Being a craft business owner in America is a lot of work. Artisan businesses create products such as clothing, jewelry, paintings, and other handcrafted custom pieces. While costs and marketing are major difficulties for these small businesses, a new survey of current and former craft business owners finds intellectual property theft is a growing issue. It’s become so pervasive that many businesses are finding their stolen work on major commercial websites.
31% of Artisan Businesses Face Intellectual Property Theft
One unique difficulty craft business owners face is theft. Nearly 1 in 3 (31%) have had their original artwork or designs stolen, and of those, 57% have found their work on a major commercial website. Most found their stolen work on Amazon, Etsy, Target, Shopify, and Redbubble.
While over half (59%) went on to report the person or store who committed intellectual property theft, 31% said the person did not get in trouble for it. Nearly 1 in 10 (9%) former artisan business owners say intellectual property theft was so bad they shut down their business.
Costs, Competition Among Top Struggles for Craft Businesses
Handmaking pieces isn’t easy, and it takes time and money. Nearly half (48%) of current owners say their biggest struggle when it comes to their business is the rising cost of materials to make their products. That may be why a difficulty for 35% is finding a price point that sells yet allows them to make a profit.
For others, a major challenge is creating a big enough online presence that brings in sales. Nearly 2 in 5 (39%) say one of their biggest struggles is competing against vendors that sell mass-produced goods or do dropshipping. Dropshipping is the practice of selling products from a third-party supplier.
Despite Theft Concerns, 3 in 4 Plan to Scale Up Craft Business in 2024
Despite these concerns, artisan businesses are resilient and optimistic about where they’re heading in 2025 with 97% expecting their business to make it through 2025, and 3 in 4 planning to scale their business. Most are planning to grow their business by putting more time into it or increasing their marketing and advertising.
Over half (53%) are also planning to expand their product lines in 2025, and 41% want to increase their production capacity. No matter how much they scale, 89% of craft businesses say it’s important to keep their products handcrafted.
Operating a small business isn’t an easy feat, especially with the fierce competition from other retailers. But it’s important. Handmade products offer a unique beauty and originality that can’t be found anywhere else. Though people sometimes struggle to find the best ways to support these businesses, data shows consumers want to buy these products and truly value the uniqueness and craftsmanship that they provide.
Methodology
In September 2024, we surveyed 384 current and former artisanal craft business owners. 55% currently own their business and 45% previously owned one in the past. Respondents ranged in age from 18 to 75 with an average age of 39. 56% were female, 42% were male, and 2% were non-binary.
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