Presentation Amman, Jordan; OASIS 500. Incubator Creative Economy Middle East / HIVOS.

1. The Entrepreneurial Dimension
of Cultural and Creative Industries
Rene Kooyman
OASIS 500 Conference Amman

2. Cultural and creative industries
‘Cultural industries’: goods or services
that embody cultural expressions,
irrespective commercial value: film, DVD,
video, television and radio, video games,
new media, music, books and press,
performing arts, visual arts.
‘Creative industries’ :
use culture as an input ,
whose outputs are mainly functional:
architecture, advertising, gaming,
design and fashion.’

3. Delineation
of the
Cultural
&
Creative
sector
(KEA 2005)

4. Contribution Cultural/Creative sector
• UNCTAD: Creative Economy Report 2010
• EU: See EDCCI Page 102

5. The new SME definition
Three criteria:
• Staff headcount
• Annual turnover
or:
• Balance sheet
turnover
• ????

6. Size of Enterprises
By sector across CCIs
eurokleis 2009
EDCCI: Page 64

7. 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

8. 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

9. 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

10. 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 Manufacturer – Designer in
contractual agreement with manufacturer
• Partnership with Investor – Designer in
partnership with a formal investor
NESTA 2008

11. 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

12. 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

13. Entrepreneurship indicators
OECD, Measuring entrepreneurship, 2010

14. Cultural Business Modelling
Autonomous
sources of
income
Product/Market
Combinations
Real Estate
Merchandising
External
sources
Sponsoring
Matching
Co-financing
Creation of local
funds
Contrubutions
of common
interest
Mecenas /
Business Angels
Governmental
fascilities
Subsidies
Cultural
Business
Modelling

15. Utrecht Centraal Museum
• Restaurant
• Garden
• Shop
• New Media
• Rietveld Schroderhouse
• Dick Bruna house

16. Het Huis Utrecht
Budget 400.000
Subsidie 100.000
Market 300.000
Office space/flex
Theater
accomodations
Restaurant/catering

17. Nicole Driessens / Ivo van den Baar
Rotterdam
DESIGNPRODUCTIONS ON DEMAND

18. Rene Kooyman Dec 2014
rkooyman@rkooyman.com
www.rkooyman.com
That’s
the way
it’s done!
The Entrepreneurial Dimension
of Cultural and Creative Industries
the Middle East perspective