A Profitable and New Approaches of Social Innovation in The Handicraft Sector. Case Study: Social Innovation Through the ITC Component on The Financial Mechanism of The State

Abstract

Economic growth is driven by a number of factors including labour productivity, the ICT industry, natural resource ownership and, last but not least, efficient, effective and productive public administration through the support it provides to private sector organisations and unorganised small industries specially in handicraft sector. As governments face new challenges designed to ensure fiscal consolidation by raising tax revenues or stimulating growth, competitiveness and employment, the increase of efficiency is driven by better governance, faster service delivery and greater stakeholder engagement in the handicraft sector as traditionaional and sustainable industries. Social innovation is more difficult to define and identify in the handicraft sector, as efforts to understand and promote it are hampered by a lack of analysis and quantitative evidence. However, the handicraft sector needs to innovate to be more efficient and to meet the growing demand of citizens specially rural and nature loving citizen of country as well as global level. Objectives: The aim of this article is to present a framework on how to innovate through the IT component in the handicraft sector, with a focus on financial mechanisms for tax collection goods and service tax in India. Approach: This article is based on a bibliographical research of literature in the field of social innovation, oriented towards the handicraft sector even more research has been done in public sector but we want to study in handicraft sector. Results: The importance of social innovation in the handicraft sector should also be understood as a way to combat actions that generate increase costs or taxes and get motivation from public sector. In the medium and long term, social innovation is useful for facing societal challenges and for better global integration of countries that are "modest innovator".