
The hardest part of starting up is starting out.
The artisanal ecosystem requires a makeover to reclaim the status of a lucrative business opportunity. To achieve the same, digital preparedness establishes itself as the qualifier for the artisans to gain discoverability for any assistance in the form of capital, market, fintech product, social protection, disruptive technologies and so on. To make the most out of the changing landscape in the field of digital finance and online marketplaces, the artisans need to be digitally ready.
Catalyst AIC, as a part of its research on artisan communities, constructed a Digital Readiness Index (DRI) of artisans across 7 states. The districts were sampled considering NITI Aayog Multidimensional Poverty Index Baseline Report 2021. Through data collected from 1287 artisans characterised by home-based business setup (75.28%) and representative of women(62.42%), it sets forth a tool to study how prepared the artisans are for technologies with great potential transforming other sectors and gradually seeping in the Indian handicraft industry, explicitly for raising the standard of living for the artisans.
What is the Digital Readiness Index (DRI)?
DRI is a tool which holistically captures the digital preparedness of the artisans at individual levels. The index is derived from 10 variables which are representative of enablers of artisan’s empowerment to access the huge market potential which has been restricted due to information asymmetry attributable to lack of digital readiness, further restraining the onboarding coupled with sustained use of digital platforms.
By tracking artisans across the same measures, the scores obtained for the DRI can be a crucial input towards creating products that can plug critical pain points faced by artisans, such as those in market access, supply chain, financial services among others.
At governance level, the index will help identify areas which need intervention in the form of policy driven by evidence.
Methodology Used for Constructing DRI:
Comprehending the Digital Readiness Index
The DRI is constructed as a total score from the individual scores achieved for each of the four Sub-indices. The DRI evaluates the first set of actions to be taken to strengthen the artisans capability in terms of market integration and access to financial services as any kind of future opportunities which cater to their welfare, would require artisans to be sound users of the internet and being well-trained in terms of using the digital applications.
What are the Sub-indices:
Selected variables from the survey instrument which attempts to capture digital readiness of the artisans has been used to calculate four sub-indices.
What do the Sub-indices represent:
i)Total score
Remark: All scores are out of 10
Rajasthan | |
Artisanal Capabilities to access services | 2 |
Access to Digital Assets | 5 |
Use of Digital Channels | 7 |
Payment Mode for Business | 2 |
Overall Score | 4.57 |
Tripura | |
Artisanal Capabilities to access services | 4 |
Access to Digital Assets | 9 |
Use of Digital Channels | 7 |
Payment Mode for Business | 2 |
Overall Score | 7.95 |
Bengal | |
Artisanal Capabilities to access services | 4 |
Access to Digital Assets | 5 |
Use of Digital Channels | 7 |
Payment Mode for Business | 1 |
Overall Score | 4.35 |
Odisha | |
Artisanal Capabilities to access services | 3 |
Access to Digital Assets | 2 |
Use of Digital Channels | 3 |
Payment Mode for Business | 2 |
Overall Score | 2.23 |
Assam | |
Artisanal Capabilities to access services | 2 |
Access to Digital Assets | 5 |
Use of Digital Channels | 7 |
Payment Mode for Business | 1 |
Overall Score | 4.4 |
Gujarat | |
Artisanal Capabilities to access services | 2 |
Access to Digital Assets | 5 |
Use of Digital Channels | 6 |
Payment Mode for Business | 2 |
Overall Score | 4.5 |
Tamil Nadu | |
Artisanal Capabilities to access services | 3 |
Access to Digital Assets | 2 |
Use of Digital Channels | 4 |
Payment Mode for Business | 2 |
Overall Score | 2.46 |
Sub-index I: Artisanal Capabilities to access services
(A higher score was allocated to artisans who had data points falling under preferable categories.)
1)Education level
Preferable: Formal Education including primary, and graduate.
2)Artisan card
Preferable: Artisan card holders
3)Registration of business
Preferable: Business Registrations including MSME (SSI, UDYOG AADHAR), Business Associations, SHG, NRLM/SRLM.
Bengal and Tripura scored the highest for the Artisanal capabilities sub-index.
Sub-index II: Access to Digital Assets
(A higher score was allocated to artisans who had data points falling under preferable categories.)
Preferable: More than Rs.500 per month
Preferable: More than 2 hours per day
Tripura scored the highest and Assam,Bengal,Gujarat and Rajasthan as average performers.
-The sub-index provides an insight into the digital ecosystem of the artisans. (Assumption: A higher usage of internet in terms of horse translates to better and adept users of internet and hence digital platforms).
– The general browsing habits of the artisans in the study shows that 44.4% of the artisans used most of the applications in English.
-71% of the artisans use “search bar” in their mobile phones.
-The artisans have been spending substantial amounts of time browsing the internet, which could be tapped as an opportunity towards utilising the digital platforms towards business related activities.
Sub-index III: Use of Digital Channels
(A higher score was allocated to artisans who had data points falling under preferable categories.)
1)Number of digital applications used
Preferable:A higher score for artisans using maximum options out of:
YouTube, WhatsApp, Instagram, Facebook, Payment Apps such as GooglePay, PayTM, PhonePe, e-commerce applications
2) Whatsapp communication
Preferable: A higher score for artisans using maximum options out of:
a)Friends & Family
b)Clients – Final Customers (B2C), Business related partners
c)To receive information about government schemes.
3) Facebook
Preferable: Access to Facebook marketplace for their products.
Assam, Bengal, Rajasthan, Tripura as best performers.
(A higher score was allocated to artisans who had data points falling under preferable categories.)
1)Number of digital applications used
Preferable: YouTube, WhatsApp, Instagram, Facebook, Payment Apps such as GooglePay, PayTM, PhonePe
e-commerce applications
2) Whatsapp communication
Preferable: Friends & Family, Clients – Final Customers (B2C), Business related partners, To receive information about government schemes.
3) Facebook
Preferable: Access to Facebook marketplace for their products.
4)Instagram
Preferable: a)Having instagram page for business
b)Frequently uploading pictures/videos of their products
c)Using instagram reels feature to showcase
d)Been able to sell products through instagram
5)E-commerce applications
Preferable: Have been able to create an account on an ecommerce platform.
Sub-Index IV: Payment Mode for Business
(A higher score was allocated to artisans who had data points falling under preferable categories.)
Mode of payment
Preferable: Digital Transactions happening via :
Gujarat, Rajasthan, Tamil Nadu and Odisha with highest scores
A gendered lens to Digital Readiness Index
Men artisans | Women artisans | |
1)Artisanal Capabilities | 4/10 | 2/10 |
2)Access to Digital Assets | 5/10 | 4/10 |
3)Use of Digital Channels | 0.4/10 | 0.4/10 |
4)Payment Mode for business | 1.4/10 | 1/10 |
-The research 1.0 had highlighted that more than half of the women artisans get access through shared ownership of mobile phones. The findings were taken forward to closely study the requirements of women-led businesses.
-62% of women artisans approach their spouse/close relatives for business related advice. 12% of women as against 19% of men artisans were comfortable with online KYCs.
-Women artisans face a disproportionately higher burden of household work and hence the time poverty faced by them has to be taken into account while making any kind of policy decisions.