Improving Sustainability and Encouraging Innovation in Traditional Craft Sectors:the Case of Sri Lankan Handloom Industry

Purpose – The purpose of this study is to assess sustainability across the handloom industry in Sri Lanka and identify opportunities for sustainable innovations supporting new markets, development of SMEs and growth in the Sri Lankan craft sector Design/Methodology/Approach – Using a multiple case studies methodology 10 case studies and 37 semi-structured interviews were analysed in conjunction with the triple-layered business model canvas. Findings- The study reveals the handloom industry to be fundamentally sustainable but with structural barriers hindering innovation and growth. The environmentally conscious production process and social inclusion within weaving communities are the key driving forces of sustainability in the sector but the structure of the industry and lack of access to markets and information act as barriers to innovation and growth. The incorporation of design interventions, closed-loop manufacturing strategies and the encouragement of community-based entrepreneurship would support sustainability orientated business innovation in the handloom industry. Originality/Value - The rapidly increasing market share for high-quality, hand-made goods indicates the potential of the creative industries to accelerate socio-economic growth. Handloom textiles is attracting growing interest in fashion markets, due to increasing concern about exploitation in production encouraging interest in the economic benefits of fairly traded, high quality materials, but also the potential contribution of handloom to sustainability in the fashion industry. The findings of this study will support the handloom industry and policy makers in developing support for sustainable innovation in the handloom industry

Community-based family enterprise and sustainable development in rural Sri Lanka

This paper proposes a novel theoretical model for the community-based enterprise, which could assist in achieving UN sustainable development goals within craft communities in developing nations. This model focuses on building enterprise skills in vulnerable communities, sustaining traditional crafts and strengthening community capacity for self-determination. This article distills qualitative data from case studies, participatory action research workshops and field observations within traditional handloom craft communities in Sri Lanka. It explores the prevailing status of community-based entrepreneurship practices and argues that under current practices, entrepreneurial culture is not deeply embedded in community life, leading young people to move away from the traditional way of life and damaging the cohesion of traditional communities. This study establishes the need to sustain levels of social capital, support family networks, and encourage innovation to develop enterprise in craft communities. We recommend various strategies for overcoming structural and socio-cultural barriers to enterprise and to establish community-based sustainable development