The Entrepreneurial Dimensionof Cultural and Creative Industries

Rene Kooyman

OASIS 500 Conference Amman

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.’

Delineation of the Cultural

&

Creative sector

(KEA 2005)

Contribution Cultural/Creative sector

• UNCTAD: Creative Economy Report 2010

• EU: See EDCCI Page 102

The new SME definition

Three criteria:

• Staff headcount

• Annual turnover

or:

• Balance sheet turnover

• ????

Size of EnterprisesBy sector across CCIs

eurokleis 2009

EDCCI: Page 64

CCIs : EU Top

Regions

LQ is an indicator of CCI employment relative to the total employment of the region, where LQ>1 indicatesan over-representation of CCI employment

Source: European Cluster Observatory

See EDCCI Page 102

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

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

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

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

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

Entrepreneurship indicators

OECD, Measuring entrepreneurship, 2010

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

CulturalBusiness Modelling

Utrecht Centraal Museum

• Restaurant• Garden• Shop• New Media• Rietveld Schroderhouse• Dick Bruna house

Het Huis Utrecht

Budget 400.000Subsidie 100.000Market 300.000

Office space/flexTheateraccomodationsRestaurant/catering

Nicole Driessens / Ivo van den BaarRotterdamDESIGNPRODUCTIONS ON DEMAND

Rene Kooyman Dec 2014

rkooyman@rkooyman.comwww.rkooyman.com

That’sthe way

it’s done!

The Entrepreneurial Dimensionof Cultural and Creative Industries

the Middle East perspective