THE ENTREPRENEURIAL DIMENSIONOF CULTURAL AND CREATIVE INDUSTRIES

ESPECIALLY SMEs

Rene Kooyman4 February 2010

Creative Industries

as key strategic sector

4 feb 2010 rene kooyman

THE 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, design and fashion.’

The entrepreneurial dimension:• owe one's own business enterprise; value creation• innovative practices, and/or assuming entrepreneurial risk• new products; forms of organization; new markets; new production methods; new sources of supplies and materials

4 feb 2010 rene kooyman

THE NEW SME DEFINITION

Three criteria:

• Staff headcount• Annual turnover

Or:• Balance sheet

turnover

4 feb 2010 rene kooyman

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

4 feb 2010 rene kooyman

Staff headcount - turnover

o Very small (< 2 milj EUR)

o SMEs (2 – 10 m EUR)

o Large enterprises:

2006: Cultural Industries BRD

o 763.000 taxable employees

Fesel/Söndermann BRD 2009

97% nr of enterprises 27 % turnover

3 % enterprises 32 % turnover

< 1 % nr enterprises 40 % turnover

o 210.000 Free-lance workers

not registered

Creative industries:

4 feb 2010 rene kooyman

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

4 feb 2010 rene kooyman

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

4 feb 2010 rene kooyman

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’

• No longer fits into previously typical patterns of full-time professions

• Heterogeneity of human resources categories; higher professional training, vernacular backgrounds, craft industry, any other category

4 feb 2010 rene kooyman

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

• Experience goods; production and consumption ‘on the spot’

• Product life-cycles are short

4 feb 2010 rene kooyman

DIFFERENCES IN PRODUCTION

• Routinisation and replacing human skills

with capital goods impossible or inefficient

• Outsourcing hardly possible

• An abundant supply of established practitioners

and new entrants, supplemented by the presence of semi-professionals and amateurs

• Products developed without a common understanding of quality criteria

• Unique instruments and procedures regarding quality control (exhibitions, prices, rewards, competitions, peer-reviews)

4 feb 2010 rene kooyman

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

THE ENTREPRENEURIAL DIMENSIONOF CULTURAL AND CREATIVE INDUSTRIES

ESPECIALLY SMEs

Rene Kooyman4 February 2010

Creative Industries

as key strategic sector

rkooyman@rkooyman.com