CODA Survey Results: Sidebar 4 (TCR 5/01)

The $14 Billion Crafts Industry

CODA Survey Results: Sidebar 4

Why Are the Results So Important?

There are several reasons why this study was conducted and why the data is important.

1. Craftspeople need current financial data on the industry to include in their business plans to apply for bank loans.

2. Directors of craft guilds and organizations say it is crucial to have economic impact statistics to apply for economic development funds from state legislatures, the Small Business Administration, private foundations, etc.

3. The economic impact data will be used by art and craft schools, and by art departments of universities to prove to administrators, students, and others that craft artists do contribute to the GNP (Gross National Product) and can make a living wage.

4. Study findings validate the craft industry as a viable industry. The study should boost the self-esteem of the craft community by showing them the significance of their economic contributions, in addition to their recognized aesthetic and cultural contributions.

5. Economic impact study data will call attention to the craft industry's importance to state tourism. This is especially true for states that have a strong potential for heritage/cultural tourism products.

6. The study should draw attention to small and home-based businesses, both growing segments of the U.S. economy. Generally, small businesses are defined as those with up to 500 employees, according to the Small Business and Technology Development Center at Appalachian State University. Ninety-seven percent of U.S. businesses have fewer than 100 employees, and 85 percent have fewer than 20. In the craft industry, a studio with 10 employees is considered large. The federal government does not readily recognize this home-based business format because of the small size and the lack of appropriate NAICS codes (North American Industry Classification System codes, the index for statistical reporting for all economic activities of the United States, Canada and Mexico, which replaced the SIC codes).

MAY 2001: TABLE OF CONTENTS