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Master Class Creative Economy 2010. EU Report, entrepreneurial dimension SME's

Master Class Creative Economy 2010. EU Report, entrepreneurial dimension SME's

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  • From subsidized institution to entrepreneurshipEverything moved from governmental subsidized orientation to entrepreneurship
  • Welcome, proud to deliver the introduction presentationTwo topics: creative economy , position of the Dutch

110201 hku entrepreneurial dimensions creative economy eacea 110201 hku entrepreneurial dimensions creative economy eacea Presentation Transcript

  • Rene Kooyman
    1 February 2011
    The entrepreneurial dimensionof cultural and creative industriesespecially SMEs
  • The cultural and creative industries
    ‘Cultural industries’ are those industries
    producing and distributing goods or services
    which at the time they are developed
    are considered as a specific attribute, use or purpose,
    which embody or convey cultural expressions,
    irrespective of the commercial value they may have.
    They include: film, DVD and video, television and radio, video games, new media, music, books and press, performing arts, visual arts.
    ‘Creative industries’ are those industries
    which use culture as an input
    but whose outputs are mainly functional.
    They include: architecture, advertising as well as design and fashion.’
  • UNCTAD Creative Economy report 2008
  • The kea model
  • based on ‘analysis of sectors rather than creative activities based on individual talent’
    Creative service providers:Design, architecture, new
    media, advertising
    Creative content producers:Tv and Radio, Fashion, Games,
    Music, Film, Books
    Creative experience providers/creative originals producers: visual artists, designer-makers, performers, opera, ballet, galleries, museums; music, games
    NESTA refined model
  • Different Dimensions
    Cultural and creative industries :
    goods or services
    which embody or convey cultural expressions,
    irrespective of the commercial value they may have.
    • Cultural value:
    • Creative and cultural capital
    • Fostering territorial identity and cohesion
    • Participate in the expression of cultural diversity
    • Social dimension:
    Social identity, integration and distinction
    Reinforcing self-confidence of individuals and communities
    • Entrepreneurial dimension: the entrepreneur !!!
  • The entrepreneurial dimension
    The occupational perspective
    • entrepreneurs own and manage one's own business enterprise
    • create value: shifts economic resources
    • out of an area of lower and
    • into an area of higher productivity and greater yield
    assuming entrepreneurial risk
    engagement in innovative practices
    developing new and innovative products; forms of organization; new markets; new production methods; new sources of supplies and materials
  • Determinants of entrepreneurship
    • Regulatory framework: start-up costs, labor costs, etc.
    • R&D and technology: new inventions, new products or processes
    • Entrepreneurial capabilities: human and social capital
    • Culture: entrepreneur‘s behaviour, attitudes, overall effectiveness
    • Capital and Access to Finance: from early seed funds to stock markets
    • Market conditions: public involvement in markets, competition in the markets, access to foreign markets, procurement regulation, standardisation
    • SME’s ???
    OECD / EUROSTAT 2008
  • The new sme definition
    Three criteria:
    • Staff headcount
    • Annual turnover
    Or:
    • Balance sheet turnover
    • Nr of enterprises in each category ?
  • Distribution of Enterprises among Industries per size class
    Source:
    Eurokleis 2009
  • Distribution of Enterprises among Industries per size class
    Eurokleis 2010
  • Staff headcount - turnover
    Creative industries:
  • Distribution of total assets
    Eurokleis 2009
  • Business categories
    • Artisan – Designer driven purely by aesthetic
    motivation
    • Solo – Individual designer focused on growth
    • Creative Partnership– Two creative people
    • Designer and Business Partner – One creative and one business partner
    • Designer and Licensing Partner – Designer under royalty contract
    • Designer and Manufacturer – Designer in contractual agreement with manufacturer
    • Partnership with Investor – Designer in partnership with a formal investor
    NESTA 2008
  • From the entrepreneur’s perspective
    From the SMEs perspective, three markets:
    • The ‘arts’ field: pure creative work
    • Arts related markets:
    teaching, arts administration, art management
    • Non-arts markets, in order to generate additional income
    Personal characteristics and differences:
    • Entrepreneurial success
    • Professional achievement
    • Art creation
    • Professional career
    personal motivation ?
  • Personalmotivation inenterpre- neurship
  • Specificities of ccisLabour market
    • Labour market of the CCIs is complex
    • Thrives on numerous small initiatives
    • Careerwise a high degree of uncertainty
    • Non-conventional forms of employment; part-time work, temporary contracts, self-employment , free-lancers
    • Multiple job-holdings; combined other sources of income
    • New type of employer; the ‘entrepreneurial individual’ or ‘entrepreneurial cultural worker’, clusters of entrepreneurs
    • No longer fits into previously typical patterns of full-time professions
    • Diversity in skills acquisition; higher professional training, vernacular backgrounds, craft industry, any other category
  • Differences product characteristics
    • Cultural goods have to be set apart; they
    express cultural uniqueness and diversity
    • Creative inputs and products are abundant
    • Hypercompetitive environment
    • Knowledge-based and labour-intensive input
    • Not ‘simply merchandise’, but express cultural uniqueness and identities
    • Experience goods; production and consumption ‘on the spot’
    • Product life-cycles are short
  • Cultural business modelling (CBM)
    Market for cultural goods both volatile + unpredictable
    Consumers are often not aware of their tastes; they
    discover through repeated experiences in a sequential process of largely unsystematic ‘learning by consuming’
    • Creative service providers – traditionally non subsidised
    • Creative content providers – mostly non subsidised
    • Creative experiences/original providers ‐ mostly subsidised
    Combined Business Modelling:
    • Product Market Combinations (PMC’s), real estate, merchandising
    • Sponsoring, matching funds, co-financing, fund-raising
    • Business angels (mecenat), governmental fascilities, subsidies
  • Cross countryRegulatory frameworks
    Source: Eurokleis 2009 Pan European Questionaire
  • EU country specifics
  • Entrepreneurial lifecycle framework
  • CCIs as key strategic factor
    • CCIs drivers of economical growth (UNCTAD)
    • Drivers of innovation:
    Creativity – Innovation - Design
    • Flexibility; direct producer/client interaction; meet the clients needs
    • CCIs stand at the core of cultural and industrial networks
    • CCIs and Technological change/digitisation two-way process
    • CCIs indispensable at Corporate Identity and Branding
    • Cultural and Creative Content as independent economical factor
  • Challenges
    • CCIs are different than other enterprises; differences in size and characteristics;
    general policies do not apply
    • CCIs are either very small (the bulk) or very big (the few)
    • The very small ones carry a load of administrative obligations; accounting, legal registration, etc
    • Financial funds are hard to find; banks/investors do not trust creatives (especially in times of crises)
    • Creative firms go through different stages; some of them want to grow; others do not
    • Entrepreneurial skills are lacking; career development is almost lacking recommendations ?
  • recommendations
    • The specific size and characteristics of
    the CCIs should be recognized
    • Make a distinction between the large
    companies and the very small ones
    • Exempt nano-enterprises from accounting obligations
    • Launch a pan-european Creative Investment Fund, create soft-loans , tax-incentives, business-angels
    • Create targeted support for the different stages of development (start-ups, growth)
    • Establish a Creative Economy Learning & Skills network and Career Development Support
    http://cci.hku.nl
  • Questions brusselsfeb 3
    Question 1:
    How to start long term collaboration between CCI’s
    and other sectors?
    And which factors are important to succeed that collaboration?
    Do we need to start with education programs for both sectors?
    Or are there other ways to start that collaboration?
     
    Question 2: You wrote the green paper to define the requirements of a truly stimulating creative environment for Europe's CCI's, but I couldn't find a clear list, or check-list, to ensure that the areas of research and development are in progress.
    How do you manage this development to ensure a growth in the requirements of this "truly stimulating creative environments for Europe's CCI's"?
  • Question 3: There are a lot of definitions about the
    CCI's. Some based on activities, some based on mission
    and some based on copyright requirements.
    What is your definition?
    And how do you ensure that everyone is working on the same CCI's when the definitions are so divers?
    Question 4: In my opinion it is always the best to teach people from a young age to use their values and skills in improving situations.
    I believe it would be most effective to teach art managers the values, possibilities and needs that the CCI's require. How do you see this and how could the EU invest in the area of education, with the idea that investing in young art managers will lead to solutions to the questions that are asked in the Green Paper.
    I couldn't find a clear list, or check-list, to ensure that the areas of research and development are in progress. How do you manage this development to ensure a growth of CCIs ?
     
  • Question 5:What can visual Artists pro-actively do to manage their role of significance on a 'global scale' in perspective of the CCIs and their spill-over effects?
     
    Question 6: Art and culture have a unique capacity to create green jobs... how so?
     
    Question 7: What effects does the reducing of the cultural budgets have on the creative industries and therefore on the fulfillment of the Green paper?
    Question 8: Have there been any interesting developments concerning the green paper topics lately?
  • Rene Kooyman
    1February 2011
    Creative Industries
    as key strategic sector
    The entrepreneurial dimensionof cultural and creative industriesespecially SMEs
    rkooyman@rkooyman.com