable than other industries. Risk-taking entrepreneurs have sought to change this stereotype by emphasising the innovation that occurs within the craft industry.
Many craft entrepreneurs have embarked on a creative and novel approach to their business ventures. This has meant integrating their marketing endeavours with regional tourism authorities (Ratten, 2017), thereby linking the craft to a particular region or location as part of its distinctiveness. Some craft entrepreneurs succeed quickly with their business ideas, but for others it can be a hard journey (Ratten, 2014). This means there are some perennially failing craft entrepreneurs that continually try new ideas without having any commercial success.
Alternative approaches are needed to understand the role of crafts in society. This is due to some crafts being viewed more as a hobby than as a business idea. This means the craft product is viewed as an enjoyable pursuit rather than as a financial necessity (Hughes, 2012). New experiences and interpretations will lead to the development of a more vibrant craft industry (Jakob, 2013). Craft entrepreneurs can differentiate themselves from others by refusing to conform to industry standards. This makes them stand out from others and increases their marketability.
Craft makers tend to have more originality than others and are able to come up with new ideas. They are normally more flexible and adaptable with the way they engage in their craft. Therefore, craft makers challenge the status quo as a way of expressing their artistic nature. This means that the ideas of entrepreneurship and innovation as being a necessity in business might be more common amongst craft makers (Jones, Ratten, Klapper and Fayolle, 2019).
Craft makers differ from artists or art entrepreneurs due to their use of handmade production techniques. This means they typically are engaged in more routine activities that have been learnt from others. The degree of innovation within a craft product is based on the preference of the craft maker. Crafts that involve the production of similar products are likely to have less innovation (Chu, 2016). In addition, the insecure labour markets and profit stream of the craft industry require craft makers to be entrepreneurial. The intersection of craft, business and innovation has given rise to a niche field of scholarship called craft entrepreneurship.
Craft makers need to be able to cope with failure in terms of being an entrepreneur. Not every idea a craft maker has will result in a positive result. This means there needs to be some degree of experimentation in terms of developing ideas. Entrepreneurs are able to resist or use failure for future projects. Craft work involves using accumulated knowledge to produce products. This knowledge can be learnt through a variety of sources including family, friends and training courses. In addition, the availability of how-to videos on the internet has further fuelled the ability of individuals to engage in craft work.
There has been a change from production-driven industries including the manufacturing sector to more knowledge-orientated businesses (Ferreira, Fayolle, Ratten and Raposo, 2018). This has been driven by the digital revolution that has created new types of business models. As a result, there are more creativity-oriented businesses that link innovation to new entrepreneurial ideas. Creativity businesses are those that embed a sense of creativity in their economic activities. This makes them focus on skill and talent within business pursuits. Many new businesses are reliant on the creative economy for their survival in the global economy. This has meant that creative entrepreneurship can occur in a number of different contexts but is especially evident in the craft, music and arts sectors (Fillis, 2004).
In order to understand craft entrepreneurship, it is useful to examine the background conditions of creative crafts in the global economy. More specifically, examining the need for more entrepreneurial attention to be placed on the crafts sector. The creative crafts industry involves creators, brokers and consumers. The creators are those who make the craft such as knitters, musicians and artists, whilst brokers are intermediaries that enable crafts to enter the marketplace. Brokers normally refer to entities such as online portals such as Etsy or Amazon that enable crafts to be sold. Consumers are individuals who buy crafts, and their purchasing behaviour influences the development of new crafts.
The concept of a craft entrepreneur
The concept of a craft entrepreneur refers to an individual with specific competence, commitment and skill in making something themselves. This means they hold tacit knowledge that takes time to learn. Often this knowledge is developed through hands-on activity. This means the craft knowledge is hard to transfer as it might be based on individual talents. Craft entrepreneurs have a creativity- based mindset that enables them to develop craft products. Entrepreneurs in general need to think in a different way in order to compete in the marketplace. Therefore, the addition of the word craft to entrepreneurship means it involves a creative individual who is attentive to how crafts can be commodified.
Craft entrepreneurs create and pursue business opportunities. This means that they have a desire to produce a product that is made in a different way to mass produced goods, and they pay attention to how and why a product is made, thereby thinking about the cultural significance of a product and the traditions that make a product. Therefore, craft entrepreneurs make cultural products in terms of the product having an embedded historical linkage. Cultural trendsetters such as celebrities, musicians and artists influence consumption patterns. The creative sector exploits artistic knowledge in business endeavours. Thus, they focus on novelty and originality in products.
Entrepreneurs tend to be more adventurous and willing to take risks. Artists have a different kind of personality to individuals in other industries. They are more egocentric and impulsive due to their desire to make their own kind of art (Feist, 1998). They can be both introverts and extroverts depending on the context. To make their art, artists often need to spend a large amount of time by themselves making them have a more introverted personality. Although there are some artists who crave attention and are considered as extroverts. Therefore, there is no single artist personality as it depends on the personality of the individual. In addition, artists can be motivated by financial or intrinsic gain.
Creativity plays a significant role in innovation. Artists are creative and utilise cumulative gains of knowledge to create their products. Their work is based on the knowledge they have acquired over their lifetime. Artists often produce products that depart from prevailing norms in order to test new ideas in the market. When artists test new ideas, they are likely to face interim failures. This means they need to make revisions in order to move forward and make their designs successful. These setbacks can be hard to overcome, but artists can use their resilience to overcome hurdles. The knowledge artists derive from learning from past experiences can help them create better products. Failure can be a negative event but also a positive event in terms of learning opportunities.
Craft making is good for people’s health as it provides a stress releasing activity. This means craft making can act as an antidote to modern living as it involves repetitive actions. Therefore, it is a form of mindfulness in that the craft maker becomes absorbed in their craft. When a person is involved in making a craft they enter a relaxing state. This means crafts have mental benefits in terms of psychological as well as physical benefits. The psychological benefits derive from being engaged in an activity that results in a tangible outcome. This means the craft maker achieved a sense of achievement from making a product. The physical benefit includes having coordination and stamina to complete the task.
Craft makers are designers who develop their own patterns and ways of working. They can make a small number of products or alternatively scale up their production by employing others. Many craft makers have other jobs and make crafts in their spare time. This makes the craft a leisure activity although sometimes it can also have a profit objective. Increasingly due to the changes in the global economy, there has been more craft makers viewing their craft as a full-time activity. Some of their production methods can be outsourced to others or incorporate machine-based methods. Due to the time and effort craft makers invest in their craft, some are reluctant to scale-up production. This is due to the loss of control over quality standards but also a desire to keep their crafts unique and not mass-marketed. Craft makers might also view an increase in production levels as causing stress and unwanted pressure.
The making of craft products can be viewed as a hobby and the community being notable for its collegiality. This does not mean there is no competition though, as craft makers can be very competitive. It can be hard to obtain a stall at a farmer or makers own market. The need for face-to-face selling of crafts in terms of telling a story of how they are made or engaging with customers might make direct contact between makers and sellers essential. Although increasingly online marketplaces are being used as a way to sell craft products. In an online environment, craft makers can post photos and videos about their craft. It also enables buyers from any geographic location to buy crafts but due to the online environment there are some ethical and moral debates about what constitutes a craft. This is due to some products being handmade whilst others being made by machinery to look handmade.
Handmade can refer crafts that are made in small quantities by one person. In reality, crafts can be made by a number of different people each with their own talents. Craft making can be a collective process with one person directing the production of a craft. This often occurs in craft producers that employ a number of assistants. In addition, products can be classified as handmade but involve moulds or casts. This makes it easier to produce the product and ensures a similar type of product is produced.
Craft makers
Craft makers who mass produce their products have done so for financial reasons. This enables them to increase production levels and profitability. This commercial emphasis makes sense from an economic point of view but from an originality perspective it might decrease the products value. Therefore, some products should be made from an aesthetic point of view in terms of recognising specific craft methods. This can include making craft products in small batches or branding craft products in a way that makes them distinctive in the marketplace.
Normally craft makers have a commitment to making products in a certain way. This ensures the products symbolic capital in terms of being a craft product. Consumers have a number of expectations when buying a craft product including that there is a story behind making of the craft. Craft makers are limited in terms of their production capacities as each product requires a certain amount of time to develop and make. Design is a key part of making a craft as it takes into account how a craft is made. This makes the design process imp...