Etsy and The New Artisan Economy

The future of small business is solo business owners working as artisans.  According to a study commissioned by Intuit and prepared by the Institution for the Future, over 21 million of the 26 million small businesses in the U.S. today are solo businesses.  And many of these are artisans.  The number is growing; the study predicts that “the number of personal businesses will grow from 21 million today to more than 32 million by 2018.”

Who are these new artisan business owners?

• They are skilled craftspeople who work with their hands and their minds
• They are savvy entrepreneurs who know how market their products
• They know how to use the Internet and advanced technology
• They use other artisans and businesses to provide assistance and support – accounting, web development, etc.
• They develop new products in new niches.

One great example of the growth of new small artisan businesses is Etsy, a web site that allows artisans to create mini-sites and show off their products and services.  Etsy, which says it is “Your place to buy and sell all things handmade,”  is kind of like eBay for crafts businesses.  On Etsy you can buy or sell everything from Art, Bath & Beauty, and Books to Vintage items, Wedding, and Woodworking crafts.  Etsy opened in 2005 and now has over 170,000 sellers around the world.  You can find all sorts of unique items on Etsy and it is a fun experience.

I found a quilted purse that I loved, but I wanted it in a different fabric.  I sent the fabric to the quilter, who put it together and sent it back.  I love it!  Etsy says their mission is “to enable people to make a living making things, and to reconnect makers with buyers.” Sounds like the artisan economy to me.

Back in Colonial times, before the Industrial Revolution, all business was small artisan business.  It seems we are going back to the past. I am over-simplifying, I know.  But I for one am looking forward to it.  What do you think?

By the way, the Intuit/IFTF study is fascinating and it is well worth your time to read.

Image source: plex @ sxc.hu