I recently read articles in both Inc. Magazine and Newsweek that talk about how the way out of the current economic recession will be lead by businesses, not government. And not just any businesses – the secret to economic recovery will come from new and growing small businesses.
I think there is a huge opportunity for craft and design business (like mine and yours) to contribute in big ways to revitalizing the economy. Sure, when you think about your individual business, it can be hard to imagine how it can have any impact on the economy. But taken together, our collective businesses can have a big impact. In fact, I’m so convinced that craft and other indie businesses can have a positive impact on the economy that I’m going to be talking about it all week long here on CMBA.
What I want to lay out is a roadmap for using our creative businesses to boost the economy. Because just saying that craft can help boost the economy isn’t enough. We have to take action.
Here are a few of the ways that craft can serve as a stimulus to the economy:
- A return to skilled manufacturing. In “How to Build Again,” Rana Foroohar talks about the need to balance out the overly high percentage of service industry jobs (around 70%) with other sectors, like manufacturing. And in order for the US and European nations to compete with manufacturing in developing nations, we need to focus not on trying to get cheaper, but on more innovative and skilled manufacturing. This is where craft comes in. Craft has historically been focused on the development of skill, and in order to boost manufacturing production, we need to embrace skill once again.
- The creation of new jobs. One of the biggest areas where the economy needs a boost is in the creation of new jobs. And this is where new and growing small businesses have the most to offer. Right now, many crafters are focusing on running a solo business. But this approach seriously limits our ability to have a positive impact on the economy. Yet, I understand that for many of us, the cost of bringing in another set of hands for our business seems out of reach. But instead, what if we focused on creating jobs that actually fuel the growth of our businesses?
- Boosting our exports. One of the other keys to economic recovery in the US is to boost the amount of goods we export. As businesses tied into the global marketplace that is the Internet (or perhaps the more focused global marketplace that is Etsy) we are no longer limited to selling our products in our local area. Instead, we can target our marketing efforts towards countries (or parts of your own country) that haven’t been hit quite so hard by the recession, and in the process, bring money back into our local economies.
Approaching your business as a solution to our current economic woes can also lead to a powerful mental switch. Instead of being at the mercy of a down-economy, you should begin to think of yourself as fueling the economic recovery. Instead of being powerless, you are leading the charge!
I’ll be posting more ideas about how craft can help boost the economy all week long here on CMBA. But in the meantime, I’d encourage to check out these articles from Inc. and Newsweek:
Revitalizing the American Dream
DIY Economy: Businesses Have to Fix it Themselves
And please feel free to share in the comments – how do you think craft businesses can contribute to economic recovery?
Microbusinesses not only have the power to help the economy to recover – they are actively SHAPING the economy into something new & different than what we had before. Arguably, this new economy will be much more sustainable AND will benefit individuals more, instead of giant corporations.
Richard Florida talks about this with his concept of the Great Reset. (I wrote about it here: http://www.scoutiegirl.com/2010/05/great-reset-indie-craft-movement.html)
Also, business that begin in a time of recession are actually MORE likely to succeed that businesses that begin in a time of prosperity. Why? It’s simple: these businesses are started out of necessity, desperation (the good kind – not the bad kind), and in direct response to consumer need. That’s a recipe for success if I ever saw one!
Great post! Encouraging to those of us starting out. Can’t wait to see what is next.
Great article, lots of ideas to think about in this situation we are living worldwide. I’m looking forward to the next posts 🙂
Great post!
Since I plan on keeping my business a part-time gig, I’m not sure I’ll be in a position to directly provide jobs… But I can use the money I earn from my business to support other indie businesses, either through personal purchases or the supplies or advertising I purchase for my business. And that means keeping money moving around within the community, and hopefully enabling someone else who runs a creative business to provide jobs.
The idea of smaller businesses creating a more sustainable economy makes sense. Lots of smaller businesses competing against one another keeps prices reasonable and encourages people to create the best possible products and services. Plus, if one or two of those businesses fail, it won’t have such a negative effect on the economy and those individuals associated with the failed businesses would probably have an easier time rebounding, since the failure of a couple of businesses within a particular industry won’t result in the entire economy going in a downward spiral.
Each morning I get up and look at, not the news but CraftMBA to see what’s on Megan’s mind. Another great thought and I look forward to the rest of the week’s post. You are so right. Tracy Porter did it… we can too!
I was reading that Inc. article you spoke of last week and couldn’t help but think of you and Tara. There is definitely change in the air! And I hope to be a part of it. I recently started writing a business plan with the three points you listed above in mind.
I fervently believe that a strong economy lies in the passion and skill of each person working within it. It’s almost a boon that the economy sucks right now, as Tara was saying, because if you’re an entrepreneur, or would like to be one, it brings to light the gaps that need to be filled in your local economy with skills, stores or things that you can make. I feel like the instability of the times has opened up a window for people like me to just go for it and start creating a niche for themselves that big business can’t fill.
You’ve started such a great think tank for these ideas Megan. It’s really inspiring to see so many people reaching for their passions right now and have a network of people to share them with. Big thanks to both you and Tara!
Great topic! Even in my little fledgling business, I can see how I make an economic impact in the communities I’m part of. I buy supplies from other businesses that I wouldn’t have otherwise. I’ll be engaging the services of a local accountant this year. I trade information and support with the other small business owners. I even like that the sales taxes I collect help support the beautiful state I live in.
It’s all about tapping into existing needs related to aesthetics. The whole DIY craze is still pretty intense. Just this past weekend I attended a fiber arts show and sale and I saw more wonderful, locally produced natural fiber yarns and materials that put Hobby Lobby and JoAnn’s bloated stock to shame. Sure these items are more expensive, but you are buying things at a fair labor price.
One way to access the DIY craze is to offer some of your skills to the public at large, modeled on the value-added concept on the ‘net. Starting in September, we’re going to try hosting a once a month free Sunday Sewing Circle, using a local coffee shop for the space. From there, we can gauge interest in longer format sewing workshops at my house. But by offering a few hours of free interaction and assistance to others who have always held an interest in sewing but have not had anyone show them how, everyone benefits. This is probably how we crafters are going to participate in this kind of revival.
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I am looking at this blog to start a home business and I love the idea of people supporting each other, real community living, we are on this earth to be creative and to support each other. Down with corporate greed, I can’t help thinking of sweat shops out there that are trying to dominate the market with creative mass production, every person should be able to have an honest craft that others appreciate and earn a living from. I LOVE this and I feel with the recession we must know we are not lost because of corporate greed rather found. I am working on a portfolio of work to join this beautiful community.