Transforming the Crafts Industry: Middleman or rather Middleperson 2.0
The crafts industry represents a vital cultural and economic sector worldwide, showcasing the richness of traditions and the creativity of individuals. Female craft makers, who are particularly close to my heart, play a pivotal role in this. Despite its significance, this industry faces considerable challenges, marked by informality, limited access to structured employment opportunities for women, a huge gender gap, and a striking deficiency in impact investment.
It’s an industry that spans textiles, jewelry, pottery, and beyond and too often operates on the fringes of the formal economy. For many female artisans, this means working under informal arrangements without the security of steady income, social benefits, or legal protections, while balancing their home chores with an intense, underpaid, and exploitative work life. This situation is exacerbated by a significant gender gap in economic participation and opportunities, where women, despite contributing immensely to cultural heritage and economies, remain totally underrepresented in leadership roles and decision-making processes within the industry.
A report by the International Labour Organization (ILO) highlights that women's work in the informal economy, including crafts, is often undervalued, underpaid, and overlooked by policy frameworks. Furthermore, despite the growing recognition of the importance of sustainable and socially responsible investments, the crafts sector receives less than 2% of global impact investment funds, as noted by the Global Impact Investing Network (GIIN). This lack of financial support stifles innovation, growth, and the sector's ability to contribute to sustainable development goals. Let’s not forget that the global Arts and Crafts market size was valued at USD 46,172.71 million in 2022 and is expected to expand, reaching USD 68,085.61 million by 2028, according to Business Research Insights.
So, what are the Pathways for Change? How do we ensure that a significant portion of that money reaches the artisans directly? That their communities, livelihoods, and futures are positively impacted?
You might think transforming the crafts industry into a more inclusive, equitable, and sustainable sector requires a multifaceted 5-step approach:
Enhancing Access to Markets: Implementing platforms and partnerships that connect artisans directly with global markets can help eliminate middlemen, ensuring fairer prices and better income for craft makers.
Financial Inclusion and Access to Capital: Financial institutions and impact investors need to recognize the crafts sector's potential for sustainable development. Providing tailored financial products, such as microloans and grants, can empower female artisans to scale their businesses and invest in sustainable practices.
Capacity Building and Education: Offering workshops and training in business management, digital literacy, and sustainable production techniques can equip artisans with the skills needed to thrive in a competitive market.
Policy Advocacy and Legal Support: Advocating for policies that recognize and support the informal sector, and offering legal assistance to navigate the transition to formal business structures, can provide a more stable environment for artisans.
Promoting Gender Equality: Programs specifically designed to empower female artisans, addressing the gender wage gap, and promoting women in leadership positions within the crafts industry are crucial steps toward equality.
Given that this approach has been tried for years via grants, initiatives, NGO programming, philanthropy, etc., without yielding the much-needed significant or groundbreaking results, don’t you agree that we might need to rethink this traditional action model? Allocate the already limited resources and investment in ways where more impact can be created?
This much-needed paradigm shift is something I have been advocating for a long time. I firmly believe that we have to reimagine the Middleman because, while direct market access is crucial, the reality for many artisans, especially those skilled in their craft but less so in business acumen, suggests a nuanced approach is needed.
The New Middleperson: A Partner in Fair Trade
The concept of the middleman (or as I rather would call the middleperson for gender equality purposes) has often been viewed negatively, associated with exploitation and unfair commissions. However, a new kind of middleman or bridge entity — ethical, skilled, and fair trade-certified — can play a pivotal role in transforming the crafts industry. This new middleperson acts not just as a bridge to the market but as a comprehensive support system for the artisan, handling the complexities of business while ensuring fair practices and sustainable growth, leaving the artisan to do what they do best: their craft.
Here are a few of the numerous roles these ethical entities could handle efficiently and create an immediate impact:
Ethical Representation and Negotiation: These middlepersons are adept at negotiating fair prices and terms that respect the artisan's work and livelihood, ensuring that they receive a fair share of the profit.
Market Access and Export Assistance: By facilitating access to international markets, managing logistics, and navigating export regulations, they enable artisans to reach a wider audience without the burden of handling these tasks themselves.
Marketing and Trend Analysis: With expertise in market trends and consumer preferences, these intermediaries can guide artisans on product development and innovation, ensuring that their offerings remain relevant and sought after.
Trade Fairs and Networking: Participating in trade fairs and industry events can be daunting and logistically challenging, or plain impossible due to high costs for individual artisans or even groups of artisans. The new middleperson provides opportunities for exposure and networking, connecting artisans with buyers, retailers, and influencers.
Capacity Building, Fair Trade Certification, and Compliance: Beyond business services, these intermediaries support artisans in achieving fair trade certifications and adhering to ethical and other standards, enhancing their credibility and appeal to socially conscious consumers and the ability to integrate into big supply chains.
Of course, for this model to thrive, a supportive ecosystem is necessary, where:
Intermediaries undergo rigorous vetting and certification processes to ensure their commitment to fair trade and ethical practices.
Artisans are educated about their rights and the benefits of partnering with certified intermediaries, fostering a relationship based on trust and mutual benefit.
Continuous monitoring and transparent reporting practices are established to maintain the integrity of this new middleperson-artisan relationship.
By championing a model that balances the need for business acumen with ethical practices and artisan empowerment, we can pave the way for a sector where creativity and culture thrive alongside economic success. This approach not only preserves the artisan's focus on their craft but also ensures their rightful place in the global marketplace — all while fostering a culture of fairness, sustainability, and mutual respect. Imagine how much impact at the artisan level we could create that way…
Photo: @Yadawee in Egypt a perfect example of Fair Trade new kind of a Middleperson social enterprise