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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