The handicraft industries are of great significance and economic value to many poor households but are still being neglected without enough support from the government and non-government institutions. The purpose of this research is to describe the experiences and insight of the crafter's business activities in the Midlands, as well as the critical success factors towards innovation and development of the industry. This study argues that the handicraft entrepreneur needs to be innovative, explore and try new ideas towards the development and sustainability of the industry. The research objective is to identify the basic factors that affect the innovation and developmental needs of entrepreneurs operating handicraft enterprises. Quantitative methods of data collection and analysis were used for conducting the study. The key finding indicates an urgent need for intervention for handicraft entrepreneurs towards innovation and sustainable development of the industry. Hence, handicraft producers need more support than ever if they are to continue to sustain their livelihood and remain more worthwhile, with the fluctuations in consumer buying trends and tastes, combined with declining tourist visits to handicraft markets.
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