Shojanoori et al., Int. J. Rev. Life. Sci.

, 5(10), 2015, 91-102

ISSN 2231-2935
Research Article
www.ijrls.pharmascope.org

An Analysis of the Environmental Factors Influencing the Handicraft

Development
Foroogh Shojanoori 1*, Maasoumeh Jamali 2, Farzaneh Honarbakhsh3, Nikoo Shojanoori4, Morteza Akbari5
1
Assistant Professor of the Women Research Center; Alzahra University
2
MA in Entrepreneur Ship from the Tehran University, [email protected]
3
Academic Member of the Art Faculty; Alzahra University, [email protected]
4
Academic Member of the Art Faculty; Alzahra University, [email protected]
5
Assistant Professor of the Entrepreneur ship Faculty; Tehran University, [email protected]

ABSTRACT

In today's global policy, in order to achieve a sustainable development, the handicraft sector has received a par-
ticular attention as an important part of cultural industries. The present article mainly attempts to study the envi-
ronmental factors affecting the development of the handicraft and its competitiveness in domestic and interna-
tional markets. Handicraft development is influenced by tourism industry development and represents the local
traditions and indigenous populations, as well as a symbol of places visited by tourists. Thorough review of envi-
ronmental factors influencing the development of the handicraft, both internal and external environment, is es-
sential for adopting appropriate policies. Because from one hand, compliance with these conditions is essential for
the survival of businesses and on the other hand identification of these factors enable governments to develop
this critical industry and to generate wealth inside the country by the adoption of effective laws and regulation.
Using descriptive-analytical methods and by collecting relevant information from various sources, the present
article attempts to investigate political, economic, social, technological and other factors associated with handi-
craft development. A study of strengths and weaknesses, threats and opportunities in the industry indicates that
the development of handicraft depends on quality enhancement and paying special attention to the needs of the
market, to compete in domestic and global markets. In this context, paying attention to the nature of the handi-
craft, manpower employed in the industry, investment, technology level, the necessary infrastructure and geo-
graphical distribution of production sites are of great importance. It seems that by improving the business envi-
ronment, the development of use of new technologies, create incentives to increase private sector investment, it
is possible to help the development and competitiveness of the handicraft industry.
Keywords Cultural Industries; Handicraft; Handicraft Development.
INTRODUCTION ical policies. Such policies can help the development of
rural areas and reconstruction of remote cities and
Nowadays, the cultural industry in more developed or
play significant roles in the poverty eradication, job
developing countries has received special attention.
creation, enhancement of local economy in remote
This industry includes large sections of economic and
villages and towns and also increased self-confidence.
artistic activities, including handicraft, music, cinema,
So it is reasonable to adopt appropriate and coherent
printing, publishing, and multimedia industry.The
logistic, industrial, cultural and commercial policies,
common characteristic of cultural industries is that
along with creating a perfect environment to develop
they all utilize creative, cultural knowledge and intel-
and encourage such type of industry (UNIDO &
lectual property for their products and services with
UNESCO, 2005: 11).Many countries also benefit from
social and cultural meaning. Recent international at-
the handicraft as a part of cultural tourism, because
tention paid to cultural industries is considered a as
handicraft industry is regarded as a source of job and
part of the emerging worldwide strategies for sustain-
income for them. Handicraft is an integral part of the
able development (UNESCO, 2007: 3-11).In many de-
tourist experience that represents the local traditions
veloped and developing countries,the promotion ofthis
and indigenous populations, as well as a symbol of the
category of industries has been incorporated into polit-
places visited by tourists and their experiences (Mosta-
fa, 2011). Handicraft is an ideal subject for creative
* Corresponding Author entrepreneurs as a means of subsistence and inde-
Foroogh Shojanoori pendence (Barber &Krivoshlykova, 2006).Despite the
[email protected] many attempts that have been made in the develop-

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ment of handicraft in Iran, this industry suffers from a part of basic production stages by hand and hand tools.
severe recession. Malekjany (2008: 99) states that the Each piece of such hand-made products manifests ar-
status ofhandicraft in Iran economy is minimal. While tistic taste and intellectual creativity of its maker and
Arthur Pope (2008: 10-6) argues that Iranian art is an this is the main distinguishing factor of such products
important historical phenomenon. Malekjany (2008) from machine and factory artifacts (Yavari, 2010:7).
also argues that the attractions of the handicraftthat
2-1 Characteristics of Handicraft
roots from the nature, culture and religion of Iran is a
boon for Iran economy. In case it was possible to con- UNESCO (2007: 12) regards common and unique fea-
vert handicraft would into the capabilities powerful ture in all of the cultural industries, including handi-
enough to generate constant currency exchange reve- craft, as human skills and knowledge involved in the
nue, the country's socio-economic sustainable devel- process of production. According to Yavari (2010: 8)
opment would be highly likely. It seems that the most some characteristics of handicraft include performing-
basic and prominent profession of Iranian ethnic some basic production stages by hand, providing the
groups has been paying attention to art ranging from bulk of raw materials from local sources, having cultur-
writing to clothes and furniture and war tools. Howev- al meaning, the lack of need to invest a lot, the ap-
er, Brojeni (1999) argues that the handicraft has not plicability of its products, having a value added high
been able to sustain its prominent status as in old days compared with other industries, the ability to create
and the exporting of handicraft is not satisfactory. Here and develop in different areas (urban, rural, and tribal
the question is what factors are important in the de- communities), mobility of experiences and production
velopment of the craft? And what are the characteris- secrets and techniques in oral from or according to
tics of the environment that influences the handi- teachers and students’ procedures.
craft?Therefore, the main objective of this study is to
The handicrafts can also have other advantages such as
identify the environmental factors affecting the handi-
proper work hours, possibility to work at home, free-
craft production in Iran.In other words, this study seeks
dom in managing the business, and proving those with
to answer the question of what are the environmental
a limited economy and cash with a high level of self-
factors influencing the development of handicraft?
sufficiency (Barber &Krivoshlykova, 2006).
Finding an answer to this question is important due to
the fact that the existing agencies in each industry an- 2-2 Economic, social and cultural consequences on
ticipate the present and future trends and situations by handicraft development
examining the factors influencing that industry. And on
Handicraft along with information technology and
the basis of such anticipations, it is possible to adapt to
communications (ICT) is an integral part of new
changing conditions.
knowledge-based economy. Such industries ranging
THEORETICAL LITERATURE from handicrafts to performing arts and multi-media
development have become the sectors undergoing
Definitions
quick economic growth following industrialization
1-Cultural and creative industries: the concept of “cul- (UNESCO, 2007: 3). Regarding the significance of hand-
tural industries” is almost synonymous with the con- icraft in economy, Malekjani (2008) states that in case
cept of "creative industries”. While the former places it was possible to convert handicraft would into the
more emphasis on cultural heritage and artistic and capabilities powerful enough to generate constant cur-
traditional elements, the latter underlines individual’s rency revenue, the country's socio-economic sustaina-
creative talent and innovation and also exploitation of ble development would be highly likely. This is because
intellectual property (UNESCO, 2007:11). However, one of the main strategies to protect Iran economy
UNIDO (United Nations Industrial Development Organ- against the destructive effects of price volatility and
ization) and UNESCO (2005:11) are referred to as a instability in the market of other products is the devel-
group of cultural and creative industries that can lead opment of handicraft. Furthermore, handicraft devel-
to tangible or intangible artistic creative output and opment can bring about more efficient wealth distribu-
have sufficient potential for income generation tion and balanced development of underprivileged
through exploitation of cultural property and produc- area. Yavari&Nourmah (2001:27) believe that revival
tion and also services built upon artistic knowledge ( and development of handicraft can result in generative
both traditional and modern), and include thirteen job creation for a variety of urban, rural and tribal
sub-categories namely advertisement, art and antiqui- population. On the other hand, UNIDO & UNESCO
ties, architecture, handicraft, painting, fashion, cinema, (2005:11) state that the handicraft play a critical role in
interactive leisure, music, performing arts, publishing, the development of tourism, indigenous economy and
television and the radio. job creation (Muhammad AbiSofian, Azman, 2010).
Also, strengthening such industries is a key to sustain-
2-Handicraft: handicraft is defined by a group of hand-
able development and thus development and exten-
icraft scholars as a set of art-industry that the resultant
sion of traditional sectors in a community in which
hand-made product and object is designed and con-
poverty has been deeply rooted. Therefore, in the re-
structed by using local raw material and performing a
cent years, much emphasis has been put on the en-
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hancement of culture in the national development time in the offices of handicraft industry and executive
plans as a tool to achieve sustainable development, research centers in different provinces. Another chal-
because cultural industries play key roles in the ac- lenge of the present study was dispersal of production
complishment of such strategies (UNESCO, 2007:3). units that made difficult familiarity with the problems
of manpower and their production techniques and so
UNIDO & UNESCO (2005:11) highlight the impact of
there is not accurate and comprehensive statistics for
handicraft in creation of social capital and reducing
doing effective evaluations.
poverty along with other achievements. They also state
that it is logical to adopt coherent logistic, industrial, Use of PEST Matrix in the analysis of internal and ex-
cultural and commercial policies, along with creating a ternal environment of handicraft industry
perfect environment to develop and encourage such
1- External Environment:
type of industry. The future development of handicraft
is essential due to two reasons: firstly, inheritance of 1-1 Economic Factors
traditional culture in terms of preservation, mainte-
The investment of the private sector is one of the most
nance, and also promotion of traditional handicraft,
significant variables of macro economy in each country
and secondly, to promote local cultures and industries
that its evolutions is closely associated with economic
and to find new development directions in this context
development and is of critical significance (Arabmazar,
(Dan Lin, Shiang Li, 2010).Michael Keane, quoting from
Nazarigovar, 2012). The investment in Iran handicraft
Hu Huilin (2007) states that the practitioners of domes-
sector is under influence of a series of factors that are
tic cultural industries should be encouraged to export
sometimes motivating and sometimes threatening that
cultural products to external markets because this
will be further clarified later.
leads to further protection of cultural security against
cultural imperialist powers in the world. Also, Yava- 1-1-1Inflation Rate
ri&Nourmah (2001:27) regard other consequences of
Inflation rate is a harmful economic phenomenon that
handicraft development as reduced migration to cities,
can impose a high and acute rate of social and eco-
fringe income for rural and tribal people and conse-
nomic costs on communities. According to the Iran
quently agriculture and husbandry boosting, further
Central Bank report on the inflation index, since 1936
social equilibrium, ethnic heritage and national identity
to 2012, this index has been constantly positive and it
preservation.
has been two digits especially in late 20 past years (Iran
Research Methodology Central Bank, 2013). The impact of inflation is the con-
stant increase in prices, thus it can reduce customers’
The research was done based on a descriptive-analytic
purchasing power. Inflation rate can have long term
method. The data collection was conducted by a li-
and short term negative significant impacts on private
brary- and field-based method (workshop observa-
sector investment. The results indicate that the impact
tions). The environment was examined both externally
of inflation on investment follows an asymmetric ad-
and internally, and attemptswere made to identify the
justment process. The inflation rate threshold level is
most fundamental environmental factors influencing
estimated by 11.9. In case such rate goes higher than
handicraft industry using PEST Technique as a method
this threshold, the inflation can negatively impact in-
built upon political, economic, social, technological and
vestment, i.e. if the inflation rate is higher than this
legal factors, in order to ultimately obtain a set of in-
level, it can have a reverse and significant impact on
fluential factors and to introduce some proper strate-
investment decisions. One percent increase in inflation
gies for improving the situation given all the relevant
rate higher than the optimal threshold level can reduce
factors, and also to anticipate the probable changes in
investment by 0.283 and roughly by 0.66 in short and
these factors and to measure the possible conse-
long term, respectively.Higher inflation rate can pre-
quences of such changes on handicraft industry. This is
vent investors from retention of their actual property
because the situation of general environment plays
(Arman, Mirabizadeh, 2012). On the other hand, the
significant roles in understanding links between busi-
inflation rate can influence customer purchasing power
nesses and environment (Danaeifard, 2009:115). In
and lowers tendency toward some unnecessary con-
addition, in terms of internal environment, as handi-
sumer goods. UNIDO & UNESCO (2005:15) argue that
crafts are administered often in the form of house-
in case of increase in income further than meeting
holds, small and traditional workshops and without a
basic goods, demand for goods with ethnic identity will
coherent structure and organization, the manpower
be raised, thus a new market created. Consequently,
engaged in this area and technology subcategories are
some opportunities can be provided for cultural crea-
investigated in the current study. Two of the challenges
tive industries both in industrial and developing coun-
faced by the present study include research limitations
tries. As most of handicrafts have lost their applicability
and lack of resources that mainly roots from the relo-
with time, and have become mainly as a decorative
cation of handicraft organization and some books,
object, by a reduction of customers’ purchasing power
documents and research to Shiraz and Isfahan. A por-
tendency toward these artifacts has become progres-
tion of research and books are kept in warehousesand
sively lower and lower and the customers give high
another portion is accessible by investing high cost and
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priority to more essential commodities. When econo- tional costs. Meanwhile, it is not possible for them to
my suffers from high inflation, even handicraft con- increase their circulating capital by receiving loan from
sumer goods cannot compete with alternative factory banks. This is because all bank loans are accompanied
products that have a lower cost due to the use of tech- by high interests which it is not cost effective to do
nology and mass production. However, it is possible to such work. So even when small scale workshops with
consider the issue of inflation from a different perspec- the limited number of manpower are faced with a high
tive, and it is that handicrafts are grouped in the cate- rate of order, it is not possible for them to fulfill all the
gory of applied industry and huge investment in this orders due to the lack of sufficient manpower. For
area is not necessary. When a proper strategy and plan example, in 2013, a small workshop that had accepted
is adapted to lower prices and to make handicrafts an order of 30.000 pieces for New Year market was
applied and also to incorporate it in household daily able to produce only 4000 pieces with all its efforts and
shopping list, economy will be further boosted and a so it was forced to deliver reminder of the orders to
more secure space can be created for investors and other workshops.
planners (Aaker, 2007:134).
4-1-1 Currency Exchange Rate
2-1-1 Unemployment rate
This rate links prices to global market through goods
The unemployment rate in 2011 was announced as market and finance, and is regarded as a factor influ-
12.3% by Iran Statistics Center that was reduced by encing policies, strategies, daily mechanisms,political,
1.2% compared to the previous year. This rate in ur- social, and cultural structure. Currency exchange rate
ban and rural areas is reported as 9.9 and 13.7%, re- can influence the price of imported goods and service
spectively (Iran Central Bank, 2013:29). This report is in domestic market and the prices imported capital
indicative of high rate of unemployment in Iran, espe- commoditiesand those manufactured inside the coun-
cially in rural area and the need to pay attention to try (MousaviMohseni, Sobhanipour, 2008).
applied and job creator industries.
By an increase in real currency exchange rate, non-oil
Isazadeh&Ghodsi, quoting from Aminifard, state that exports will be increased accordingly. So, it is possible
Iran is one of five historical countries in the world and to introduce real currency exchange rate as a motivat-
one of the ten richest world countries in terms of natu- ing policy for non-oil exports. However, it should be
ral resources and tourism attractions. Therefore, it is noted that currency fluctuations and the impact of
expected that Iran is able to become one of ten top currency risk effect on exports are negative. Risk-
countries in terms of tourism attraction. However, un- evading exporters react to high rate of currency fluctu-
fortunately Iran is not even placed among 50 top tour- ations by reducing the export volume. Therefore,
ist countries in the world. Tourism industry includes a adoption of proper policies to reduce currency volatili-
wide range of economic activities including production ty rate and the use of some tools to cover currency risk
of souvenirs and handcrafts, which one of the most are necessary for exporters (Raskhi, Shahrazi&Abollahi,
significant advantages of tourism industry is that it is 2013). Pedram, Shirinbakhsh and RezaeiAbyaneh
the most important job creator industry in the world. (2012) argue that an increase in currency rate on the
industries whose exporting goods are dependent upon
3-1-1 Interest Rate
facilities, machinery and imported commodities can be
The bank real interest rate has a significant and nega- effective, so that whatever the share of such equip-
tive impact on private sector investment in short and ment is higher in exported commodities, the price of
long term. The variable coefficient of bank real interest exported commodities will be higher and thus it can
rateis estimated by -2.66 in the long term, indicating lead to the failure of the policy of national currency
that one percent increase inbank real interest ratecan depreciation. As it was indicated in defining handi-
reduce private sector investment by -2.66 (Arab Mazar, crafts, these industries are made of indigenous raw
Nazarigovar, 2012). Providing household workshops materials. So increased currency does not significantly
with low-interest bank facilities (e.g. Mehr Reza Fund impact the handicraft,which is not dependent upon
facilities) is one of the factors encouraging investment capital commodities and imported services, and it has
in household business sector and handicrafts. With even a positive impact. However, regarding other types
regard tothe problems of handicraft producers with of handicraft like carpentry that require machinery and
receiving loans, AlirezaGhafari (2014) states that hand- instruments such as gouge, grindstone, file, saw bow
icraft is a user-based industry and most of the work is and cutting machines, increase in currency can influ-
done by hand. Therefore, in order that a workshop ence the finished commodity price to some extent.
turns into an economic enterprise, it requires high
Mousavi Mohseni & Sobhanipour (2008) also believe
number of manpower to achieve a high production
that depreciation of money can lead to an increase in
rate. On the other hand, a workshop with 5 workers
the price of imported commodities, thus it can raise
and over should pay higher premium and taxation by
demand for domestic products and enables them to
23%. Thus, producers must have a high circulating capi-
compete with foreign goods. Though, it should be not-
tal in order to afford high costs relevant to vast work-
ed that fluctuations in non-governmental and official
shops and high number of manpower and other addi-
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rates of currency exchange can affect any volatility and foreign commodities and promotion of the West life-
change in consumer price index and wholesaling as two style and culture. Underlining the impacts of some in-
real bases for inflation rate. Therefore, in case the efficient governmental policies such as evasion of ex-
quality of handicrafts was increased same as the facto- porters from paying currency obtained from exports to
ry products, money depreciation could result in higher Iran Central Bank and closure of public handcraft stores
competition. and also lack of support of small size local producers,
etc., Bakhtiari (2014) states that “until 1993, handicraft
5-1-1 Government economic policies: Henderson re-
situation under the control of the Ministry of Industries
gards one of the challenges faced by rural entrepre-
was very good. In that period of time, only in the area
neurs as remoteness and small size of village and also
of glass blowing industry there were 220 active work-
the lack of communication infrastructures for access to
shops that their products were exported to foreign
market and technical knowledge (Eftekhari &
countries. However, due to the negative impact of the
SajadiGhaidari, 2010:27). Distance is an explainable
inefficient government policies on handicraft industry,
issue in rural areas. These areas are remote from main
200 active glass blowing workshops now have reduced
urban centers and this makes all forms of link and
by almost 12. On the other hand, the government poli-
communication more costly. As the roads and transfer
cy to impose some limitations on imports and to in-
time are longer, costs are so higher.
crease custom tariffs led to a reduction in the imports
Also, many rural areas have a small populations, which of Chinese products and thus greatly helped handicraft
this affects production rate and use of public service. In producers.
the rural areas with limited yet dispersed population,
6-1-1 Taxation
costs of communication between people through mar-
ket or government intervention is high as well. While if In Iran, to encourage investors to invest in handicraft
we want to make rural cooperatives and households sector, tax exemptions are introduced as one of the
involved in the strengthening of national economy, it is most important encouraging tools announced by the
necessary to provide sufficient service and facilities at governor general offices of most provinces. The inves-
site (OECD, 2010:28). The presence of infrastructure tors who become engaged in this area are not con-
establishments such as airport, main communication cerned about tax only when tax officials ascertain their
ways outside and inside provinces, etc. can promote activity as the builders of handicraft workshops. How-
handicraft productsby directly influencing product sale ever, most of the time, when officials have not suffi-
and their distribution channels. For example, a study cient expertise to identify the originality and authentic-
performed on pottery in Fars Province in 2011 indi- ity of handicrafts, or producer is not able to ascertain
cates that two workshops established in the city have the authenticity of its productsrelevant workshop can-
been constructed at the vicinity of earth mine 10 km of not take advantage of tax exemption.This problem can
Grash City, due to road problems and traffic saving. be seen especially with regard to the group of handi-
Also, due the lack of electricity in the areas, all the ac- crafts that are new or modern technologies have been
tivities in the workshops including wheel turning are used in their production or their production happens in
performed without electricity (Herami, 2011:32). the factory or invery high numbers (Abadinaghsh,
2014).
Unfortunately, while handicraft development can be a
good strategy to protect the national economy against 2-1 Demographical and Social factor
the adverse effects of price volatility and instability of
1-2-1 Lifestyles and consumer preference
market of other industrial products, it seems that Iran
economic policy has not long taken advantage of this The growth of urbanism, distancing from genuine val-
great opportunity. Concerning the status of handicraft ues, and immersion in a bulk of soulless and senseless
in Iran economy, Malekjani (2008) argues that “of 25 commodities have greatly impacted man’s life. In this
economic sectors in Iran, handicraft has the place of context, handicrafts that root from nature, culture and
18, emphasizing its weak role in the economy. This history and religion of Iran can act as a way to revive
means that the economic policies in Iran, especially in the elegant forgotten past and establish a link between
two late decades, have not been able to enhance the man and its lost identity. On the other hand, the uni-
status of handicraft and to utilize its positive impacts verse has been increasingly encountering bio-
on the national economy”. Jacob Pollock and K. A. Ab- environmental problems and threats that affect human
bot, Kent Dosserci and other figures who visited Iran in race and other creatures and ecosystems (Dabiri, et al;
Qajar era all reports on the severe weakening handi- 2007) and it is necessary more than ever to reconsider
craft products such as weaving, coppersmithing, and our life style and to pay special attention to increasing
pottery, etc., in Iran at that particular age due to the trend of environmental threats. Undoubtedly, we are
inefficient policies, so that Tahvildar (2009:56) gives a entering a new universe. However, it is not clear
detailed review concerning broke or almost forgotten whether this modern world is an arena for the fall or
professions of clothing in Isfahan at the age of Mo- decline of environment and or it is an arena for the
hammad Shah due to the lack of support of domestic revival and revitalization of environment and economic
industries and in turn importation of a huge volume of development (Brawn, 2008:243-252). Paying attention
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to the green chain is one of the issues that has increas- yet with the same form and structure enter into the
ingly developed and institutionalized. The green chains market and makes customers so disappointed. There-
guarantee value creation, waste reduction and intro- fore keeping the quality for marinating the market is an
duction of an ideal plan to control waste matters and important point that must be always taken into ac-
their recycling. These chains have received the atten- count. Thus the most critical thing is quality rather than
tion of many small- and large scale organizations and price, because customers always pursue high quality.
different fields and industries. Management of com- Mostafa (2011) considers quality as a major factor in
plex relations and material flow in organizations and advertisement, and quoting from the World Trade Or-
cultures is a basis for reacting to challenges faced by a ganization (WTO) states that a high quality handicraft
green supply chain. This chain is the supplier of a wide not only is reminder of good memories in the mind of a
variety of advantages (Larson, 2011). Creative indus- tourist, it can motivate others to pursue such product
tries often are able to establish a good relationship and even purchase it by any means. Brojeni (1999)
with environment, and they can bring about the indus- believes that the lack of package, small volume of pro-
trial development (UNIDO & UNESCO, 2005: duction, limited range of promotional activities and
19).Handicrafts as creative or cultural industries are lack of quality of some commodities are some weak-
qualified to receive the brand of “the green supply nesses of handicrafts and the exports of such commod-
chain” due to some advantages including use of natural ities should be prevented and many attempts should
resources in their structures, their complete after-use be made to enhance the quality.
decomposition in the nature, use of hand in the major
Malekjani (1999) also underlines the lack of advertise-
part of their construction and finally creation of mini-
ment and presents some suggestions as the govern-
mum air pollution. This privilege provides handicraft
mental support of the presence of handicrafts in inter-
industry with a special competitive advantage in a situ-
national markets, advertisement through public media,
ation that factories have been forced to pay a large
creation of handicraft showcases and exhibitions in
sum of money for pollution taxes.Enhanced level of
residential and tourism centers and all the centers ca-
education in Iran and other countries increasingly has
pable of attracting visitors. Finally, UNESCO (2005) rec-
led to the more reaction and sensitivity of people to
ommends some other strategies including border festi-
health domain and the relevant issues and awareness
vals, exhibitions, cultural touring programs, paving the
of the damaging impacts of the pollutants. According
way for enhancing culture and tourism. Concerning the
to researchers, the growth the green products is a
impact of exhibitions on how to find foreign markets,
hopeful sign (Allan Dernick, 2008:94). Concerning the
Abadinaghsh (2014) claims that “about 15 years ago,
poll held in Denmark in 2008, Larson (2011) writes that
due to participation in different domestic and foreign
82% of respondents are inclined toward implementa-
exhibitions and also the unique quality of my products,
tion and planning of the green supply management
many orders from all around the world were arrived in
strategies. Therefore, it could be said that the populari-
my workshop (composed of 25 workers) until it led to
ty of the applied handicrafts is not only due to its his-
the opening of a permanent exhibition in Amsterdam.
torical and cultural roots, but also due to its sensitivity
These exports, up to 7 years ago, reached 2 to 3 tons,
to the nature and its increasing interests of the con-
which due to the sanctions imposed on Iran the exhibi-
sumers shown toward it (Larson, 2011).
tion was closed and all the products blocked”.
2-2-1 Brand: a powerful commercial brand can be a
3-1 Political factors
highly valuable property. A company with a popular
brand benefits from a special competitive advantage, The most common form of government actions for
and it can also makes consumers loyal (Parsaeian, encouraging or prohibiting each work is law (Osborn,
2007:378). The brand determines the expectations and 2005, 353). The strengthening of cultural industries
views of customers toward the company (Aaker, requires a unified political development. In increasingly
2007:160). One challenge raised in creative and cultur- growing economies, the governments have invested on
al industry of handicraft is the lack of a brand and ISO doing studies and research and development of politi-
standard (Dan Lin, Shiang Li, 2010). So it should be un- cal actions that contribute to further development of
derlined that having a popular brand in handicraft in- creative and cultural industries. However, in many of
dustry is a highly critical key to success. developing countries, cultural and creative industries
do not take advantage of a distinguished place within
3-2-1 Advertisement & popularity:
the framework of national planning and development
Unfortunately, despite success of the Western coun- strategies (UNESCO, 2007: 3).
tries in utilizing advertisement to increase their com-
1-3-1 Legislation in the foreign and international are-
modity sale rate, Iran has not been able to advertise
as: this component can indirectly influences product
sufficiently on handicraft industry, and worse than this
exports and tourism industry. As there is a highly close
situation is the fact that even when a special commodi-
association between tourism development and handi-
ty due to its high quality has attracted much customer
craft development, so the former can significantly in-
after a while is duplicated by either workshop itself or
fluence the latter.
duplicating workshops, and losing its initial high quality
©JK Welfare & Pharmascope Foundation | International Journal of Review in Life Sciences 96
 Shojanoori et al., Int. J. Rev. Life. Sci., 5(10), 2015, 91-102

ment this strategy, people find motivation to avoid

environment pollution and the agencies that invest
2-3-1- business climate policy: This policy is considered
their money and time to reduce pollution would be
as one of the factors affecting the business. According
highly susceptible in terms of competitiveness. If the
to the World Bank (2014), Iran ranked 152 among 189
pollution leads to exorbitantcosts, the industries do
countries in terms of its business environment.General
their best to avoid this additional cost through some
characters of the business environment on the basis of
effective strategies such as innovation of a cleaner
10 smaller characters include ease of starting business,
technology, change in consumption fuel, and use of
business licenses, employing workers, property regis-
renewable material and saving in energy consumption
tering, getting credit, protecting investors, tax, trade
(Osborn, 2005, 325-326).This means that the competi-
globally, contract enforcement and bankruptcy and
tors of handicraft factories must pay some money in
ease of use of energy power. This ranking shows the
addition to production costs including tax and costs
suitability of each country to carry out economic and
related to bio-environmental consultations.
trade activities. Thus, in terms ease of use and suitabil-
ity for carrying out economic activities, Iran is on the 6-3-1 Taxation policies:by proving taxation facilities,
far end among 189 countries. governments encourage industries to development
and facilitation (Osborn, 2005, 354). A review of the
3-3-1 Commercial policies: based on the report of the
websites of Iran Governor General Office and invest-
World Bank (2014), Iran has achieved the rank of 153
ment motivating factors shows that handicraft and also
in terms of trade facilitation in the world, and seven
a small portion of exportsare subject to tax exemption.
documents are required to export commodities
Therefore, lack of development of such industries de-
through the border in Iran, and ten documents are
spite motivating actions indicates that the lack of
need to import commodities. The required time for
growth in handicrafts roots from other latent reasons.
exporting and importing is 25 and 37 days, respective-
ly. Exports cost in Iran borders for each container is 7-3-1- Investment incentives: investment incentives
1.470 dollars and for imports is 2.100 dollars. The intended for investors in this sector are presented in
above shows that while Iran has an inferior situation the information portal Article 44 of the constitution as
than other 153 countries (most as the competitors for follows: a) The tax exemption of handicraft workshops,
Iran) in the world in terms of handicraft exports, regu- b) payment of 5% of export incentives, c) social securi-
lations and conditions in Iran for exports are better ty law of carpentry, carpet weaving and licensed hand-
than those of imports. Nowadays, in Iran, by injecting icraft workers d) deductible insurance contributions of
financial resources higher than absorption capacity, employers and workers in small workshops for all dis-
inflationary tendencies have been intensified. In this ciplines of handicraft trade up to 5 persons, e) requir-
context, the faced bythe surplus exchange rate, the ing all executive agencies to mobilize appropriate loca-
government uses exchange to control inflation to open tions and purchase items of handicrafts;f) the use of
the doors to imports of foreign goods (Mehrjerdi, Re- handicraft products in non-cash prizes card of banks, g)
zaei, Arabion, 2010). Imports of goods of competitors prohibit the sale of non-Iranian handicraft works within
supplied sometimes with a lower cost and higher quali- the historical and cultural sites of the country, h) inclu-
ty than domestic products make the area tighter for sion of tariffs on water, electricity, gas and fuel subsi-
domestic craft makers. dies of the industry sector in the subsides targeting law
into workplace handicrafts, i) granting credit facilities
4-3-1- Financing, grants and facilities: a cursory look at
(associated auxiliaries in the annual budget law, small
handicraft websites indicates that providing active
economic business, boxes of MehrImam Reza (AS), the
handicraft workshops in Iran provinces with grants and
law ofdomestic jobs organization).
low interest loans has been main concern of the gov-
ernment and many good opportunities could be found 4-1 Technological Factors
in this area. However, artists and craftsmen’s mistrust
1-4-1 Use of technology: use of technology in the area
to the sale of the manufacturing products is the most
of handicrafts to reduce unemployment, hard physical
critical problem (Mojib, 1997:85), and the above men-
activity, increased production, reduction in production
tioned motivations have not played an effective role in
costs, the reduction in the finished price of manufac-
the development of these industries.
tured product and also formulation of some standards
5-3-1 Environmental regulations: since the majority of in some parts of handicraft productions are the highest
the handicraft products are adaptable to the environ- priorities in this context (Yavari, 2002, 22-23). In addi-
ment, bio-environmentalregulations not only do not tion, to identify different needs of customers such as
create problems for these industries, but also provides aesthetical, cultural, economic, ergonomic ones and
them with a special competitive advantage. Whereas, instant recognition of opportunities and ability to fulfill
factory competitors must await the stringent national these ever-changing needs, utilization of relevant
and international regulations, because experts believe knowledge and information is of critical significance.
that the most effective way to control the pollutants is
Eliasi, Rokni, Taiebi (2012), quoting from Shin, state
imposing tariffs on them.If officials seriously imple-
that access to the relevant information plays a critical
©JK Welfare & Pharmascope Foundation | International Journal of Review in Life Sciences 97
 Shojanoori et al., Int. J. Rev. Life. Sci., 5(10), 2015, 91-102

role in the identification of opportunities, and those mation of executive expert committees consisting of
with more access to information for grasping better experts from various organizations in the form of hu-
opportunities have more chance to accomplish their man resources committees (with special educational
objectives. Bakhtiari (2014) considers the factors of his objective), equipment and means committee, the
success as having a strong public relation and paying Committee on Scientific and Technical Infor-
attention to customers’ demand, visit of foreign work- mation,committee of raw materials and motifs (for
shops in different travels, a constant review of market procurement of high quality raw material and original
daily products, materials and even kiln and finally per- designs and producing designs ID), the organizing
forming repeated tests to manufacture the high quality committee of production, marketing and sales of-
products. fers.He believes that artists and craftsmen’s mistrust
with the shopping of productions is one of the most
2-4-1 Investment on research & development: prod-
obvious problems and the solution is to guarantee pur-
uct development is one of the most critical factors that
chasing of these products and providing financial facili-
must be taken into account given the marketing re-
ties through budgets auxiliaries. A review of construc-
search and targeted purchasers; otherwise the market
tion methods and handicraft production workshops
development from local market to other markets can-
indicate that the construction stages and the tools
not be accomplished. UNIDO & UNESCO (2005:20) re-
used in some of these industries are completely primi-
instate that to facilitate investment for development of
tive and handmade and it is of critical importance to
creative industries and an evaluation of their role in
introduce the modern technology into this area in or-
social and economic development in a country or re-
der to enhance the speed and quality of production
gion, the identification of a set of creative indicators
and to create change and innovation in some past pro-
that have potential to develop at a regional and na-
duction forms and formats that are no longer worka-
tional level is of critical importance in order to become
ble. Also, it is necessary to preserve high status of
informed of their potentials and thus to ensue social
handicrafts and prevent use of pollutants in production
and economic growth. This information can be ob-
of these products.
tained through the Creative Industries Atlas.A brief
look at the portal of Cultural Heritage & Handicraft 5-4-1 Information and communication technology
Organization in different Iran provinces shows that the (ICT): ICT has influenced all dimensions of our life. ICT
Creative Industries Atlas has now at the top of the includes all forms of computer system, remote com-
agenda of many of these organizations and this is so munications and network. Use of this technology en-
promising for the future of handicraft in the country. hances man’s intellectual and social level in developing
countries and underdeveloped area. In the other
3-4-1 Financing of research & study
words, to enhance human potential and empower-
This sector whose one of subcategories is handicraft ment, reduction of poverty, strengthening of commu-
plays a significant role in Cultural Heritage Organiza- nications, content and local knowledge development
tion, and it is of particular importance in providing data and also to ensure an equal access to information, ICT
banks and launching museums for designers and inves- is utilized. Furthermore, this technology facilitates
tors. According to Davari&Nourimah (2001) the dyna- remote training and learning whenever or wherev-
mism of designing and designers in each country is of er(Alias, 2013: 11-12). It is clear that the presence of
utmost significance for achieving a sustainable devel- bandwidth with a high speed to enable rural people to
opment in the area of handicraft industry, and the mu- grasp opportunities is so determining, and in case help
seums are also critical determinants in this context. rural households and families to play proper roles in
Use of other countries’ experiences can be helpful as the strengthening of the national economy, an appro-
well. For example, in French, Casimir Technology Cen- priate set of service should be provided at site (OECD,
ter in 1958 provided small scale businesses (primarily 2010: 44-47).
rural) in the region with free consultation and relevant
6-4-1 Technology of consumer purchase mechanisms:
helpful information, associated these businesses with
Abadinaghsh (2014) regards the most effective factor
service providers and laboratories and also supported
in handicrafts development as the creation of multiple
special projects. One of the strengths of this center is
spaces and markets for sale of handicraft and also
the presence of technology development counselors.
providing people with shopping facilities and encourag-
Each counselor will be engaged in a special business for
ing people to always purchase domestic commodities
a five or six month period in order to link technical and
(Abdinaghsh, 2014). On the other hand, nowadays, a
practical skills directly (OECD, 2010: 63).
variety of modern techniques have been invented for
4-4-1 replacement of technology/solutions:Mojib instant and simpler purchase of required commodities
(1997:82-85) states that the qualitative and quantita- such as online purchase. This trend has been used in
tive development of handicrafts is possible by the ap- Iran for a short period of time in the area of handicraft
plication technology. Also, he highlights the important products by intermediary purchasers, which of course
role of state organizations and general governor offices given the lack of standards and brands in handicraft
in the handicraft development and suggests the for- industry, correct diagnosis of a high quality and original
©JK Welfare & Pharmascope Foundation | International Journal of Review in Life Sciences 98
 Shojanoori et al., Int. J. Rev. Life. Sci., 5(10), 2015, 91-102

product through online websites is challenging and the development of clusters (Article194- b), continuous
almost impossible. The enhancement of packaging technical and vocational training with the aim of em-
quality and handicraft products transfer for supporting powering villagers to provide and use new services and
handicraft consumers can be regarded as another im- participation in industrial activities and improve the
portant contribution. quality of production (Article 194- e), and organizing
and establishing the activities of small and medium
7-4-1 Intellectual property: report of UN on the devel-
entrepreneurship and employment in rural areas
opment of entrepreneurships in the creative industries
through the provision of credit and financial incentives
sector regards intellectual property as one of the key
(Article 194- g)
required interventions, because without such protec-
tion, creative entrepreneurship will be a pawn in the 6-1 Institutional factors
hands of the pirates of artistic and literal works, traffic,
The growth of generative entrepreneurship using in-
forgery and fraud and other forms of illegal acts. This
stitutions
issue should include the trade marks system, collective
marks/certification, design rights, geographical indica- Bamol, Litan&Sheram (2009) have stated that one of
tions, patents registered, traditional knowledge and the economic growth factors that can bring about
copyright (exclusive), and publication and publishing higher production is creating encouragement to gener-
copyright (ILO, 2011: 9). ative entrepreneurship. To achieve this goal, the com-
munity should pay a portion of its highest bonuses to
Den Lee & Shiang Li (2010) also suggest that copyright
the most successful entrepreneurs. One of these bo-
and patent must be licensed and inventions should be
nuses is eradication of barriers. Also, through legisla-
encouraged to innovate and develop products. Inade-
tion and law making, institutions should prevent non-
quate measures in the field of intellectual property
generative entrepreneurship. For example, institutions
rights reduce potential to develop and produce high
can restrict illegal actions to earn the points from
quality industrial products. In order to convert creativi-
competitors, prevent corruption in launching corpora-
ty intoa long-term flow, widespread public awareness
tions, and prevent covert negotiations with great insti-
of the importance of intellectual property rights should
tutions equipped with government financial support,
be guaranteed (UNIDO& UNESCO, 2005:20).
etc. so take more effective action.
Unfortunately, this problem can significantly hurtthe
2- INTERNAL ENVIRONMENT
creativity in the area of handicrafts. Form one hand,
creative artist is suspicious of instant copying of its Industrial workshops are managed usually in the form
work in the market as soon as it will be entered into of households or small size enterprises, and no ministry
market, and has not sufficient time, money and desire administers their affairs. Technical constancy and su-
to develop and design a new product, and on the other perb reliance upon skilled physical power are two of
hand lower level artists instead of spending time and the most significant characteristic of rural handicraft
capital on innovation and design of a new work, they industries. However, instruments and production pro-
prefer to copy the product that has a good sale in the cedures do not remain constant in long term and main-
market; and unfortunately, in most cases this copying ly follow technical and industrial evolutions, which not
and forgery is done by a low quality and it hurts even only this can further develop their field, can also sub-
selling of original products and discourage preliminary sist and sustain their business trend (Yavari, 2011).
designer of work.Of course, workshops with a powerful Because most of handicrafts workshops often are ac-
team of designing and innovation immediately present tive in rural areas, obstacles and limitations of entre-
a new higher quality original product in order to pre- preneurship in rural areas can include 1) individual and
serve still their customers (Bakhtiari, 2014). family barriers 1 (low level of literacy, rigid attitudes,
low income), 2) socio-cultural factors (low power and
5-1 legal factors affecting the handicraft development
understanding of innovation), 3) economy (lack of de-
in five-year development plan of the Islamic Republic
mand, lack of access to sufficient resources) and 4)
of Iran (2012) include: designing, manufacturing, dis-
management (structure, lack of support for new inno-
tribution, publishing and export of cultural goods and
vative and dynamic ideas) is (Eftekhari & SojasiGhai-
services, arts, media, handicraft and cultural heritage
dari, 2010: 51- 54). Allison suggests the most important
(Article 13-c ), financial support of launching special-
strategies to strengthen local entrepreneurship include
ized museums or public institutions, non-governmental
capacity building by creating infrastructures in the are-
organizations and the private sector (Article 13 (c)),
as of entrepreneurship, enabling the creation of self-
financial support and encourage of networks, clusters
esteem, accelerate growth through mobilization.By
and production chains (Article 80-a), the expansion of
enumerating ten main elements of farmer subculture,
domestic business and income generation projects
Rogers regards them as main obstacles to entrepre-
private and cooperative, especially in regions with un-
neurship. These elements include lack of a mutual trust
employment rates above the national average unem-
in personal relations, lack of innovation, fatalism (a
ployment rate (Article 80- c), (Article 80-b), supporting
degree of understanding of its inability to control the
the development of rural industriesby giving priority to
future), low expectations and aspirations, neglecting of
©JK Welfare & Pharmascope Foundation | International Journal of Review in Life Sciences 99
 Shojanoori et al., Int. J. Rev. Life. Sci., 5(10), 2015, 91-102

future benefits in favor of immediate benefits, attach- objective thinking or low cognitive complexity and
ing less significance to time, family orientation, family those with abstract thinking and relatively high cogni-
goals dependence, reliance upon the capability of tive complexity. The first category requires framework,
partners and lack of empathy. Notably, in case trans- order, constancy and adaptation to environment and
formation plans for rural areas are not based on the they have a closed, absolute and pattern-based think-
identification of farmers’ values, viewpoints, opinions ing (Hellander, 2001). In the area of handicraft, we
and motivations would lead to failure. The executors of mainly fact people with little education and training
rural development plans should consider demograph- and this play a highly effective role in formulating
ical and cultural characteristics of people targeted in structure and policy making.
the plans (Azkia, 2008:118-133). In addition, William
DISCUSSION AND CONCLUSION
mentions several factors for further rehabilitation of
farmers, which some of include: 1) positive self- Despite the huge potential of Iran’s handicraft sector,
evaluation 2) empowerment tendency, 3) self- the state of the industry is not in an optimal position.
confidence, 4) know individual potentials, 5) motiva- The different incentives in the form of provision oflow
tion and enthusiasm 6) understanding personal emo- interest facilities, tax exemptions and other govern-
tions and personal power and control to guide them mental supporting activities introduced in this sector
(FazeliBaigi &Yavari: 2009: 48).Smith believes that, by have not effectively led to a further development. This
creating social networks, financial and technical institu- is because most of the handicraft industriesbelong to
tions (entrepreneurship supporting organizations) and rural industries, and remoteness and isolation and low
the economic activity of clusters, rural entrepreneur- population residing in rural areas are among the rea-
ship can be developed more and more. Robert Botman sons that make provision of infrastructure and public
also shows that how social capital is a prerequisite for services in this sector not affordable. Thus, the possi-
access of small communities to economic dynamic life. bledevelopment will not be provided as soon as possi-
According to him, social capital has three resources ble and requires more time and investment. Be-
including a)social resources such as history and social sides,difficulties of handicraft producers in a cycle of
culture, b) physical (natural) resources such as human deprivation and isolation, and lack of access to re-
constructions and natural environment (forest, soil, sources, facilities and necessary training have hurt the
renewable resources, etc.), c) economic resources such quality and dynamism of such products and have di-
as capital instrument in the construction of environ- minished the attraction of private sector investment in
ment and financial capitals (Moti’eiLngeroudi et al, this industry.Therefore, to enable handicraft industry
2012). to achieve an effective economic scale, the participa-
tion of all stakeholders including government, private
In this part, we take a cursory look at manpower or the
institutions, government and non-profit institutions as
people involved in handicraft industry and also the
well as active participation of universities in the devel-
type of indoor technology of this industry.
opment of rural industries, by giving priority to the
1-2Technological subcategories development of clusters, as well as the establishment
of centers offering handicraft business servicesshould
According to UNIDO & UNESCO (2005:30) handicrafts
be at the top agenda of planners and policymakers,
are divided into four main groups 1) fine 2) artistic 3)
due to the fact that these centers have provided access
applied & 4) mass production. All those who aim to
to some advantages such as joint use of design service,
enter handicraft industry, they first must identify their
marketing, finance, research&development and the
own desired category. This is because the type of
entrance of technology (to a reasonable extent) and to
commodity, technology used, price, consumers, market
overcome the problems in this area and provide im-
output, distribution channel and manpower of each of
proved quality and production relevance to the needs
the above categories are different, and these factors
of the consumer.On the other hand, acculturation and
can significantly affect production policy making.
widespread publicity in the popular media, and holding
2-2 Categorization of employees in the area of handi- ofinvestment opportunities exhibitionsin the field of
craft handicrafts is also considered one of the important
factors for the development of this industry.Because
Two main categories should be taken into account in
this not only makes investors more informed of the
the categorization of personnel in the design of organi-
potentials of this industry, but also raise awareness of
zation include a) the level of skill and expertise that is
purchasers on the advantages of this type of indus-
associated with educational and training needs of a
try.Along with all these measures, the government's
certain job b) social-mental characteristics as the most
efforts to develop the tourism industry as one of the
profitable pattern for design of cognitive complexity
best platforms to create jobs and strengthen the cul-
pattern organization. Whatever manpower is more
ture, and the government's determination to improve
experienced in facing various environments and differ-
the business climate in the country is of the utmost
ent persons, he/she takes advantage of a higher cogni-
significance and can effectively stimulate entrepre-
tive complexity. In terms of mental complexity, people
neurship and exit the industry from this downturn.
are categorized into two groups including those with
©JK Welfare & Pharmascope Foundation | International Journal of Review in Life Sciences 100
 Shojanoori et al., Int. J. Rev. Life. Sci., 5(10), 2015, 91-102

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