Handicrafts field in the time of COVID-19

As everything has been affected in the worldwide by the covid-19 outbreak and whole economical activities are shifting to e-commerce this brings a great importance to our F2F-Trust project. Therefore, we must put more and more energy for speeding up our products to be exploited by the sector which is in an absolute need for our solution.

Everything has been affected in the world by the covid-19 outbreak, handcraft being on top of existing negativity major affected sectors, along with tourism, events or recreation industry. People are focused on their essential and vital needs and have a tendency of postponing their clothing, accessory tourism needs/shopping.

See bellow how the craft sector was affected particularly in partner countries (in alphabetical order) and what measures were adopted in supporting this domain:

Lithuania

Both national heritage creators and producers have been severely affected by quarantine, which has restricted both training and sales, as well as production.

In Lithuania quarantine came at a time when creators and producers of national heritage have the opportunity to earn the most to survive all year. Most of the various celebrations and similar events are organized in the spring and summer, and it is known that all this will not happen for a few more months. Furthermore, in the future both fairs and celebrations will be more modest. The turnover of producers who were able to trade in the markets fell by about 30 percent.

Unfortunately, the most difficult situation is currently experienced by non-food producers. For example, people usually buy handmade gifts and crafts, as well as candies and apple cheese made according to national heritage traditions for various celebrations and special occasions, and during the quarantine there were not even any personal family celebrations left.

Only those working according to individual activity certificates can expect modest support from the state, more specifically from The Ministry of Agriculture of the Republic of Lithuania. However, for instance, farmers with additional individual activity certificates are no longer eligible for the support. In addition, most state support for national heritage is targeted at participation in events or certification for new members. For those who want to trade handicrafts or other goods, there is one clear solution left according to the Ministry of Health: trading can only continue if it takes place online.

Poland

March 2020 was the month in which Polish business suffered particularly from the government’s restrictions imposed in connection with the SARS-CoV-2 pandemic, causing COVID-19 disease. SMEs have suffered most. Citing data from the Central Register and Information on Business Activity, the Ministry of Development reports that in March, a total of almost 58,000 applications for suspension and liquidation of activities were submitted. Suspension is currently the most frequently chosen rescue option. According to preliminary research, the following sectors have suffered the most: trade and services, hairdressing, optics, catering and hotel industry, food sector, construction, photography, automotive, fitness, manufacturing, tailoring, metal and furniture.

Companies affected by the difficult situation related to the COVID-19 pandemic may take advantage of special solutions, within the framework of the governmental “Anti-Crisis Shield”. The programme concerns financial support for micro, small and medium-sized enterprises affected by the pandemic. The Programme assumes that the main instrument of financial support for enterprises will be financial subsidies, the majority of which (up to 75% of the funding) will be non-refundable once the conditions set out in the Programme are met. Among the most helpful proposals of the Anti-Crisis Shield, craftsmen and entrepreneurs mentioned: exemption from the payment of contributions to the Social Insurance Institution (ZUS) for 3 months; subsidies to employees’ salaries in the amount of 40% of the average salary in case of reduction of working time; subsidies to employees’ salaries for the time of economic downtime in the amount of 50% of the minimum salary; reduction by 90% of rents of tenants of premises and stalls in shopping malls, as long as these facilities are prohibited from functioning normally.

Romania

Together with tourism, events and recreation business, the handicraft sector is one of the most affected economic domains by the restrictive measures established at National level due to COVID-19 pandemic, and the short term future doesn’t sound good also.

The immediate measures took by the Government in the support of the craft sector included the technical unemployment for the employees – in the case of SME’s or a monthly benefit in the case independent economic activities. Both kinds of benefits are supported by the state in quantum of 75% of the average salary during state of emergency.

Also, the SME’s INVEST credit program was launched at the beginning of May. The program allows to SME’s significantly affected by COVID-19 crisis to ensure the cash for carrying out the current activity or for investments, by accessing one or more credits for making investments and / or one or more credits / credit lines for working capital. The state will guarantee up to 90% of the credit. The financing costs (pay interest, guarantee fee or other granting costs) are 100% subsidized from the state budget, until 31.12.2020, with the possibility of extension. The maximum value of loans can be up to 10,000,000 lei for investments and up to 5,000,000 lei for working capital!

Even a big part of the craft persons switched to online selling, unfortunately, most likely the handicraft sector will be affected till the end of year as the customers will continue their consumer behaviour oriented on food and necessity goods in the context in which the health specialists warns us on the danger of a new epidemic during the fall.

Slovakia

Lockdown caused by COVID is being felt across all crafts in Slovakia during past 2 months. Their orders have been cancelled. Since all markets have been shut, they can neither buy raw material, nor sell finished goods. They don’t even have a safety net like provident fund. A lack of clarity and unpredictability characterise the situation in the craft sector facing the impact of the COVID-19 virus in Slovakia. The virus poses a number of risks – not all of them immediate. How big the challenge the Slovak economy faces in the end depends on the development in neighbouring countries, as well as the generosity of the state in providing assistance and incentives when re-opening the economy.  In the countries surveyed, Slovakia is the one where the government’s assistance has so far been the least generous, the most narrow in the use of instruments, and so far, the slowest. Business and industry associations and employer organisations assess the measures taken in Slovakia as helpful, but too slowly adopted, too complicated and administratively demanding, pointing out that these are decisive for the future competitiveness of Slovakia.

Turkey

Market is already down, together with the fact that many shops and shopping malls closed and events cancelled or postponed for the autumn or next year.

State is trying to support the small scale producers by subventions, however it will not be sufficient for survival in medium and long term.

The government took several decisions to reduce the effects of the coronavirus (Covid-19) outbreak. Some of them directly or indirectly affect women who do handicrafts from home and briefly as follows.

• Cash assistance to low income families,
• Tax payments of taxpayers who have income tax debt on commercial, agricultural and professional earnings were postponed
• Low interest loans were provided by public banks and loan payments were delayed
• Tradesmen Support Package was provided within the scope of Economic Stability Shield for Tradesmen and Craftsmen.