This paper provides an accurate and up to date assessment of youths in the crafts industry and expected future trends.
The craft sector is attracting increasing attention in South Africa as a potential economic growth avenue anchored on technologically enhanced innovation and a driver for job creation. While this potential is exciting, the reality is that extracting value from the sector needs full understanding of its operational intricacies. For example, the crafts value chain is complex and requires specialised knowledge and skills set to be of economic value or cultural expression satisfaction. There is the provision of inputs (organic and synthetic), design, marketing, distribution, retail and consumption; all of which require specific industry training, expertise and capacity. These value chain relations are also highly contested and competitive, between producers, distributors and retailers.
It is estimated that hundreds, perhaps millions, of South African youths are engaged in some form of craft or the craft value chain (Gregory, 2019). The sector has shown great promise to improve economic opportunities for youths because it allows entry even for those with a relatively low skills base and minimal capital input. Its economic benefits are anchored on consumer demand for handcrafted, unique African-inspired products. Further, other income generation opportunities include; corporate and government artefact demand, boardroom accessories, local fashion industry decorations, interior decorative products for homes, hotels and restaurants.
This research found that the motivations for youth involvement in the crafts sector vary. These include creative expression, entrepreneurship, livelihood diversification, poverty alleviation and community development imperatives. Some of the youths entered the craft sector as a result of failing to penetrate their preferred industries. Upon entering the sector, the youths are predominantly sourcing capital from family members and social networks to procure required organic and synthetic inputs. This small start-up capital is in the form of soft loans with repayment expected upon generation of first sales income. Given their small capital, the majority cannot afford to rent or own manufacturing or office space. They are thus manufacturing from home (in the backyard), in open public spaces and in local community centres. For example, in Duncan Village in East London, the Buffalo City Metro has availed a free community centre for use by youths for manufacturing purposes. Eastern Cape youths are also assisted by the provincial and local governments through Craft Hubs. For example, the Mthatha Craft Hub has been very instrumental in enhancing the skills of the youths through product quality enhancement, enterprise development and marketing. The Hub assists registered youths in studying market trends so as to produce those items that are in demand. They are also provided business support in terms of company registration as small businesses and registration with SARS for tax clearance so that they can tender to supply government departments.
Their craft products can be broadly categorised as follows: beaded products, wooden, grassbased, clay, ceramics, plastic and leather products. While income generation varies per business, it is generally low. For example, the new start-up small businesses reported generating up to R1000 per month, those who have been existence for a few years (intermediate businesses) were making between R2000-R5000 per month while the established businesses with a track-record had profits of more than R5000 per month. Given that most of the interviewed youths were still in the start-up phase, this means they are generating very small profits. Despite this low profit, most of the interviewed youths, indicated that this covered some of their operational expenses with little to spare for basic food commodities. Those generating higher profits are able to meet their overall family food needs, transport costs and school tuition fees for their children.
Youths are facing a myriad of challenges in the sector. These include: financial constraints, lack of manufacturing space, limited specialised craft skills, limited marketing skills, lack of adequate information about the business elements of the sector, highly competitive local market, slow uptake of new technology to enhance product quality at low cost.
In an effort to address these challenges, youths proposed the following (a) the private and public sector should avail more start-up capital for organic and synthetic inputs and equipment (b) there should be further specialised skills development and training in order to equip youths with relevant craft knowledge, e.g., product quality development, business skills, marketing, branding and sales (c) affordable and secure product manufacturing space should be made available (d) technology adoption for innovation, improvement of product quality and lowering costs should be prioritised by the youths (e) there should be enhanced marketing of local craft to both local and international consumers so as to generate more profits for the youth (f) youths in craft should be encouraged to register their small businesses and run them formally. This will require requisite training, capacity building and financial assistance.
