Entrepreneuril Dimension Cultural and Creative Industries. Master Class sept 2013.

1. The entrepreneurial dimension
of cultural and creative industries
especially SMEs
Rene Kooyman
15 January 2010
Specific
Characteristics
of
CCIs

2. It’s me !
• Electrician; high/low voltage (HTS Oudenoord)
• Utrecht Conservatory of Music (HKU)
• Master (Drs) Social Sciences: UU RUG
• Regional Development Office Sligo , Ireland
• Head R&D Nat Institute Art Education (LOKV)
• European Commission Luxembourg (IPR)
• DEA (post doc) Economy University Geneva
• Study Counsellor Institute of Finance and
Management University Geneva
• Master Urban Area Development: HU
• Lecturer HKU (HTS Oudenoord)

3. 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 integration
• Reinforcing self-confidence of individuals and communities

4. 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.’

5. UNCTAD Creative Economy
report 2008

6. Contribution Cultural/Creative sector
• UNCTAD: Creative Economy Report 2010
• EU: See EDCCI Page 102

7. The new SME definition
Three criteria:
• Staff headcount
• Annual turnover
or:
• Balance sheet
turnover
• ????

8. Size of Enterprises
By sector across CCIs
eurokleis 2009
EDCCI: Page 64

9. CCIs : EU
Top
Regions
LQ is an indicator of CCI
employment relative to
the total employment of
the region, where LQ>1
indicates
an over-representation of
CCI employment
Source: European Cluster
Observatory
See EDCCI Page 102

10. 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

11. From the entrepreneur’s perspective
From the SMEs perspective, three markets:
• The ‘arts’ field: pure creative work
• Arts related markets:
teaching, production, administration, art management
• Non-arts markets, in order to generate additional income
Personal characteristics and differences:
• Entrepreneurial success
• Professional achievement
• Art creation
• Professional career
Q: What’s an entrepreneur ???

12. 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

13. 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

14. 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

15. 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

16. Entrepreneurship indicators
OECD, Measuring entrepreneurship, 2008

17. Cultural Business Modelling
Autonomous
sources of income
Product/Market
Combinations
Real Estate
Merchandising
External sources
Sponsoring
Matching
Co-financing
Creation of local
funds
Contributions of
common interest
Mecenas /
Business Angels
Governmental
facilities
Subsidies

18. 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

19. 26 March 2010 rene kooyman
2 . The specific size and characteristics of the CCIs
should be recognized and catered for,
especially with regards to policy support,
support structures and initiatives
1. Any policy aiming at
innovation and economic support
to foster and develop innovative power
must integrate the culture and creative industries,
as a sector cutting across economic branches,
into its economic policy concepts
Recommandations

20. 26 March 2010 rene kooyman
3. The specific character of the 'missing middle'
should be accounted for.
Policy support should make a distinction
between the large- and the very-small initiatives.
The small-size enterprises should be targeted
from the micro-SME perspective
4. A special category
of micro-initiatives/nano-enterprises
should be introduced
into the EU policy framework

21. 26 March 2010 rene kooyman
5. It should be possible
to exempt micro-entities or nano-enterprises
from the accounting obligations
to draw up annual accounts
6 . The European Commission should
define the minimum restrictions
regarding the minimum standard to which
Cultural and Creative nano-enterprises
should report their activities.
Member States should remain free to add further
obligations.

22. 26 March 2010 rene kooyman
7. Establish a Pan-European
Creative IPR advice and Intelligence Service that can
stimulate the fundamental reform of the existing IPR
Regulation within the European Community
8. The EU should avoid over‐regulating the digital
industries and should favour voluntary self‐regulation
wherever possible
9. Improved co‐ordination of IP policies and realistic,
applicable IP enforcement is an issue which the EU
needs to address and should play a leading role
II Environmental factors

23. 26 March 2010 rene kooyman
10. Establish a coordinated investment map
in the EU - to map the current investment
landscape covering the 27 EU Countries
11. Launch a pan-European Creative Investment Fund – a
dedicated equity fund for growth-orientated Creative
businesses that operates across a European-wide portfolio
of Creative businesses. This pan-European Creative
Investment Fund should back-up national financial
institutions involved in CCI Credit Schemes
12. Initiate and support initiatives to create 'soft loans' ,
backed-up by the national governments, stimulating the CCIs,
combined with entrepreneurial guidance and support

24. 26 March 2010 rene kooyman
13. Create national credit institutes, whose mission is:
• to contribute to the development of the CCIs through
facilitating the access to bank financing
• enlarge the domestic supply of venture capital
• take initiatives to develop national venture funds
• improve venture market regulation
14. Stimulate a European Creative Investment League –
developing a network of interested business angels and a
portfolio of creative portfolio investment schemes
15. Support the creation and implementation of a low Vat
Rate and other tax incentives to labour intensive
creative services and products

25. 26 March 2010 rene kooyman
16. Use an entrepreneurial life cycle model
to understand the development and needs
for support for cultural and creative workers.
17. Focused on five core qualities:
o Vision Development
o Positioning in the market
o Return on Creativity competences
o Communication skills
o Networking and teamwork
Put these core qualities in the centre of the supportive
systems.
III Cultural and creative entrepreneurship

26. 26 March 2010 rene kooyman
18. Initiate and support initiatives
aimed at raising the profile
of career paths and commercial
opportunities in the Cultural and Creative Industries
19. Stage a Creative Entrepreneurship Awards
Programme - connecting the existing Creative business
initiatives in the 27 countries
20. Initiate and support a system of comparison of
educational grades and requirements in the CCIs at
EU level, and recognition of each other's degrees and
diplomas.

27. 26 March 2010 rene kooyman
21. Start an Action Program
supporting CC entrepreneurship
in the CCIs covering the EU countries.
It should comprise:
1. A Knowledge Centre on the EU level (data-collection
and knowledge dissemination)
2. An EU Campaign for educational and training
institutes, concentrated on entrepreneurial skills
3. Supportive strategies on Regional and National level
4. An EU-wide Award Program
IV Supporting entrepreneurship

28. 26 March 2010 rene kooyman
22. Organize and initiate a Support Structure,
through partnership initiatives and via
A Creative Entrepreneurialism Portal –
as a web-portal and face-to-face delivery mechanism.
23. Promote diminishing the financial start-up costs for
CC SMEs
24. Launch a Creative Entrepreneurialism campaign as
an education and economic development policy –
targeting schools, universities and early stage creative
businesses

29. 26 March 2010 rene kooyman
25. Support and promote
regional and national
coordinating bodies and
knowledge centres for the CCIs
26. Develop cross-institutional cooperation between
Creative education institutions and programmes:
A European Creative Academy Network and delivery
vehicle
27. Support the educational attention and quality
requirements in Higher Professional Training and
Academic Institutions

30. 26 March 2010 rene kooyman
28. Establish a Creative Economy
Learning and Skills Council
as the lead policy development body and broker
between industry and education
Harmonise Creative qualifications
29. Support the educational
attention and the development
of entrepreneurial models
and curricula
specifically catered for the CCIs.

31. 26 March 2010 rene kooyman
29. Career Development Support
at the Educational Institutions and Universities
Introduce an EU Creative Student Exchange Programme.
30. Establish an EU
Creative Economy Learning and Skills Network;
a policy development and broker between industry and
education
31. Launch a Creative Entrepreneurialism campaign
targeting schools, universities and early stage creative
businesses

32. 26 March 2010 rene kooyman
32. Initiate and promote widely available
access to ICT in production, marketing
and distribution of Creative Goods,
as part of the CC Entrepreneurialism Portal
33. Initiate a European network of support structures, a policy
development body and broker between industry and
education, driving creativity and learning agendas
34. Launch an EU creativity campaign in target sectors,
expressed at local, national and international trade shows
V Focussing on CCI SMEs

33. 26 March 2010 rene kooyman
35. Support the development of
regional infrastructures. Impulse strategies
Towards regional initiatives and support structures.
36. Each member states can develop its own approach of
the size and profile of regions. In order to succeed a
regional infrastructure should cover:
• institutes of higher art education institutes
• a governmental programme on the CCIs, including self
employed individuals and nano firms
• a significant number of CC SMEs
• a general SME service and training institute

34. 26 March 2010 rene kooyman
37. Develop a Creative Cluster
Partnership Programme
that supports knowledge exchange initiatives through the
Regions, investing in partner initiatives and brokering
relationships between businesses
38. Develop a European Creative Cluster Map, that
showcases strengths and launches the proposition of the
different Regions as a Connected Global Creative Cluster
39. The EU installs a Annual Art Factory Competition:
The Art Factory Prize of the Year

35. 26 March 2010 rene kooyman
40. Initiate and develop a
Creative Industries Research Programme
that supports knowledge exchange initiatives
between the CCIs and University and
Industrial Research Centres
41. Develop, initiate and support R&D Programs
that cater for the specific characteristics of the CCIs.
Promote flexible, fast-track R&D programming
that mirror the speed and flexibility of the CCIs.

36. 26 March 2010 rene kooyman
42. These Recommendations should –
after discussion in open coordination
and additional amendment –
be put into practice
by means of an EU Working Document,
leading to an EU Action Program for the CCIs
• General remarks ??
• Recommendations missing ???

37. CCIS: URBAN CONTEXT

38. Europe in times of crisis
Significant developments:
• Urbanisation
• From Industry to Knowledge
• Absence of growth
• ‘Old School’ no longer applies: innovation
• Small and Medium Enterprises (SMEs) of
strategic value
• The economical force of the Cultural and
Creative Industries (CCIs)

39. CCIs AS KEY STRATEGIC FACTOR
• CCIs drivers of economical growth (UNCTAD)
• Drivers of innovation: driving innovative
processes into realisation
• CCIs at the core of cultural and industrial
networks
• CCIs and Technological change/digitisation
two‐way process
• CCIs spill‐over: Corporate Esthetics, Identity and
Branding
• Cultural and Creative Content as a relative
autonomous, independent economical factor

40. The Urban Dimension
• Territorial approach: zoning
• Diversified cultural environments (Jacobs)
• Social integration/identification
(‘belonging’) and distinction (Bourdieu/Florida)
• Integrated approach:
– Physical: bricks and mortar
– Social
– Infrastructure: networking
• Conceptualisation /re-evaluation

41. City Policy & Planning Paradigm
• Developed for and by the industrial economy
• Separation of 'working' and 'living' through
zoning
• Powers are restrictive, not permissive: 'you
can’t', rather than 'you can'
• Professionalized: ‘planner knows best'
• City is struggling under its own weight, unable
to adapt quickly enough to changing global,
social economic environment
• Verbal, rational/analytical, more than
‘understanding’

42. Entrepreneurial behaviour:
The Creation of Economic, Social and Cultural
Value
 cultural fabric of the Creative Industry thrives on
numerous small initiatives
 high share of freelancers and very small
companies
 multiple job‐holdings; combined sources of
income
 new type of employer is emerging; the
‘entrepreneurial individual’
 no longer fits into typical patterns of full-time
professions (EU job potential)

43. Spatial components: metropolis and decay
• From
Industry to
Knowledge

44. Major Stakeholders in Urban Development
44
Community
Stakeholders
Cultural
Organizations
Community
Activist/
Volunteers
Resident
Immigrant
Youth
clubs/groups
Immigrant
services
Community
Media
Chamber of
Commerce
Businesses
Municipality

45. Urbanisation: the values of City-life
• Cultural and Economical Capital
• Cultural Class
• Identity and Branding
• Demographics

46. EU CURE Project
• Creative Urban Renewal in Europe (CURE)
• Aims to facilitate triggered growth of the
creative economy in decayed urban areas in
medium-sized cities in Northwest-Europe
• This will be done by developing and testing
the innovative transnational model ‘Creative
Zone Innovator’ to plan and to develop
creative zones.
• The project brings together 7 project
partners in Germany, Belgium, France, the
Netherlands and the UK.

47. Creative Zone Innovator
• Creative Zone Innovator: integrated
approach to urban, economic, cultural,
social and entrepreneurial development
• ABC: Area , Building, Creative entrepreneur
• Four Dimensions:
a. Learning Lab: learning environment
b. Cultural Value Chain: networked alliances
c. Flow of diversity: continuous new impulses
d. Cultural Business Modeling

48. Creative
Zone
Indicators

49. How is it done: radical redefinition
Edinburgh:
• Ice Store
• CCI Outlet
• Job
creation
rainingRevitalisation of a shopping-mall in decline

50. Redefinition of cultural identity
Brugge (Belgium):
Vocational
professions
as cultural heritage

51. Hagen DE
Textile factory:
1822 - 1996

52. Methods and procedures
• Radically re-interpret the area
• Define identity and profile
• Spread the word; Corporate
Communication
• Build support networks
• Take time
• More Dash than Cash
• Create a financial base

53. Investing in the Creative Ecosystem
The creative ecosystem: arts and culture, nightlife, the
music scene, restaurants, affordable spaces, lively
neighbourhoods, spirituality, density, public spaces etc.
1. Strengthen creative assets and encourage collaboration
2. Continue revitalizing downtown areas as nodes of
creativity
3. Develop an infrastructure that will improve the quality of
life for residents and attract the creative class (hiking and
cycling trails, festivals, development of cultural assets,
ways to celebrate the waterfront etc. )

54. Creative entrepreneurs’ perspective
• Social capital: resources based on group
membership, relationships, networks of
influence and support; clusters
• Economic capital: command over economic
resources (cash, assets); based on
entrepreneurial capabilities and support
• Cultural capital: forms of knowledge; skills;
education and language skills
• The urban perspective: choose your
position in the urban nomad chain ; use
support functions

55. That’s
the way
it’s done!
Rene Kooyman August 2013
http://cci.hku.nl/ http://cure-web.eu
www.rkooyman.com
The Entrepreneurial Dimension
of Cultural and Creative Industries