The Craft Entrepreneur 2009 survey

Summary

The study Käsityöyrittäjä 2009 (Crafts Entrepreneur 2009) made by The Finnish Crafts Organization contains information on the situation in which crafts and design entrepreneurs find themselves today and what developmental challenges they are facing. Crafts and design entrepreneurs believe in their possibilities of maintaining business at its current level or even increasing it. The study reveals a firm belief in consumers’ interest in crafts products.

The material for the study was gathered through a web survey conducted in February 2009. The recession was in the news and in people’s discussions daily. However, this fact did not come up in the survey results. There were 213 answers. Eighty percent of the respondents were women entrepreneurs. Thirty-five percent of the entrepreneurs stated their turnover was below 10 000€ and sixteen percent stated it was more than 85 000€. Over half of the respondents saw their firm as searching to expand, a third aimed at maintaining the status quo, and only slightly less than 10% saw no growth-related goals. Eighteen buyers replied to the part of the survey conducted among purchasers and buyers.

Consumers’ shopping behaviour
Most of the respondents believe that there has been no change in consumers’ shopping behaviour, or that consumers buy more than before. Only one third believe that consumers buy less. Buyers see the situation slightly differently; one third think consumers buy less than before, one third think there has been no change, and one third believe they buy more than before.

Factors influencing consumers’ buying decisions
More than anything else, according to the crafts and design entrepreneurs, consumers’ buying decisions are influenced by the product’s unique, good quality, its price and the fact that it suits the buyer’s personal style. Buyers, on the other hand, give price as the first deciding factor, followed by quality, domestic origin and suitability to personal style.

Development needs for products
In the buyers' opinion, suppliers have a lot to do in developing their partnering skills (proprietary articles), marketing materials and package design. To a certain extent, there are also functional development needs in products (products need to be well-tested), product descriptions and appropriateness of segmentation.
 
Marketing activities
The role of web pages has become more dominant. Half of the respondents believe the numbers of contacts or orders through web pages have increased. The most important marketing activities for entrepreneurs are keeping web pages up-to-date, consumer fairs and trade fairs in Finland, customer meetings at each entrepreneur’s own workshop, keeping online shops and participating in international direct sales events.

Developmental challenges for businesses
In the opinion of the crafts and design entrepreneurs, the most worthwhile developmental activities include training, networking, supporting marketing and R&D, and organizing sales events and PR campaigns. In the buyers' opinion, entrepreneurs have a lot to do in developing their partnering skills (proprietary articles), marketing materials and package design. Buyers and entrepreneurs agree that newly-started businesses should manage product pricing better. Entrepreneurs wish to be subsidised when they hire their first employee.

Juxtaposed with the positive tone of the results of the survey, there is worry apparent in the open an-swers as to how entrepreneurs will cope, how the competition will develop, about piratism and, for example, taxation, which is felt as unjust. The interrelation of the business world and crafts as a hobby adds to the tensions experienced as some people feel that recreational crafts-related activities and tax-free sales confuse consumers, muddling their idea of price and quality.

Conclusions
The sources of success for entrepreneurship in crafts and design are found in the skills of entrepreneurs themselves, in insightful products and well-functioning marketing channels. The skill-levels of entrepreneurs can be influenced through high-quality vocational and adult education as well as through up-to-date business services. A good entrepreneuring environment is characterized by fair taxation as well as financing solutions conductive to positive employment decisions. R&D is a continuous process that can be encouraged by, for example, grants. Visibility and marketing channels can be strengthened through joint activities in which everyone in the field can take part.