100115 eace CCI Determinants
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Transcript of 100115 eace CCI Determinants
THE ENTREPRENEURIAL DIMENSIONOF CULTURAL AND CREATIVE INDUSTRIES
ESPECIALLY SMEs
Rene Kooyman15 January 2010
II:
Determinants
Of Entrepreneurship
Rene Kooyman: Determinants Of Entrepreneurship
THE CULTURAL AND CREATIVE INDUSTRIES
• The core arts placed outside the industrial sectors ?• Only ‘potential copywrited works’ count ?
(‘One-offs ‘ and prototypes: design, architects, etc)• Discipline based ? (music, performances)• Individual artists are not entrepreneurs?• CCIs: diversity , not a homogonous group
From the Entrepreneurial point of view four main categories:• Creative service providers - design consultancies, architecture• Creative content producers - fashion designers, film, games• Creative experience providers - performers, opera, ballet, galleries,
museums; • Creative originals producers - crafts people, visual artists, designer-
makers, composers
Rene Kooyman: Determinants Of Entrepreneurship
THE POSITION OF SMEs
The missing middle:• A few, large, international conglomerates• A lot, very small, entrepreneurs• Operating within networks of ‘intermediaries’
The large ones (publishers, film producers, record comp):• Repreducables, new communication technologies, mass consumer
markets, responsible for distribution, marketing, motivated by economic growth and competition
SMEs:• Producers of the creative originals, not so much primary motivated
by growth
UNCTAD Creative Economy Report 2008
Rene Kooyman: Determinants Of Entrepreneurship
ENTREPRENEURIAL DETERMINING FACTORS
CCIs Drivers of success:
• Technology
• Demand
• Design
• Education and skills
• Diversity
• Public sector
• Intellectual Property
• Clustering
Rene Kooyman: Determinants Of Entrepreneurship
INDICATORS AND DETERMINANTS
• Entrepreneurial activities based upon opportunities, skilled people and resources
• Affected by two dominant factors:
• regulatory framework
• and entrepreneurial cultureOECD, Measuring entrepreneurship, 2008
Rene Kooyman: Determinants Of Entrepreneurship
Determinants of entrepreneurship
o Capital and Access to finance
o Technology and RD
o Entrepreneurial capabilities
o Market conditions
o Regulatory framework
o Culture
Start-ups, seed funds, stock markets
Innovation
Human and social capital
Public involvement, competition
All regulations and public rules
Entrepreneur’s behaviour, attitudes
Rene Kooyman: Determinants Of Entrepreneurship
ACCESS TO FINANCE
CCIs hold a different position towards financials:
• Non-conventional employment;
full-time workers receiving regular pay are a minority• No level-playing field; small business face banks that become more
risk-averse (financial crisis)• The ‘nobody knows’ effect of the CCIs• Access to debt financing: low tendency and ability of CC
entrepreneurs of making full use of available finance, advice and expertise
• Regular financial institutions often hesitate and offer little development assistance or expertise with regards to the CCIs
Rene Kooyman: Determinants Of Entrepreneurship
ACCESS TO R&D AND TECHNOLOGY
• Digitisation changes all aspects of the CCIs:concept creation, production, distribution, retail
• Technology as a driver: new services, distribution channels, business models anddriving the emergence of significant new sectors
• Digitisation and IP: open source and collaborative platform development
R&D:• Much activities in the CCIs involve R&D, yet not described as such• University/Industry interface geared towards large firms with lasting
relationship networks• Given their large premises, staff, technical resources, skills these
dominant enterprises set the research agenda
Rene Kooyman: Determinants Of Entrepreneurship
ENTREPRENEURIAL CAPABILITIES
• Weaknesses in business skills: CC entrepreneurs
lack the skills for business proposals attracting
external investors• Lack of entrepreneurial skills: professional educational institutes lack
the affinity and attention for entrepreneurial aspects• Traditional Business Education does not fit:
• many self-employed and independent SMEs do not wish to grow• the business plan is the wrong metaphor for entrepreneurship• Is weakens on the entrepreneurship model being valued in a non-
business context (public services, non-profit, governmental)• Undervalues the importance of networks: ‘know-who’• The culture of business schools is derived from corporate models
Rene Kooyman: Determinants Of Entrepreneurship
ENTREPRENEURIAL CULTURE
Personal characteristics and sector differences:four different sets of ideals:
• Entrepreneurial Success: gaming and media• Professional Achievement: Architecture,
Sound Technician, Camera Man, Photographer• Art Creation oriented: Art professions, Design, Film, Architecture,
Visual Arts• Career oriented: IT, Advertising, Sales Professions within the CCIs
Culture and size:• Micro and start-up businesses: Artisan, Creative Partnership, Solo• Small businesses: Business Partners, Licensing Partners• Medium sized: Business Partners, Entrepreneur/Investor relations
Rene Kooyman: Determinants Of Entrepreneurship
MARKET CONDITIONS
Markets volatile and unpredictable, demandwill increase with exposure, business strategies that are embryonic, provisional, highly responsive; 'intuitive' and 'emotional' knowledge as much asstandard market research, unpredictable demand ‘nobody knows’
Competition and anti-trust laws: • Competition and entrepreneurship have links both ways:
• Entrepreneurship is contribution to competition• Competition is an important driver of entrepreneurship
CCIs specific position:• Excluded from international trade agreements• National countries autonomy to support CCIs• Improving market dynamics and access to markets by minimizing
public involvement (governmental activities and regulation)
Rene Kooyman: Determinants Of Entrepreneurship
REGULATORY FRAMEWORK
CCIs face:
• Administrative Burdens (entry and growth)
• Costs of starting up an enterprise
• Bankruptcy Legislation
• Safety, health, environment and product regulation
• Labour Market Regulation
• Social and Health Security
• Income Taxes
• Business Taxes and Fiscal Incentives
• Wealth and Bequest Taxation
Rene Kooyman: Determinants Of Entrepreneurship
QUESTIONS / REMARKS / DEBATES
• Which determinants are dominant ?• What is their importance?• De you recognize the image sketched here ?
THE ENTREPRENEURIAL DIMENSIONOF CULTURAL AND CREATIVE INDUSTRIES
ESPECIALLY SMEs
Rene Kooyman15 January 2010
II:
Determinants
Of Entrepreneurship