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Findings

We asked 516 HCMs in India about their needs and challenges when accessing finance and investment. 

Here's what we learnt. 

01             12

Only 1 in 10 HCMs have easy access to finance

88

%

Self-finance their operations, limiting scope and innovation

65

%

Find it difficult to access finance

24

%

Are unsure about how to even access finance

Indian Rupees

02             12

Lack of financial literacy is a major challenge for HCMs

87

%

Struggle with financial matters

52

%

View finding the right financial instruments as a problem

74

%

View finding the right investor as a challenge

90

%

Wish they had better engagement with investors

55

%

Need help understanding their options to secure investment

03             12

The government needs to step up ease of doing business

73

%

HCMs struggle to overcome complex certifications, policies, and tax directives

63

%

HCMs either have and don’t use or don’t have MSME registration indicating underutilisation

41

%

HCMs struggle with GST burden

Wood Carving

04             12

CMH has the potential to be a sunrise industry with serious money-making potential
and global ambitions

85

%

HCMs sell pan-India

55

%

HCMs target global markets

79

%

HCMs include a D2C channel

05             12

digital

formalised

HCMs are

Are micro, based on turnover

87

%

95

%

Have sophisticated, digitalised modes of receiving payments

& hungry

63

%

Fall within the profitable to break-even spectrum

for growth

06             12

Women-led HCMs and creative entrepreneurs are leading the way

70

%

Support a workforce with an equal or more women skew

95

%

Have women in the C-Suite

55

%

Are primarily women-led enterprises

07             12

HCMs are prioritising people, planet, and profits

89

%

Are focused on building brand, growth and profitability

33

%

Are committed to environmental sustainability

72

%

Make artisan wellbeing a primary focus

08             12

HCMs are underserved but raring to go 

91

%

Are open to external financing

79

%

Have never received external financing

09             12

HCMs are more than ready for catalytic capital

92

%

See catalytic capital instruments as a great fit

44

%

For-profits guarantee a competitive ROI

78

%

Struggle with a working capital funding gap

women basket makers

10             12

Women-led HCMs less likely to achieve optimal investor engagement

62

%

Women-led HCMs perceive a huge challenge in talking to investors

(vs. 48% men-led HCMs)

55

%

Women-led HCMs find it a massive struggle to understand what funding options are available

(vs. 33% men-led HCMs)

11             12

CMH is not viewed as an

integral

HCMs are limited by negative stereotypes associated with the sector

83

%

part of the

economy

HCMs believe consumers do not understand the value + price of handmade

63

%

66

%

HCMs believe the investor + policy ecosystem view arts / crafts as nonprofit or charity cases

12             12

Financing gaps block thinking big and hiring right, limiting scale and potential

76

%

HCMs are stunted by a finance gap that limits capital expenditure

71

%

HCMs struggle with a lack of funds to measure and maximise impact

70

%

HCMs are kneecapped by lack of funds to hire designers who will work in remote, rural areas

The current financing needs show an “expanded missing middle” in the CMH sector that ranges between ₹5 lakhs ($6,250) to ₹5 crores ($625,000) depending on the size and scale of the enterprise.

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