110201 hku entrepreneurial dimensions creative economy eacea


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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

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