The entrepreneurial dimension of cultural and creative industries. EU EACEA Research.

1. edcci the entrepreneurial dimension of the cultural and creative industries Utrecht School of the Arts (HKU) June 2011 Contact: rkooyman@rkooyman.com

2. the entrepreneurial dimension of the cultural and creative industries creativeentrepreneurship thematicoutcomes recommendations introduction

3. introduction

5. The aim of this study was to provide a better understanding of the operations and needs of companies in the CCIs, especially small and medium-sized enterprises (SMEs).

7. Initial literature review

8. Pilot expert interviews (6)

9. Questionnaires for experts from ministries of culture and economics and from sectoral organisations (59)

10. Face to face interviews with experts (65)

11. Best practice examples (40)

12. Online survey for CCI enterprises (600)

14. Innovative solutions are needed to face the challenges of tomorrow, in particular, new approaches to growth are needed to respond to the financial crisis

15. At the same time, innovation is now widely recognised as encompassing more than just technological and scientific innovation. Soft innovation and creative design processes are increasingly relevant in this context

18. A cultural and creative entrepreneur can be understood as someone who creates or innovates a cultural and creative product / service and who uses entrepreneurial principles to organise and manage his/her creative activity in a commercial manner

19. Achieving a balance between creativity and entrepreneurship is not straightforward

21. CCIs rely heavily on networks: supporting networks can offer greater interaction between sectors, develop knowledge exchange between CCIs and other sectors and contribute to unlocking the innovative potential of CCIs

23. edcci: main thematic outcomes edcci general access to finance access to market IPR entrepreneurship skills access to innovation clusters and collaboration Three areas in bold are considered

25. However, our age increasingly requires an understanding of hybrid forms: innovation is not linear, it comes from multiple sources where the line between the user and the producer is blurred

27. Within this majority of 'micro-enterprises', almost 60% consist of very small businesses with only 1 to 3 employees

30. Some prioritise the cultural value of the creation over the economic value (creation oriented)

32. In the study’s online survey, access to finance was deemed by 33.8% of the respondents the most important business-related challenge when starting a company. This observation was confirmed by the sectoral experts who, when asked about the most important transversal issues faced in their own sectors, prioritised access to finance (37.9%)

35. The creative entrepreneur traditionally combines tangible information and communication technology with intangible information products: cultural qualities and ‘media content’.

36. Intangible assets such as novelty, soft innovation, copyright and creativity are often not reflected in accounts

37. The main obstacles reported by SME CCIs is risk aversion from financial institutions and the difficulty in getting grants

43. For the micro, small and even medium sized enterprise, it is exceptionally difficult to attract strategic investment

46. The absence of middle-sized enterprises makes it difficult for CC SMEs to compete with larger organisation: the asymmetry in the market position between the two extremes is striking.

47. Working on new collaborative paths to growth may boost their access to market

49. From our online survey, we saw that 52% of SMEs did not receive IPR advice before the start of their entrepreneurial activity, as opposed to 40% who did.

50. Those who did, received this mostly at the national level (38.5%) or from their sectoral organisation (20.5%) and 11% at the European level.

53. At the local level, the Chambers of Commerce often tackle aspects of educational support and provide courses for starting businesses and capacity building for young entrepreneurs.

55. edcci: 4) entrepreneurship skills edcci Question: In which phases of the life cycle would training in technical and financial skills be most useful? (Source: Eurokleis 2010, online survey)

59. edcci: 4) entrepreneurship skills edcci Question: Do you see a need for the development of advice and support centres specifically for the CCIs? (Source: Eurokleis 2010, online survey)

61. These priorities placed the spotlight on CCIs, acknowledging the role of the creative talent workforce and entrepreneurship as essential for tackling these challenges.

68. In the beginning of the entrepreneurial activity the CC entrepreneur will mostly rely on informal and personal networks

69. Later on, they will make more use of cluster initiatives

71. recommendations

73. ‘Culture-based creativity’ has the potential to have positive spill-over effects on the wider economy and society in general.

74. This creativity can act as a driver of non-technological innovation if the right enablers are put in place in order to develop a conducive environment for the entrepreneurial activity of the CCIs.

76. General

77. Accessing finance

78. Accessing markets

79. Bridging the entrepreneurial skills gap

80. Developing entrepreneurship for innovation

84. For example, tax exemptions for CCI products or services could encourage the production and distribution of CCIs products and services and stimulate growth across many sectors.

87. Supporting CCIs requires a multi-layered approach where innovation support can be complemented with financial and market support to CCIs.

88. This requires to take into consideration the different stages of the entrepreneurial life-cycle and the associated needs of the CCIs, especially micro-SMEs.

96. Unlocking special funds to promote the use of digital technologies in the CCIs such as undertaken through the MEDIA program for the audiovisual sector, should be promoted in other sectors.