Findings
We asked 516 HCMs in India about their needs and challenges when accessing finance and investment.
Here's what we learnt.
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
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
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
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