110201 hku entrepreneurial dimensions creative economy eacea
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Master Class Creative Economy 2010. EU Report, entrepreneurial dimension SME'sTRANSCRIPT
THE ENTREPRENEURIAL DIMENSIONOF CULTURAL AND CREATIVE INDUSTRIES
ESPECIALLY SMEs
Rene Kooyman1 February 2011
1 feb 2011 rene kooyman
THE CULTURAL AND CREATIVE INDUSTRIES
‘Cultural industries’ are those industries
producing and distributing goods or services
which at the time they are developed
are considered as a specific attribute, use or purpose,
which embody or convey cultural expressions,
irrespective of the commercial value they may have.
They include: film, DVD and video, television and radio, video games, new media, music, books and press, performing arts, visual arts.
‘Creative industries’ are those industries which use culture as an input but whose outputs are mainly functional. They include: architecture, advertising as well as design and fashion.’
UNCTAD Creative Economy report 2008
1 feb 2011 rene kooyman
THE KEA MODEL
NESTA refined modelbased on ‘analysis of sectors rather than creative activities based on individual talent’
Creative service providers:
Design, architecture, new
media, advertising
Creative content producers:
Tv and Radio, Fashion, Games,
Music, Film, Books
Creative experience
providers/creative originals
producers: visual artists,
designer-makers, performers,
opera, ballet, galleries,
museums; music, games
1 feb 2011 rene kooyman
DIFFERENT DIMENSIONS
Cultural and creative industries :
goods or services
which embody or convey cultural expressions,
irrespective of the commercial value they may have.
• Cultural value:• Creative and cultural capital• Fostering territorial identity and cohesion• Participate in the expression of cultural diversity
• Social dimension: • Social identity, integration and distinction• Reinforcing self-confidence of individuals and communities
• Entrepreneurial dimension: the entrepreneur !!!
1 feb 2011 rene kooyman
THE ENTREPRENEURIAL DIMENSION
The occupational perspective
• entrepreneurs own and manage one's own business enterprise
• create value: shifts economic resources• out of an area of lower and • into an area of higher productivity and greater yield
• assuming entrepreneurial risk • engagement in innovative practices• developing new and innovative products; forms of
organization; new markets; new production methods; new sources of supplies and materials
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DETERMINANTS OF ENTREPRENEURSHIP
• Regulatory framework: start-up costs, labor costs, etc.• R&D and technology: new inventions, new products or processes• Entrepreneurial capabilities: human and social capital • Culture: entrepreneur‘s behaviour, attitudes, overall effectiveness• Capital and Access to Finance: from early seed funds to stock
markets• Market conditions: public involvement in markets, competition in the
markets, access to foreign markets, procurement regulation, standardisation
• SME’s ???OECD / EUROSTAT 2008
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THE NEW SME DEFINITION
Three criteria:
• Staff headcount• Annual turnover
Or:• Balance sheet
turnover
• Nr of enterprises in each category ?
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DISTRIBUTION OF ENTERPRISES AMONG INDUSTRIES PER SIZE CLASS
Source:
Eurokleis 2009
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Distribution of Enterprises among Industries per size classEurokleis 2010
00,10,20,30,40,50,60,70,80,9
1
250 +
50 - 249
10 - 49
4 - 9
1 - 3
1 feb 2011 rene kooyman
Staff headcount - turnover
o Very small (< 2 milj EUR)o SMEs (2 – 10 m EUR)o Large enterprises:
2006: Cultural Industries BRDo 763.000 taxable employees
Fesel/Söndermann BRD 2009
96 % nr of enterprises 27 % turnover3 % enterprises 32 % turnover
< 1 % nr enterprises 40 % turnover
o 210.000 Free-lance workersnot registered
Creative industries:
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DISTRIBUTION OF TOTAL ASSETSEurokleis 2009
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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 Licensing Partner – Designer under
royalty contract• Designer and Manufacturer – Designer in
contractual agreement with manufacturer• Partnership with Investor – Designer in partnership
with a formal investor
NESTA 2008
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FROM THE ENTREPRENEUR’S PERSPECTIVE
From the SMEs perspective, three markets:
• The ‘arts’ field: pure creative work
• Arts related markets:
teaching, arts administration, art management
• Non-arts markets, in order to generate additional income
Personal characteristics and differences:
• Entrepreneurial success
• Professional achievement
• Art creation
• Professional career
personal motivation ?
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PERSONALMOTIVATION INENTERPRE- NEURSHIP
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SPECIFICITIES OF CCIs Labour market
• 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 work,
temporary contracts, self-employment , free-lancers• Multiple job-holdings; combined other sources of income• New type of employer; the ‘entrepreneurial individual’ or
‘entrepreneurial cultural worker’, clusters of entrepreneurs• No longer fits into previously typical patterns of full-time
professions• Diversity in skills acquisition; higher professional training,
vernacular backgrounds, craft industry, any other category
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DIFFERENCES PRODUCT CHARACTERISTICS
• Cultural goods have to be set apart; they
express cultural uniqueness and diversity
• Creative inputs and products are abundant
• Hypercompetitive environment
• 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 short
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CULTURAL BUSINESS MODELLING (CBM)
1. Market for cultural goods both volatile + unpredictable
2. Consumers are often not aware of their tastes; they
discover through repeated experiences in a sequential process of largely unsystematic ‘learning by consuming’
• Creative service providers – traditionally non subsidised• Creative content providers – mostly non subsidised• Creative experiences/original providers ‐ mostly subsidised
Combined Business Modelling:• Product Market Combinations (PMC’s), real estate, merchandising• Sponsoring, matching funds, co-financing, fund-raising• Business angels (mecenat), governmental fascilities, subsidies
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CROSS COUNTRYREGULATORY FRAMEWORKS
Source: Eurokleis 2009 Pan European Questionaire
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EU COUNTRY SPECIFICS
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ENTREPRENEURIAL LIFECYCLE FRAMEWORK
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CCIs AS KEY STRATEGIC FACTOR
• CCIs drivers of economical growth (UNCTAD)• Drivers of innovation:
Creativity – Innovation - Design• 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• CCIs indispensable at Corporate Identity and Branding • Cultural and Creative Content as independent
economical factor
1 feb 2011 rene kooyman
CHALLENGES
• CCIs are different than other enterprises;differences in size and characteristics;
general policies do not apply• CCIs are either very small (the bulk) or very big (the few)• The very small ones carry a load of administrative
obligations; accounting, legal registration, etc• Financial funds are hard to find; banks/investors do not
trust creatives (especially in times of crises)• Creative firms go through different stages; some of them
want to grow; others do not• Entrepreneurial skills are lacking; career development is
almost lacking recommendations ?
1 feb 2011 rene kooyman
RECOMMENDATIONS
• The specific size and characteristics of
the CCIs should be recognized• Make a distinction between the large
companies and the very small ones• Exempt nano-enterprises from accounting obligations• Launch a pan-european Creative Investment Fund,
create soft-loans , tax-incentives, business-angels• Create targeted support for the different stages of
development (start-ups, growth)• Establish a Creative Economy Learning & Skills network
and Career Development Support
http://cci.hku.nl
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QUESTIONS BRUSSELS FEB 3
Question 1:
How to start long term collaboration between CCI’s
and other sectors?
And which factors are important to succeed that collaboration?
Do we need to start with education programs for both sectors?
Or are there other ways to start that collaboration?
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.
How do you manage this development to ensure a growth in the requirements of this "truly stimulating creative environments for Europe's CCI's"?
1 feb 2011 rene kooyman
Question 3: There are a lot of definitions about the
CCI's. Some based on activities, some based on mission
and some based on copyright requirements.
What is your definition?
And how do you ensure that everyone is working on the same CCI's when the definitions are so divers?
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.
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.
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 ?
1 feb 2011 rene kooyman
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?
Question 6: Art and culture have a unique capacity to create green jobs... how so?
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?
Question 8: Have there been any interesting developments concerning the green paper topics lately?
THE ENTREPRENEURIAL DIMENSIONOF CULTURAL AND CREATIVE INDUSTRIES
ESPECIALLY SMEs
Rene Kooyman1 February 2011
Creative Industriesas key strategic sector