Artisan Crafts Online

In recent months, the COVID-19 crisis has profoundly affected societies around the world, plunging the global economy into a deep recession. 

With the majority of cultural institutions forced to close their doors, the cultural sector has been one of the most affected. Tourism has largely ceased, impacting surrounding communities both socially and economically, and plunging local artisans in art and cultural sectors into a state of extreme economic and social fragility hence exacerbating economic poverty of the vulnerable group.  

The Artisan Crafts Online is an innovative solution to improve handicraft production and digital marketing of local artisans. If scaled globally, this solution will impact positively in the lives of artisans and Malians anywhere by increasing their income and employment opportunities, reducing poverty, increasing sales of locally-made handicrafts via online etc.

According to UNESCO (Museums Around the World in the Face of COVID-19 2020 report), with an estimated 841 museums/tourists attractions in Africa, representing only 0.9% of the world museums, local businesses around these museums are going through an unprecedented tough time than ever. 

The pandemic has resulted to confined populations and vulnerable groups such as local artisans, unable to share and celebrate their heritage – and notably their tangible and intangible cultural heritage and assets with visitors – and have suffered the loss of fundamental, economic and structuring cultural elements of their daily social and individual lives. These artisans and small businesses have been mostly affected by challenges experienced on the creative, art and cultural sectors; because they are at they are the vulnerable groups. 

The problem we are trying to solve is the inability of the local artisans and small businesses to make good sale in the creative, art and cultural sectors as a result of COVID-19 pandemic. Although this problem is global, but we are far more concerned that artisans in the developing countries are mostly affected by this problem due to the existing level of poverty, under-development and economic disadvantages.

We are creating an e-commerce platform that enables local artisans and small businesses in art, cultural and tourism-driven communities to sell their locally-made handicrafts around the world. 

The project will determine and implement specialized, high-value internet activities that will promote and market locally-made handicrafts from local artisans. 

With an improved mobile internet penetration-especially in developing countries, logistics networks, digital payments, culture and tourism readiness, e-commerce familiarity and urbanization this solution will be enabled to achieve the needed benefits for the local artisans and small businesses in creative, art and cultural sectors. 

The platform is an integrated mobile/web app that promotes and sells destination designed, launched and promoted handicrafts produced by local artisans and entrepreneurs.

The primary target beneficiaries for this solution are local artisans and SMEs specializing in arts, crafts, and design production for the tourism sector. They are the right-holders of the creative works to be housed by the platform. 

Earlier this year, my organization with support from Facility for Oil Sector Transformation (FOSTER) started an engagement with the artisan community in Nigeria under the project tagged #ArtisanVoices. Part of the activities held was capacity building workshops for the artisans to understand the impact of management of oil and gas sector in their businesses. Also we organized video documentary profiling the voices of the artisans on topical issues. It was this engagement that inspired my organization to investigate more about artisan economy and come up with this project- The Artisan Crafts online. This project has been a participatory project with the beneficiary community right from inception. 

The platform will benefit artisans in various ways such as improving sales of locally-made handicrafts by the artisans/SMEs; generating more jobs, employment and income opportunities for artisans and the sector; reduce poverty and hardship experienced due to effect of COVID-19 pandemic and other factors, increased global spending on handicrafts etc.

The emergence of COVID-19 pandemic has negatively impacted on the tourism sector thereby causing financial distress on artisans and small businesses especially in developing countries. Innovative technology such as e-commerce solutions is a greatest tool used in enabling small and new businesses, especially in untapped communities, to prosper and create good jobs through access to capital, networks, and technology. Our solution is an integrated mobile/web app that promotes and sells destination designed, launched and promoted handicrafts produced by local artisans and entrepreneurs.

Presently, there’s no competitor in this sector of e-commerce. What we are doing is system disruptive and innovative thinking in creative, art and cultural sectors that have never experienced such innovation ever before, particularly in developing countries that are full of tourism potential.

However, in comparison with existing e-commerce platforms in other sectors, companies like Jumia, Farmfresh, Ricult, Lima Links are focused on providing e-commerce services to agricultural and fast-moving consumer goods services. None of them is addressing the needs in art, cultural and creative sectors. Also, our solution is targeted at not just small businesses but the artisans therefore helping to address the economic poverty among the vulnerable groups.

Our solution adopts the following technology:

1. Data capture technology will be used elicit product information from the producers and their handicrafts products.

2. Web technology will be used in hosting the handicrafts products online and facilitate local and international sales of the crafts.

3. Mobile money technology will facilitate digital payments system between the sellers and the buyers hosted on the platform.

4. Logistics management technology will be used to handle the distribution and deliveries of the products.

Ricult is an end-to-end platform that supplies farmers with agricultural inputs and credit, as well as access to buyers at mills. Farmers use the Ricult app to
send a map of their farm, as well as GPS location, which Ricult uses to receivesatellite imagery of the farm. This information enables Ricult’s algorithm tothen recommend the optimal types of input based on local conditions, in addition to specific agricultural advice at the time of planting. This customised approach, designed by Ricult’s team of MIT graduates in the US, allows farmers to increase productivity and maximise production volumes. Through the data it collects, Ricult knows when a farmer is ready to harvest and uses this information to help fulfill buyers’ orders for commodities, such as maize,wheat and cassava.

Farmer acquisition

• Employs operational teams in Pakistanand Thailand, supported by partnerships with local stakeholders such as mobile operators and banks, to oversee farmer selection and education.

Platform

• Farmers access the Ricult platform through an app, which lets them view agronomic advice, request loans and acquire agricultural inputs.
• Buyers use the platform to view stock and place orders

Marketing &customer care

• Launched SMS marketing campaigns, as well as TV and radio advertisements
• Operational teams also assist with customer service

Paymentfacilitation

• Ricult’s application facilitates mobile money payments to farmers and buyers

Logistics
• Ricult uses third-party logistics services to pack and deliver items
• Buyers on Ricult bear the cost of logistics

Below explains the theory of Change for the proposed solution:

ACTIVITY: Develop digital platform to improve handicraft production and marketing by artisans and SMEs.

OUTPUT: An integrated digital marketplace that promotes and sells destination designed, launched and promoted handicrafts produced by local artisans and entrepreneurs.

SHORT TERM OUTCOMES: locally-made handicrafts hosted on the web and accessed anywhere in the globe

LONG TERM OUTCOMES: Increased income and employment opportunities for the artisans and local/small businesses.

IMPACT: Reduce poverty

INDICATORS OF CHANGE: Increased sales of locally-made handicrafts to existing tourism markets; increased employment and income opportunities.

TARGETS: 10% increase on global spending on handicrafts; # of people employed, # of local businesses operating

SOURCE OF INFORMATION: Business surveys, artisan economy surveys etc

The solution is currently not serving the beneficiaries because we are still prototyping our solution.

In one year, we plan to serve at least 10,000 artisans and small businesses

In 5 years, we plan to serve at least 1 million artisans and small businesses

Our project goal over the next year is to serve 10,000 artisans in 11 African countries. 

Also we intend to replicate this project in at least 25 developing countries in Africa, Asia and Latin America regions in the next five years. We hope to integrate 1 million artisans/users in the platform within the next five years. Also, we will deploy more featured and innovative technologies to make the platform more effective, efficient, responsive and impactful while addressing the needs of the target audience and beneficiaries.

The solution will work as a stand-alone social enterprise project away from the parent organization in the coming years.

The financial barriers envisaged are inability to secure sufficient funding to implement this visionary project which may discourage us from continuing in its execution.

Technical barriers may include: lack of relevant skilled project staff especially on IT projects like this, lack of technical mentorship platform for project like this one, technology glitches, technology inoperability and others etc

Legal barriers envisaged may be due to copyright issues, what form of business (full fledged business organization or social enterprise) will the solution eventually become and registration of the solution as a standalone organization away from the parent organization? Also deciding who will become the shareholders and what percentage of share to hold may become a legal barrier.

Market barriers may be logistical challenges associated with exporting handicrafts abroad, what legal frameworks that exist in operating countries where these crafts will be exported from, the market prices may also affect.

The cultural barriers envisaged is current pressure put on the repatriation of African artifacts from other parts of the world.

Financial and technical barriers will be overcome if eventually selected to participate in the SOLVE Challenge as finalist. Our selection will become a great morale booster as it will provide the needed opportunity to boost our financial and technical capacity in the project.

Legal barriers will be minimized by adopting an agreeable business  model for the solution in this early stage of the project development. Like we have already stated, this project will operate as a social enterprise model- taking the benefit of social capital into the utmost importance. Also, we will seek to build capacity to understand the legal framework involved in establishing social enterprises in our operating countries.

Market barriers will be overcome by adopting the best marketing management system in the project and ensuring that all required procedures and standards are created and operated.

The cultural barriers will be addressed by ensuring that fake news and information concerning the repatriation are publicly challenged. The emphasis is on returning STOLEN artifacts and not locally-made handicrafts.

The solution team is part of a larger non-profit organization called: Entrepreneurship Initiative for African Youth (EIFAY) which I am the Executive Director. The relationship is that this solution will run as a standalone, independent and offshoot social enterprise solution from the larger organization as mentioned above.

Full-time staff = 5

Part-time staff = 4

Volunteers = 15

Our project team is made up of mixed number of seasoned professionals and experts in project management, programming, strategic marketing, logistics management, innovation development, fundraising and monitoring and evaluation and social development.

Project Staff and their portfolios 

1. Emmanuel Acha- Executive Director/Project lead

2. Constance Chioma Chukwu- Senior Program Officer

3. Livinus Aniekwe- Partnerships Coordinator

4. Obiajulu Nebo- Fundraising and Grants Coordinator 

5. Iheanyi Igboko- Advocacy and Strategy Officer

6. Chinenye Okpali- M&E Officer

Therefore, we have the vision, skills, background and experiences-both as an organization and project team to successfully execute this project and achieve the needed impact

We are presently discussing partnership with Goethe Institut, Nigeria to support the artisan's art and cultural festival coming up October, 2020 as part of the initiative for the engagement of artisans in creative, art and cultural sectors.

The Artisan Crafts Online project is a part of the larger project of the organization aimed at promoting/ boosting artisan economy in developing countries around the world.

There are about 4 levels that describe the way we provide value to the populations we serve, both in terms of impact and revenue.

Level 1: At this level, we have an online platform, which provide market linkages between buyers and sellers of artisanal or locally-made handicrafts. This level is simply establishing the e-commerce platform.

Level 2: At this level of business model, in addition to providing an online platform, we have staff working for the recruitment/acquisition of artisans and small businesses owners as well as marketing and customer-care.

Level 3: Our solution at this level facilitate payments through our platforms and arrange logistics for local and international delivery, as well as the functions performed at level 1 and 2.

Level 4: At level 4, our solution conduct quality control activities, including identifying any defects and packing items ready for transportation to the buyer. These activities take place at the seller's workshop, as our business does not have access to purpose-built facilities such as a warehouse.

Level 5: At Level 5 – the highest level of involvement our e-commerce solution undertake warehousing of artworks or handicrafts in addition to the operational functions performed at previous levels.

We will generate revenues and income to fund our work using the following revenue generation streams:

1. Through donations and grants from donors

2. Through raising equity investment capital

3. Through mark up by placing margin to the product price paid to suppliers

4. Through commission fees by charging buyers and sellers an additional fee when they complete a transaction on the platform.

5. Through advertising and insights monetization

We are very optimistic that the above revenue streams can fund our expenses as social enterprise project.

I strongly believe that joining Solver can help me to achieve the following objectives:

1. Overcome financial barriers by receiving access to over $2 million in prize funding for the 2020 Challenge. This will help me secure sufficient funding to implement our solution.
 

2. Overcome technical challenges by receiving mentorship and strategic advice from Solve and MIT network of experts and helping me to attend Solve at MIT.

3. Overcome opportunities, connection and networking barriers by helping me to join a supportive community of peers, funders and experts to help advance our innovative work through Solve's nine-month program.

I need strong partnership to build skills and capacity in business model, solution technology, product/service distribution, understanding legal or regulatory matters, marketing, media and exposure.

Also, I need to build relevant connections and partnerships that will help me to generate needed funds for this innovative solution. This is why partnership in the funding and revenue model is very germane to achieve success in the project.

I would like to partner with strategic organizations that will help me to achieve my project goal and objectives. Such organization that:

1. Facilitate access to funding for social enterprise project like ours

2. MIT faculty or initiatives on social entrepreneurship development education

3. MIT faculty or initiatives on e-commerce development and logistics management courses

4. Organizations, MIT faculty or initiatives on the role of artisan economy on arts, cultural and tourism sectors

Our solution is highly qualified in The GM Prize on Good Jobs and Inclusive Entrepreneurship because it is focused on promoting inclusive entrepreneurship, income opportunities and decent jobs for the vulnerable populations such as local artisans or small businesses, and especially for the women and girls, rural, peri-urban, urban poor, low-income, minorities and previously excluded populations and persons with disabilities. 

Our solution is committed to enabling small and new businesses, especially in untapped communities, to prosper and create good jobs through access to capital, networks, and technology.