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NESTA and Scotland’s Futures Forum3rd September 07

The Creative Industries in Scotland: A time of change

hugh.mason@pembridge.netwww.pembridge.net

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Meet some creatives

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No - nogoal set

£0 -£500k

£500K -£1m £1m -

£5m £5mplus

No timescale

Less than 3yrs

3-4yrs time

4-5yrs time5-6yrs time

0

5

10

15

20

25

30

35

No

. of

Fir

ms

Firms Ambitions: Number of firms setting a financial goal and a timescale

Most Creative IndustriesSMEs do not seem to

have commercial goals.

Eg, in this recent survey ofregional film and TV

firms, >80% haveno commercial goal.

They are simply not onthe agenda of

economic growth

“It’s growth, Jim, but not as we know it”

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Lesson 1: be clear what ‘growth’ means

Doing great work?Cultural WealthWork focus

Building a better world?Social WealthWorkplace focus

Making money?Economic WealthMarket focusPerhaps 5% of SMEs

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Creating Economic Wealth

ArtScience

£

Products& Services

CultureResearch

InnovationCreativeIndustry

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Lesson 2: It’s all about IP

ArtScience

AestheticTechnical

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So how to support growth?

Starting at the bottom

The Comfort Zone

The Uncomfortable Journey

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Lesson 3: go with the survivors

Unwilling to

answer

Don't know

£5m - £50m

£2m - £4.99m

£500,000 - £1.99m

£250,000 -

£499,999

£100,000 -

£249,999

£60,000 - £99,999

£30,000 - £59,999

£10,000 - £29,999

Less than

£10,000

turnbanding

100

80

60

40

20

0

turnbanding

Turnover Band

Nu

mb

er

of

SM

Es

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VALUE REALISORSReady for payback

ACQUIRERSHungry to buy

VALUE CREATORSSet for growth

VALUE GROWERSMaking the journey

UNSOPHISTICATEDHobbyists, Clubs

Maturity

High

Medium

Low

Small Medium Large

Size

Climbing the stairway to heaven

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Stand – a Scottish success story

• Balanced Team• Clear commercial vision• Ambition to build value• Award winning creative• Solid client base

• Don’t need cash to grow• They wanted mentoring