Entrepreneurial dimension of cultural and creative industries Dublin
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6/28/2011 1 Rene KOOYMAN Dublin 30 June 2011 THE ENTREPRENEURIAL DIMENSION OF CULTURAL AND CREATIVE INDUSTRIES ESPECIALLY SMEs UU / HKU The cultural and creative industries ‘Cultural industries’: goods or services that embody cultural expressions, irrespective embody cultural expressions, irrespective commercial value: film, DVD, video, television and radio, video games, new media, music, books and press, performing arts, visual arts. ‘C i id i ’ l i ‘Creative industries’ : use culture as an input , whose outputs are mainly functional: architecture, advertising, design and fashion.’
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Transcript of Entrepreneurial dimension of cultural and creative industries Dublin
6/28/2011
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Rene KOOYMANDublin30 June 2011
THE ENTREPRENEURIAL DIMENSIONOF CULTURAL AND CREATIVE INDUSTRIESESPECIALLY SMEs
UU / HKU
The cultural and creative industries
‘Cultural industries’: goods or services that
embody cultural expressions, irrespectiveembody cultural expressions, irrespective
commercial value: film, DVD, video, television
and radio, video games, new media, music, books and press, performing arts, visual arts.
‘C i i d i ’ l i ‘Creative industries’ : use culture as an input , whose outputs are mainly functional: architecture, advertising, design and fashion.’
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staff headcount
l t
The new SME definition
annual turnover, or
annual balance sheet
Size of enterprises by sector across CCIs Eurokleis 2010
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Distribution of total turnover per size class Eurokleis 2010
Staff headcount ‐ turnover
Creative industries:
o Micro (< 2 milj € / 10 p)
o Medium (2 – 10 m € / 50 – 250 p)
o Large enterprises (250+):
2006: Cultural Industries BRD
74% nr of enterprises 27 % turnover
3 % enterprises 32 % turnover
< 1 % nr enterprises 40 % turnover
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o 763.000 taxable employees
Fesel/Söndermann BRD 2009
o 210.000 Free‐lance workers
not registered
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SPECIFICITIES OF CCIs Labour market
• Thrives on numerous small initiatives
• Non‐conventional forms of employment; part‐time work, temporary contracts, self‐employment , free‐work, temporary contracts, self employment , freelancers; career high degree of uncertainty
• Multiple job‐holdings; combined sources of income
• Heterogeneity of human resources ; higher professional training, vernacular backgrounds, craft industry, any other category
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• No longer fits typical patterns of full‐time professions
• New type of employer; the ‘entrepreneurial individual’ or ‘entrepreneurial cultural worker’
DIFFERENCES PRODUCT CHARACTERISTICS
• Creative inputs and products are abundant
• Hypercompetitive environment
• Knowledge‐based and labour‐intensive input
• Not ‘simply merchandise’, but express cultural uniqueness and identities
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• Experience goods; production and consumption ‘on the spot’
• Product life‐cycles are short
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CCIs AS KEY STRATEGIC FACTOR
• CCIs drivers of economical growth (UNCTAD)
• Drivers of innovation: driving innovative processes into Drivers of innovation: driving innovative processes into realisation
• Flexibility; direct producer/client interaction; meet the clients needs
• CCIs stand at the core of cultural and industrial networks
• CCIs and Technological change/digitisation two‐way process
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• CCIs spill‐over: Corporate Identity and Branding
• Cultural and Creative Content as independent economical factor
Entrepreneurship Determinants Themes
The OECD/EUROSTAT framework for Entrepreneurship indicators 2008
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Access to finance and income generation: Cultural Business Modeling
Access to Venture Capital
Access to debt financing
Business Angels
Access to Venture Capital
Access to other types of equity
Tax incentives
Bankruptcy Legislation
Lack of Entrepreneurial capabilities
Weaknesses in business skills, training and experience of entrepreneurs
Traditional Business Education
Entrepreneurship Education (skills)
Entrepreneurship Infrastructure (Public and Entrepreneurship Infrastructure (Public and Private)
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Risk attitude in society
Entrepreneurial education (mindset)
Entrepreneurial Culture
• Micro businesses: Artisan, Creative Partnership or Solo
• Small‐business:
• Designer and Business Partner
• Designer and Licensing Partner
• Designer and Manufacturer
• Partnership with a formal Investor
• SMEs and the Financial Sector
Administrative Burdens (entry and growth)
Bankruptcy Legislation
•Regulatoryframework
Regulatory framework
p y g
Safety, health, environment and product regulation
Court‐legal framework
Labour Market Regulation
Social and Health Security
Income Taxes
Business Taxes and Fiscal Incentives
Wealth and Bequest Taxation
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IRELAND SME PERFORMANCE REVIEW 2008
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SUPPORT
Transversal:
• Coordinated support shared by several Ministries: Ministry of Culture, Economic Affairs, Education, financial support (labour)
• Recognition of the specific characteristics CCIs: offer specific support when needed. A general approach will not suffice
• Bridging the entrepreneurial skills gap: provide training and support in entrepreneurial skills
Three specific dimensions:
• Urban Area development: integrate CCIs in urban renewal, use abandoned (industrial) real estate create breeding places networks
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abandoned (industrial) real estate , create breeding places, networks
• The Economical approach: entrepreneurial support at local/neighborhood level
• The social‐cultural approach: active and receptive cultural participation, support festivals, exhibitions, art routes, art education
