Five Critical Success Factors
Needed To Create and Strengthen
Artisan Enterprises
In Central New Mexico
PRESENTED BY
THOMAS H. AAGESON
9/26/03
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The Importance of the Artisan Sector
Artisan enterprises create jobs and wealth
Asheville
Nambé
Barn Boys
Peru
New York International Gift Fair
Palace of the Governors Portal Artisan Program
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The Importance of the Artisan Sector
There is a national market for innovative,
handmade products.
Artisan sector development supports tourism
growth and rural and urban development.
Artisan enterprises are an important part of the
emerging Creative Economy.
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Five Critical Success Factors
Needed To Create and Strengthen
Artisan Enterprises In Central New Mexico
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Identify the Sector and its Competitive
Advantages
Initiate Broad-based Enterprise Education
Implement Intensive Enterprise Development
Create Market Links
Develop and support a strong enterprise
infrastructure
Identify the Sector and its
Competitive Advantages
Culture is New Mexico’s Competitive Advantage.
Strong Artisan Tradition in New Mexico
n Spanish: Wood, weaving and tin
n Native American: pottery, weaving, jewelry
n Jewelry industry in Albuquerque
n Emerging artist community in the region
Culturally rich with tradition and design
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Identify the Sector and its
Competitive Advantages
How many artisan enterprises are there in the
sector? 400 and Growing
What are they doing? Jewelry, Furniture,
Clothing, Pottery, Textiles, Food
What do artisan entrepreneurs say they need to
succeed?
Markets
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Identify the Sector and its
Competitive Advantages
What are the skills and capacities of
entrepreneurs?
Raw Materials: Accessibility is good
Transportation: Airport, UPS and FedEx easily
accessible
Goal: Identify and target sub-sectors with
strongest competitive advantage, e.g. jewelry,
potters, food, fashion, furniture
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Initiate Broad-based Enterprise Education
Create a strategy to offer market relevant
enterprise education seminars and courses:
§ Market Trends: Will the region be known as a
place where trends begin or come to die?
§ Market Structure
§ Wholesale markets
§ Majors versus independents
§ Competition: China, India versus made in the
USA
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Initiate Broad-based Enterprise
Education
Packaging
§ Marketing: Materials and strategies
§ Pricing and Costing
§ Support development of related
educational facilities, e.g. Penland, IAIA,
Trade Schools
Goal: Reach hundreds of entrepreneurs
every year
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Implement Intensive Enterprise
Development
Select 10-15 artisan enterprises annually
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Develop transparent criteria
Bring in monthly consulting
High-level innovation in product development is
essential and non-negotiable
Provide market-driven product development
Pottery Barn and Target each outsource design
Implement Intensive Enterprise
Development
Facilitate market links: NY, ABQ, etc.
§ Develop and measure objectives from a
business plan
§ Pay for services on fee basis or through
royalties
§ Technical resources, e.g. kilns, dyes, lathes, raw
material handling
Goal: Intense concentration on a small number of
promising enterprises to be highly successful in
the market
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Create Market Links
Commercial
§ New York International Gift Fair, Atlanta
§ High Point, NC
§ NY Jewelry Trade Shows
§ Boutique shows - Clothing
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Create Market Links
Tourism Markets
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Handmade in America
Festivals
Tamarack, WV
Artisan Center, Berea, KY
Create Market Links
Albuquerque Market
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Juried
Two days for wholesale; Two days for retail
Bring in buyers
Create a profitable trade show
Invite all of NM, even AZ and TX
Booth fees, entrance tickets, program ads.
Create Market Links
Albuquerque Market
Example: “Kentucky Crafted the Market”
Artisan products, food, publishing
200 booths – Critical mass is essential to
success
Example: American Craft Council Shows, Rosen
Group, Maison et Objet
Flea Markets: Tesuque Flea Market
Artisan Alley: Canyon Road, Paris
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Create Market Links
Culturally-based Markets
n Indian Market
n Spanish Market
n Navajo Rug Market
n Museums as catalysts
n Mystic Maritime Museum
n Creative Enterprise Initiative
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Create Market Links
International Markets
n Export through the Department of Commerce
Ambiente and Tendence in Frankfurt,
Germany, South Africa
n Develop showroom, website and clearing
house to support the marketing efforts of the
entrepreneurs
Goal: Create Market links between the market and
the enterprise
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Create a Supportive Artisan Enterprise
Infrastructure
Credit:
n ACCION, New Mexico Community Loan Fund
n Familiarize banks with the workings of artisan
enterprises
n Identify sources of loans and guarantees,
SBDC, SBA, etc.
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Create a Supportive Artisan Enterprise
Infrastructure
Technical Resources
n Solve technical production issues
n Solve regulatory and tax issues
n Marketing expertise
n Scale-up production
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Create a Supportive Artisan Enterprise
Infrastructure
Facilitate Market Links
n Website
n Showroom
n Make trade show booth buys
n Organize trade shows
Reward innovation and entrepreneurship
Goal: Create, support and exercise oversight on
the artisan enterprise infrastructure
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Market-driven
Design-led
Become a Center of Innovative Product
Development
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Business Development is
Long-term Business
Like All Business Development
Efforts, Artisan Enterprise
Development is Long-Term
Work.
A Five-year Timeline is Typical
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Summary
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Identify the Sector and its Competitive
Advantage
Initiate Board-based Education
Implement Intensive Enterprise Development
Create Market Links
Sustain an Effective Artisan Enterprise
Infrastructure
Goals
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Create community wealth
Create jobs
Foster the development of the Creative
Economy in New Mexico
Thomas H. Aageson
Executive Director
Museum of New Mexico Foundation
505 982-6366 ext. 110
tom@museumfoundation.org
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