Temple Bar Talks: R. Kooyman


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Temple Bar Talks June 30th

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  • Intro title, poem Look at the people we are talking about; creative minds, searchers searching for the new, those things that have not been made yet Yes, we’re in an economical crisis, but these are the people who are going to take us out I know it is boring , but let’s start to discuss definitions , so we know what we are talking about
  • Years of discussion, with different models We will follow the EU definition Difference between ‘cultural industries’ culture based regardless the commercial value and creative industries, that use culture for functional products Mind: these disciplines have always been market oriented, professions that were entrepreneurial
  • We talk about small and medium enterprises Definitions based on staff headcount, turnover and balance sheet Medium, smal, smaller and smallest! You are professionals; how many percent of the sector consists of the smallest, the micro enterprises? Do I hear a percentage? More; going once, more going twice, more ; sold ! Let’s take a look
  • More than seventy percent the smallest Therefore we have created an even smaller category, not micro but nano-enterprises Even these nano enterprises (1 – 3 persons) count for more than fifty percent Let’s take a look at the turnover How many percent of the turnover is generated by the micro-enterprises (less than 10 persons) ? 74% of the number of enterprises account for how much of the annual turnover?
  • 74 percent of the number of enterprises account for 27 percent of the turnover
  • Interesting here is that some thirty percent of the free-lance workers are not registered
  • Product are abundant; it is impossible to see all theatre shows in the weekend, go to all the exhibitions, etc. Hypercompetitive, if you write a book there are many more authors, or songwriters, of visual artists, or architects Knowledge based activities, have to know ‘what’s going on’
  • Small Business Act is EU’s flagship Ireland is very well positioned, compared to the EU average Entrepreneurship; entrepreneurial activities, desire to become self-employed, participation in entrepreneurial education, Responsive administration not consistent: positive effect of start-up costs, but high percentage of enforcing costs. Time to start a business (13 days), to register a property, e-government however are average Single market: implementation of EU directives positive Skills and innovation above average; online sales, but cooperation of SMEs with other SMEs is lacking behind Internationalisation: mixed picture; income earned abroad above average, but the share of turnover based on exports lags behind the average
  • CCI Support on a national level – in order to deliver strong innovation results - needs coordinated effort and coherence on Culture, Economic affairs. CCIs address both cultural and economical factors. CCIs are special; creative minds are not the same! A Game developer needs a different approach than an architect or a musician. National bodies shape the regulatory framework, the administrative burden. Regions play an intermediary role (they can use EU structural Funds, local investment Funds Jessica). At the local level person-to-person support is needed. Entrepreneurial skills: map the current an future skills’ needs, include entrepreneurial training in curricula Local support: three approaches; Creative cities, urban renewal, developing real estate in a certain area Economical approach: support for micro-enterprises, support on financing, accounting, tax matters Socio-cultural approach: support for cultural activities, exhibitions, performances, fairs, etc.
  • Temple Bar Talks: R. Kooyman

    1. 1. UU / HKU Rene KOOYMAN Dublin 30 June 2011
    2. 2. The cultural and creative industries <ul><li>‘ Cultural industries ’: goods or services that </li></ul><ul><li>embody cultural expressions, irrespective </li></ul><ul><li>commercial value : film, DVD, video, television </li></ul><ul><li>and radio, video games, new media, music, books and press, performing arts, visual arts. </li></ul><ul><li>‘ Creative industries ’ : use culture as an input , whose outputs are mainly functional : architecture, advertising, design and fashion.’ </li></ul>
    3. 3. <ul><li>staff headcount </li></ul><ul><li>annual turnover, </li></ul><ul><li>or </li></ul><ul><li>annual </li></ul><ul><li>balance sheet </li></ul>The SME definition
    4. 4. <ul><li>Size of enterprises by sector across CCIs </li></ul><ul><li>Eurokleis 2010 </li></ul>
    5. 5. <ul><li>Distribution of total turnover per size class </li></ul><ul><li>Eurokleis 2010 </li></ul>
    6. 6. Staff headcount - turnover <ul><ul><li>Creative industries: </li></ul></ul><ul><ul><li>Micro (< 2 milj € / 10 p) </li></ul></ul><ul><ul><li>Medium (2 – 10 m € / 50 – 250 p) </li></ul></ul><ul><ul><li>Large enterprises (250+): </li></ul></ul><ul><ul><li>2006: Cultural Industries BRD </li></ul></ul><ul><ul><li>763.000 taxable employees </li></ul></ul><ul><ul><li>Fesel/Söndermann BRD 2009 </li></ul></ul><ul><li>74% nr of enterprises 27 % turnover </li></ul><ul><li>3 % enterprises 32 % turnover </li></ul><ul><li>< 1 % nr enterprises 40 % turnover </li></ul><ul><li>210.000 Free-lance workers </li></ul><ul><li>not registered </li></ul>
    7. 7. SPECIFICITIES OF CCIs Labour market <ul><li>Thrives on numerous small initiatives </li></ul><ul><li>Non-conventional forms of employment ; part-time work, temporary contracts, self-employment , free-lancers; career high degree of uncertainty </li></ul><ul><li>Multiple job-holdings ; combined sources of income </li></ul><ul><li>Heterogeneity of human resources ; higher professional training, vernacular backgrounds, craft industry, any other category </li></ul><ul><li>No longer fits typical patterns of full-time professions </li></ul><ul><li>New type of employer ; the ‘entrepreneurial individual’ or ‘entrepreneurial cultural worker’ </li></ul>
    8. 8. DIFFERENCES PRODUCT CHARACTERISTICS <ul><li>Creative inputs and products are abundant </li></ul><ul><li>Hypercompetitive environment </li></ul><ul><li>Knowledge-based and labour-intensive input </li></ul><ul><li>Not ‘simply merchandise’, but express cultural uniqueness and identities </li></ul><ul><li>Experience goods ; production and consumption ‘on the spot’ </li></ul><ul><li>Product life-cycles are short </li></ul>
    9. 9. CCIs AS KEY STRATEGIC FACTOR <ul><li>CCIs drivers of economical growth (UNCTAD) </li></ul><ul><li>Drivers of innovation : driving innovative processes into realisation </li></ul><ul><li>Flexibility ; direct producer/client interaction; meet the clients needs </li></ul><ul><li>CCIs stand at the core of cultural and industrial networks </li></ul><ul><li>CCIs and Technological change/digitisation two-way process </li></ul>
    10. 10. <ul><li>The OECD/EUROSTAT framework for Entrepreneurship indicators 2008 </li></ul>Entrepreneurship Determinants Themes
    11. 11. <ul><li>Access to debt financing </li></ul><ul><li>Business Angels </li></ul><ul><li>Access to Venture Capital </li></ul><ul><li>Access to other types of equity </li></ul><ul><li>Tax incentives </li></ul><ul><li>Bankruptcy Legislation </li></ul>Access to finance and income generation: Cultural Business Modeling Access to Venture Capital
    12. 12. <ul><li>Weaknesses in business skills , training and experience of entrepreneurs </li></ul><ul><li>Traditional Business Education does not fit </li></ul><ul><li>Entrepreneurship Education ( skills ) </li></ul><ul><li>Entrepreneurship Infrastructure (Public and Private) </li></ul>Lack of Entrepreneurial capabilities
    13. 13. <ul><li>Risk attitude in society </li></ul><ul><li>Micro businesses: Artisan, Creative Partnership or Solo </li></ul><ul><li>Small-business: </li></ul><ul><ul><li>Designer and Business Partner </li></ul></ul><ul><ul><li>Designer and Licensing Partner </li></ul></ul><ul><ul><li>Designer and Manufacturer </li></ul></ul><ul><ul><li>Partnership with a formal Investor </li></ul></ul><ul><li>SMEs and the Financial Sector </li></ul>Entrepreneurial Culture
    14. 14. <ul><li>Administrative Burdens (entry and growth) </li></ul><ul><li>Safety, health, environment and product regulation </li></ul><ul><li>Labour Market Regulation   </li></ul><ul><li>Social and Health Security </li></ul><ul><li>Income Taxes </li></ul><ul><li>Business Taxes and Fiscal Incentives </li></ul>Regulatory framework
    16. 16. SUPPORT <ul><li>Coordinated support shared by several Ministries: Culture, Economic Affairs, Education, Labour) </li></ul><ul><li>Recognition of the specific characteristics CCIs: specific support when needed. A general approach will not suffice </li></ul><ul><li>Bridging the entrepreneurial skills gap: provide training </li></ul><ul><li>Three specific dimensions: </li></ul><ul><li>Urban Area development: integrate CCIs in urban renewal, create breeding places, networks </li></ul><ul><li>The Economical approach: job creation </li></ul><ul><li>The social-cultural approach: active and receptive cultural participation, support festivals, exhibitions, art routes, art education </li></ul>
    17. 17. UU / HKU Rene KOOYMAN Dublin 30 June 2011