The entrepreneurial dimension
of cultural and creative industries
especially SMEs
Rene Kooyman
15 January 2010
Specific
Ch...
It’s me !
• Electrician; high/low voltage (HTS Oudenoord)
• Utrecht Conservatory of Music (HKU)
• Master (Drs) Social Scie...
Dimensions
Cultural and creative industries :
• goods or services
• which embody or convey cultural expressions,
• irrespe...
The cultural and creative industries
• ‘Cultural industries’ are those industries
• producing and distributing goods or se...
UNCTAD Creative Economy
report 2008
Contribution Cultural/Creative sector
• UNCTAD: Creative Economy Report 2010
• EU: See EDCCI Page 102
The new SME definition
Three criteria:
• Staff headcount
• Annual turnover
or:
• Balance sheet
turnover
• ????
Size of Enterprises
By sector across CCIs
eurokleis 2009
EDCCI: Page 64
CCIs : EU
Top
Regions
LQ is an indicator of CCI
employment relative to
the total employment of
the region, where LQ>1
indi...
Staff headcount - turnover
o Very small (< 2 milj EUR)
o SMEs (2 – 10 m EUR)
o Large enterprises:
Cultural Industries BRD
...
From the entrepreneur’s perspective
From the SMEs perspective, three markets:
• The ‘arts’ field: pure creative work
• Art...
CCI : Three Dimensions
Social dimension:
• fostering territorial cohesion, integration and identity
• reinforcing self-con...
Business categories
• Artisan – Designer driven purely by aesthetic
motivation
• Solo – Individual designer focused on gro...
Labour Market Characteristics
• Labour market of the CCIs is complex
• Thrives on numerous small initiatives
• Careerwise ...
Product characteristics
• Creative inputs and products are abundant
• Hypercompetitive environment
• Succes is uncertain: ...
Entrepreneurship indicators
OECD, Measuring entrepreneurship, 2008
Cultural Business Modelling
Autonomous
sources of income
Product/Market
Combinations
Real Estate
Merchandising
External so...
Challenges
• CCIs are different than other enterprises;
differences in size and characteristics;
general policies do not a...
26 March 2010 rene kooyman
2 . The specific size and characteristics of the CCIs
should be recognized and catered for,
esp...
26 March 2010 rene kooyman
3. The specific character of the 'missing middle'
should be accounted for.
Policy support shoul...
26 March 2010 rene kooyman
5. It should be possible
to exempt micro-entities or nano-enterprises
from the accounting oblig...
26 March 2010 rene kooyman
7. Establish a Pan-European
Creative IPR advice and Intelligence Service that can
stimulate the...
26 March 2010 rene kooyman
10. Establish a coordinated investment map
in the EU - to map the current investment
landscape ...
26 March 2010 rene kooyman
13. Create national credit institutes, whose mission is:
• to contribute to the development of ...
26 March 2010 rene kooyman
16. Use an entrepreneurial life cycle model
to understand the development and needs
for support...
26 March 2010 rene kooyman
18. Initiate and support initiatives
aimed at raising the profile
of career paths and commercia...
26 March 2010 rene kooyman
21. Start an Action Program
supporting CC entrepreneurship
in the CCIs covering the EU countrie...
26 March 2010 rene kooyman
22. Organize and initiate a Support Structure,
through partnership initiatives and via
A Creati...
26 March 2010 rene kooyman
25. Support and promote
regional and national
coordinating bodies and
knowledge centres for the...
26 March 2010 rene kooyman
28. Establish a Creative Economy
Learning and Skills Council
as the lead policy development bod...
26 March 2010 rene kooyman
29. Career Development Support
at the Educational Institutions and Universities
Introduce an EU...
26 March 2010 rene kooyman
32. Initiate and promote widely available
access to ICT in production, marketing
and distributi...
26 March 2010 rene kooyman
35. Support the development of
regional infrastructures. Impulse strategies
Towards regional in...
26 March 2010 rene kooyman
37. Develop a Creative Cluster
Partnership Programme
that supports knowledge exchange initiativ...
26 March 2010 rene kooyman
40. Initiate and develop a
Creative Industries Research Programme
that supports knowledge excha...
26 March 2010 rene kooyman
42. These Recommendations should –
after discussion in open coordination
and additional amendme...
CCIS: URBAN CONTEXT
Europe in times of crisis
Significant developments:
• Urbanisation
• From Industry to Knowledge
• Absence of growth
• ‘Old...
CCIs AS KEY STRATEGIC FACTOR
• CCIs drivers of economical growth (UNCTAD)
• Drivers of innovation: driving innovative
proc...
The Urban Dimension
• Territorial approach: zoning
• Diversified cultural environments (Jacobs)
• Social integration/ident...
City Policy & Planning Paradigm
• Developed for and by the industrial economy
• Separation of 'working' and 'living' throu...
Entrepreneurial behaviour:
The Creation of Economic, Social and Cultural
Value
 cultural fabric of the Creative Industry ...
Spatial components: metropolis and decay
• From
Industry to
Knowledge
Major Stakeholders in Urban Development
44
Community
Stakeholders
Cultural
Organizations
Community
Activist/
Volunteers
Re...
Urbanisation: the values of City-life
• Cultural and Economical Capital
• Cultural Class
• Identity and Branding
• Demogra...
EU CURE Project
• Creative Urban Renewal in Europe (CURE)
• Aims to facilitate triggered growth of the
creative economy in...
Creative Zone Innovator
• Creative Zone Innovator: integrated
approach to urban, economic, cultural,
social and entreprene...
Creative
Zone
Indicators
How is it done: radical redefinition
Edinburgh:
• Ice Store
• CCI Outlet
• Job
creation
rainingRevitalisation of a shoppin...
Redefinition of cultural identity
Brugge (Belgium):
Vocational
professions
as cultural heritage
Hagen DE
Textile factory:
1822 - 1996
Methods and procedures
• Radically re-interpret the area
• Define identity and profile
• Spread the word; Corporate
Commun...
Investing in the Creative Ecosystem
The creative ecosystem: arts and culture, nightlife, the
music scene, restaurants, aff...
Creative entrepreneurs’ perspective
• Social capital: resources based on group
membership, relationships, networks of
infl...
That’s
the way
it’s done!
Rene Kooyman August 2013
http://cci.hku.nl/ http://cure-web.eu
www.rkooyman.com
The Entrepreneur...
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2013 hku maam edcci

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Entrepreneuril Dimension Cultural and Creative Industries. Master Class sept 2013.

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2013 hku maam edcci

  1. 1. The entrepreneurial dimension of cultural and creative industries especially SMEs Rene Kooyman 15 January 2010 Specific Characteristics of CCIs
  2. 2. It’s me ! • Electrician; high/low voltage (HTS Oudenoord) • Utrecht Conservatory of Music (HKU) • Master (Drs) Social Sciences: UU RUG • Regional Development Office Sligo , Ireland • Head R&D Nat Institute Art Education (LOKV) • European Commission Luxembourg (IPR) • DEA (post doc) Economy University Geneva • Study Counsellor Institute of Finance and Management University Geneva • Master Urban Area Development: HU • Lecturer HKU (HTS Oudenoord)
  3. 3. 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 integration • Reinforcing self-confidence of individuals and communities
  4. 4. 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.’
  5. 5. UNCTAD Creative Economy report 2008
  6. 6. Contribution Cultural/Creative sector • UNCTAD: Creative Economy Report 2010 • EU: See EDCCI Page 102
  7. 7. The new SME definition Three criteria: • Staff headcount • Annual turnover or: • Balance sheet turnover • ????
  8. 8. Size of Enterprises By sector across CCIs eurokleis 2009 EDCCI: Page 64
  9. 9. CCIs : EU Top Regions LQ is an indicator of CCI employment relative to the total employment of the region, where LQ>1 indicates an over-representation of CCI employment Source: European Cluster Observatory See EDCCI Page 102
  10. 10. Staff headcount - turnover o Very small (< 2 milj EUR) o SMEs (2 – 10 m EUR) o Large enterprises: Cultural Industries BRD o 763.000 taxable employees Fesel/Söndermann BRD 2009 97% of headcount 27 % turnover 3 % headcount 32 % turnover < 1 % nr headcount 40 % turnover o 210.000 Free-lance workers not registered Creative industries: headcount / turnover
  11. 11. From the entrepreneur’s perspective From the SMEs perspective, three markets: • The ‘arts’ field: pure creative work • Arts related markets: teaching, production, administration, art management • Non-arts markets, in order to generate additional income Personal characteristics and differences: • Entrepreneurial success • Professional achievement • Art creation • Professional career Q: What’s an entrepreneur ???
  12. 12. CCI : Three Dimensions Social dimension: • fostering territorial cohesion, integration and identity • reinforcing self-confidence (individuals /communities) • participate in the expression of cultural diversity. The entrepreneurial dimension: • owe one's own enterprise, entrepreneurial risk • value creation • innovative practices : new products, forms of organization, new markets, new production methods, new sources of supplies and materials The economical dimension: • Products/marketing, labour markets, turnover
  13. 13. 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
  14. 14. Labour Market Characteristics • 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, temporary contracts, self-employment , free-lancers • Multiple job-holdings; combined other sources • New type of employer; the ‘entrepreneurial individual’ or ‘entrepreneurial cultural worker’ • Does not fit into typical patterns of full-time pro’s • Heterogeneity of human resources categories; higher professional training, vernacular backgrounds, craft industry, any other category
  15. 15. Product characteristics • Creative inputs and products are abundant • Hypercompetitive environment • Succes is uncertain: ‘nobody knows’ • 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 often short
  16. 16. Entrepreneurship indicators OECD, Measuring entrepreneurship, 2008
  17. 17. Cultural Business Modelling Autonomous sources of income Product/Market Combinations Real Estate Merchandising External sources Sponsoring Matching Co-financing Creation of local funds Contributions of common interest Mecenas / Business Angels Governmental facilities Subsidies
  18. 18. 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
  19. 19. 26 March 2010 rene kooyman 2 . The specific size and characteristics of the CCIs should be recognized and catered for, especially with regards to policy support, support structures and initiatives 1. Any policy aiming at innovation and economic support to foster and develop innovative power must integrate the culture and creative industries, as a sector cutting across economic branches, into its economic policy concepts Recommandations
  20. 20. 26 March 2010 rene kooyman 3. The specific character of the 'missing middle' should be accounted for. Policy support should make a distinction between the large- and the very-small initiatives. The small-size enterprises should be targeted from the micro-SME perspective 4. A special category of micro-initiatives/nano-enterprises should be introduced into the EU policy framework
  21. 21. 26 March 2010 rene kooyman 5. It should be possible to exempt micro-entities or nano-enterprises from the accounting obligations to draw up annual accounts 6 . The European Commission should define the minimum restrictions regarding the minimum standard to which Cultural and Creative nano-enterprises should report their activities. Member States should remain free to add further obligations.
  22. 22. 26 March 2010 rene kooyman 7. Establish a Pan-European Creative IPR advice and Intelligence Service that can stimulate the fundamental reform of the existing IPR Regulation within the European Community 8. The EU should avoid over‐regulating the digital industries and should favour voluntary self‐regulation wherever possible 9. Improved co‐ordination of IP policies and realistic, applicable IP enforcement is an issue which the EU needs to address and should play a leading role II Environmental factors
  23. 23. 26 March 2010 rene kooyman 10. Establish a coordinated investment map in the EU - to map the current investment landscape covering the 27 EU Countries 11. Launch a pan-European Creative Investment Fund – a dedicated equity fund for growth-orientated Creative businesses that operates across a European-wide portfolio of Creative businesses. This pan-European Creative Investment Fund should back-up national financial institutions involved in CCI Credit Schemes 12. Initiate and support initiatives to create 'soft loans' , backed-up by the national governments, stimulating the CCIs, combined with entrepreneurial guidance and support
  24. 24. 26 March 2010 rene kooyman 13. Create national credit institutes, whose mission is: • to contribute to the development of the CCIs through facilitating the access to bank financing • enlarge the domestic supply of venture capital • take initiatives to develop national venture funds • improve venture market regulation 14. Stimulate a European Creative Investment League – developing a network of interested business angels and a portfolio of creative portfolio investment schemes 15. Support the creation and implementation of a low Vat Rate and other tax incentives to labour intensive creative services and products
  25. 25. 26 March 2010 rene kooyman 16. Use an entrepreneurial life cycle model to understand the development and needs for support for cultural and creative workers. 17. Focused on five core qualities: o Vision Development o Positioning in the market o Return on Creativity competences o Communication skills o Networking and teamwork Put these core qualities in the centre of the supportive systems. III Cultural and creative entrepreneurship
  26. 26. 26 March 2010 rene kooyman 18. Initiate and support initiatives aimed at raising the profile of career paths and commercial opportunities in the Cultural and Creative Industries 19. Stage a Creative Entrepreneurship Awards Programme - connecting the existing Creative business initiatives in the 27 countries 20. Initiate and support a system of comparison of educational grades and requirements in the CCIs at EU level, and recognition of each other's degrees and diplomas.
  27. 27. 26 March 2010 rene kooyman 21. Start an Action Program supporting CC entrepreneurship in the CCIs covering the EU countries. It should comprise: 1. A Knowledge Centre on the EU level (data-collection and knowledge dissemination) 2. An EU Campaign for educational and training institutes, concentrated on entrepreneurial skills 3. Supportive strategies on Regional and National level 4. An EU-wide Award Program IV Supporting entrepreneurship
  28. 28. 26 March 2010 rene kooyman 22. Organize and initiate a Support Structure, through partnership initiatives and via A Creative Entrepreneurialism Portal – as a web-portal and face-to-face delivery mechanism. 23. Promote diminishing the financial start-up costs for CC SMEs 24. Launch a Creative Entrepreneurialism campaign as an education and economic development policy – targeting schools, universities and early stage creative businesses
  29. 29. 26 March 2010 rene kooyman 25. Support and promote regional and national coordinating bodies and knowledge centres for the CCIs 26. Develop cross-institutional cooperation between Creative education institutions and programmes: A European Creative Academy Network and delivery vehicle 27. Support the educational attention and quality requirements in Higher Professional Training and Academic Institutions
  30. 30. 26 March 2010 rene kooyman 28. Establish a Creative Economy Learning and Skills Council as the lead policy development body and broker between industry and education Harmonise Creative qualifications 29. Support the educational attention and the development of entrepreneurial models and curricula specifically catered for the CCIs.
  31. 31. 26 March 2010 rene kooyman 29. Career Development Support at the Educational Institutions and Universities Introduce an EU Creative Student Exchange Programme. 30. Establish an EU Creative Economy Learning and Skills Network; a policy development and broker between industry and education 31. Launch a Creative Entrepreneurialism campaign targeting schools, universities and early stage creative businesses
  32. 32. 26 March 2010 rene kooyman 32. Initiate and promote widely available access to ICT in production, marketing and distribution of Creative Goods, as part of the CC Entrepreneurialism Portal 33. Initiate a European network of support structures, a policy development body and broker between industry and education, driving creativity and learning agendas 34. Launch an EU creativity campaign in target sectors, expressed at local, national and international trade shows V Focussing on CCI SMEs
  33. 33. 26 March 2010 rene kooyman 35. Support the development of regional infrastructures. Impulse strategies Towards regional initiatives and support structures. 36. Each member states can develop its own approach of the size and profile of regions. In order to succeed a regional infrastructure should cover: • institutes of higher art education institutes • a governmental programme on the CCIs, including self employed individuals and nano firms • a significant number of CC SMEs • a general SME service and training institute
  34. 34. 26 March 2010 rene kooyman 37. Develop a Creative Cluster Partnership Programme that supports knowledge exchange initiatives through the Regions, investing in partner initiatives and brokering relationships between businesses 38. Develop a European Creative Cluster Map, that showcases strengths and launches the proposition of the different Regions as a Connected Global Creative Cluster 39. The EU installs a Annual Art Factory Competition: The Art Factory Prize of the Year
  35. 35. 26 March 2010 rene kooyman 40. Initiate and develop a Creative Industries Research Programme that supports knowledge exchange initiatives between the CCIs and University and Industrial Research Centres 41. Develop, initiate and support R&D Programs that cater for the specific characteristics of the CCIs. Promote flexible, fast-track R&D programming that mirror the speed and flexibility of the CCIs.
  36. 36. 26 March 2010 rene kooyman 42. These Recommendations should – after discussion in open coordination and additional amendment – be put into practice by means of an EU Working Document, leading to an EU Action Program for the CCIs • General remarks ?? • Recommendations missing ???
  37. 37. CCIS: URBAN CONTEXT
  38. 38. Europe in times of crisis Significant developments: • Urbanisation • From Industry to Knowledge • Absence of growth • ‘Old School’ no longer applies: innovation • Small and Medium Enterprises (SMEs) of strategic value • The economical force of the Cultural and Creative Industries (CCIs)
  39. 39. CCIs AS KEY STRATEGIC FACTOR • CCIs drivers of economical growth (UNCTAD) • Drivers of innovation: driving innovative processes into realisation • CCIs at the core of cultural and industrial networks • CCIs and Technological change/digitisation two‐way process • CCIs spill‐over: Corporate Esthetics, Identity and Branding • Cultural and Creative Content as a relative autonomous, independent economical factor
  40. 40. The Urban Dimension • Territorial approach: zoning • Diversified cultural environments (Jacobs) • Social integration/identification (‘belonging’) and distinction (Bourdieu/Florida) • Integrated approach: – Physical: bricks and mortar – Social – Infrastructure: networking • Conceptualisation /re-evaluation
  41. 41. City Policy & Planning Paradigm • Developed for and by the industrial economy • Separation of 'working' and 'living' through zoning • Powers are restrictive, not permissive: 'you can’t', rather than 'you can' • Professionalized: ‘planner knows best' • City is struggling under its own weight, unable to adapt quickly enough to changing global, social economic environment • Verbal, rational/analytical, more than ‘understanding’
  42. 42. Entrepreneurial behaviour: The Creation of Economic, Social and Cultural Value  cultural fabric of the Creative Industry thrives on numerous small initiatives  high share of freelancers and very small companies  multiple job‐holdings; combined sources of income  new type of employer is emerging; the ‘entrepreneurial individual’  no longer fits into typical patterns of full-time professions (EU job potential)
  43. 43. Spatial components: metropolis and decay • From Industry to Knowledge
  44. 44. Major Stakeholders in Urban Development 44 Community Stakeholders Cultural Organizations Community Activist/ Volunteers Resident Immigrant Youth clubs/groups Immigrant services Community Media Chamber of Commerce Businesses Municipality
  45. 45. Urbanisation: the values of City-life • Cultural and Economical Capital • Cultural Class • Identity and Branding • Demographics
  46. 46. EU CURE Project • Creative Urban Renewal in Europe (CURE) • Aims to facilitate triggered growth of the creative economy in decayed urban areas in medium-sized cities in Northwest-Europe • This will be done by developing and testing the innovative transnational model ‘Creative Zone Innovator’ to plan and to develop creative zones. • The project brings together 7 project partners in Germany, Belgium, France, the Netherlands and the UK.
  47. 47. Creative Zone Innovator • Creative Zone Innovator: integrated approach to urban, economic, cultural, social and entrepreneurial development • ABC: Area , Building, Creative entrepreneur • Four Dimensions: a. Learning Lab: learning environment b. Cultural Value Chain: networked alliances c. Flow of diversity: continuous new impulses d. Cultural Business Modeling
  48. 48. Creative Zone Indicators
  49. 49. How is it done: radical redefinition Edinburgh: • Ice Store • CCI Outlet • Job creation rainingRevitalisation of a shopping-mall in decline
  50. 50. Redefinition of cultural identity Brugge (Belgium): Vocational professions as cultural heritage
  51. 51. Hagen DE Textile factory: 1822 - 1996
  52. 52. Methods and procedures • Radically re-interpret the area • Define identity and profile • Spread the word; Corporate Communication • Build support networks • Take time • More Dash than Cash • Create a financial base
  53. 53. Investing in the Creative Ecosystem The creative ecosystem: arts and culture, nightlife, the music scene, restaurants, affordable spaces, lively neighbourhoods, spirituality, density, public spaces etc. 1. Strengthen creative assets and encourage collaboration 2. Continue revitalizing downtown areas as nodes of creativity 3. Develop an infrastructure that will improve the quality of life for residents and attract the creative class (hiking and cycling trails, festivals, development of cultural assets, ways to celebrate the waterfront etc. )
  54. 54. Creative entrepreneurs’ perspective • Social capital: resources based on group membership, relationships, networks of influence and support; clusters • Economic capital: command over economic resources (cash, assets); based on entrepreneurial capabilities and support • Cultural capital: forms of knowledge; skills; education and language skills • The urban perspective: choose your position in the urban nomad chain ; use support functions
  55. 55. That’s the way it’s done! Rene Kooyman August 2013 http://cci.hku.nl/ http://cure-web.eu www.rkooyman.com The Entrepreneurial Dimension of Cultural and Creative Industries

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