Skills Gaps and Company Development...

Skills Gaps and

Company Development

Issues in the Digital

Content Sector

INTERREG IVA Region

Northern Ireland (excluding Belfast and Greater

Belfast), western seaboard of Scotland and the six Republic of Ireland border counties

Skills Gaps and Company Development Issues

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© 2015 Honeycomb partnership comprised of Ulster University, Creative Skillset, Dundalk Institute of

Technology and University of the West of Scotland.

ISBN: 978-0-9933177-0-5

Written by: Dr Douglas Nanka-Bruce, Dundalk Institute of Technology, Dan Wilks, Creative Skillset, Dr Aisling

Murtagh, School of Media, Film and Journalism, Ulster University and Dr Colm Murphy, School of Media, Film

and Journalism, Ulster University.

The views and opinions expressed in this report do not necessarily reflect those of the European Commission or the

Special EU Programmes Body.


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Contents

EXECUTIVE SUMMARY ........................................................................................................ 3

1. INTRODUCTION.............................................................................................................. 5

1.1 Report overview .................................................................................................................................. 5

1.2 The digital content sector survey .................................................................................................... 6

2. SKILLS GAPS AND TRAINING NEEDS .............................................................................. 7

2.1 Overall skills gaps and level of training needed .......................................................................... 7

2.2 Sales and marketing skills...................................................................................................................10

2.3 Business skills ...........................................................................................................................................11

2.4 Software packages ..............................................................................................................................12

2.5 Finance skills ...........................................................................................................................................13

2.6 Other skills issues ...................................................................................................................................14

3. COMPANY DEVELOPMENT............................................................................................ 16

3.1 Assistance ................................................................................................................................................16

3.1.1 Nature of assistance received to help business growth .......................................................17

3.1.2 Interest in events and support programmes ............................................................................21

3.2 Challenges to growth ...........................................................................................................................23

3.2.1 Infrastructural impediments to growth ......................................................................................24

3.3 Networking and collaboration ..........................................................................................................27

3.3.1 Membership and affiliation to networks and trade associations ......................................27

3.3.2 Services or supports hoped to achieve through networking ...............................................28

3.3.3 Existing collaborations within the sub-sectors .........................................................................31

3.3.4 Potential collaborations within digital content sub sectors ..................................................34

3.3.5 Work in niche sectors outside the creative industries ...........................................................34

4. CONCLUSION ................................................................................................................ 37

4.1 Key issues around skills gaps and training needs ........................................................................37

4.1.1 Republic of Ireland.........................................................................................................................37

4.1.2 Northern Ireland .............................................................................................................................37

4.1.3 Western Scotland ...........................................................................................................................37

4.2 Company development .......................................................................................................................38

4.2.1 Infrastructure issues, key challenges and supports ................................................................38

4.2.2 Networking and collaboration....................................................................................................38

APPENDIX 1: THE HONEYCOMB CREATIVE WORKS TEAM .............................................. 40


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EXECUTIVE SUMMARY Understanding skills issues and company development gaps, as well as developing measures to help address

these issues, are important steps in assisting the digital content sector to reach its growth potential. This report

presents analysis of a survey of the digital content sector of creative industries, designed to understand key

skills and company development issues in the Honeycomb eligible areas of Northern Ireland, the Republic of

Ireland and Scotland.

The Honeycomb survey identified a range of skills gaps across the eligible area. The greatest proportion of

Republic of Ireland (RoI) respondents, close to two thirds (63%), identified business skills as a skills gap. The

top two specific areas of business skills identified as lacking were national and international networking

(75%), as well as identifying opportunities (66%). Over half also identified developing business models,

commercial acumen and accessing international markets as business skills needing improvement. The next most

commonly cited skills gap, that almost three fifths (58%) of RoI companies identified, was sales and marketing

skills, with pitching (72%) and negotiation (63%) the top two specific areas identified as gaps. Over half also

identified e-marketing, international markets and marketing through social media as sales and marketing skills

needing improvement.

The greatest proportion of Northern Ireland (NI) respondents, almost half (49%), identified business skills as a

skills gap. The two top areas were the same as in RoI, national and international networking (65%), as well as

identifying opportunities (68%). The next skills gap the most respondents identified was craft or technical skills

(43%). In terms of actual skills, a wide range were cited. As a result, providing funding support for training

directly to industry could be a more effective option to address this skills gap, allowing companies to identify

training that meets their specific skills needs.

The top skills gap identified in Scotland was sales and marketing skills, that almost two fifths (38%) of

respondents identified as an issue. The specific area of sales and marketing skills that most respondents

identified was marketing through social media (74%), and over half also identified international markets,

pitching and e-marketing as specific sales and marketing skills gaps. The next skills gap the most respondents

identified were business skills (35%). National and international networking were identified as business skills in

need of improvement by 82% of these respondents.

Of the six areas of skills gaps assessed in the survey, five out of the six were classed as significant in NI and

four out of six in Scotland. In RoI, two areas of skill gap were classed as severe and four as significant,

signalling that skills development is most pressing in this region, comparatively speaking based on the survey

results. Overall, in terms of the level of training reportedly required, beginner level training in any area was

not identified as a priority. Intermediate and advanced training were identified as more significant needs.


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Overall funding was a central issue facing digital content company growth and development. Greater access

to funding and workshops to assist navigation of the funding process and gain information would go some

way to overcoming this challenge. Funding was however a more significant issue in NI and RoI than Scotland.

An ability to innovate and respond to customer and market needs was also a challenge to business growth

identified as significant. Apart from funding workshops, a high level of interest was also found in trade events

(75%) and networking events (85%). These results were echoed across the eligible area.

The biggest overall infrastructural issue identified was with broadband capacity. This was however of lower

concern in NI. In Rol, almost half of respondents agreed broadband was an issue and over two thirds of the

companies surveyed in Scotland agreed it was.

Membership of networks and trade associations was generally found to be low. These results indicate that the

digital content sector could benefit from greater support for membership of trade organisations and

networking. Companies were particularly interested in networking to assist them access the latest technological

developments and product or service development.

Work in health and sport was not very common and companies did not display a significant interest in

working in these sectors. Current work and interest in work was highest in education, where around a quarter

of respondents had worked or had an interest in working. Tourism was also a significant other area of interest.

Interest in collaboration within creative industries was higher than with other sectors. Over half of all

companies identified potential for collaboration with the TV, film, interactive media and facilities for film and

TV sub sectors, and in specific areas of work such as joint marketing, content creation, product development

and research and development.


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1. INTRODUCTION Honeycomb - Creative Works is a £3.58 million programme targeted at the digital content sector across the

INTERREG IVA region of Northern Ireland, the six border counties of the Republic of Ireland and the western

seaboard of Scotland. The programme is being delivered by a partnership led by the Ulster University and

comprising Dundalk Institute of Technology, Creative Skillset and the University of the West of Scotland.

Honeycomb addresses the economic, educational, social and cultural needs of the sector by focusing on SMEs,

organisations and individuals in five digital content sub sectors: film and broadcast; animation; computer

gaming; interactive media and music technologies. The project is part financed by the European Union’s

INTERREG IVA cross-border programme managed by the Special EU Programmes Body.

The Honeycomb programme is structured around four themes:

1. Intelligence gathering aims to monitor developments in the digital content industry sub sectors.

Under this theme a range of studies are being produced which can inform future policy and ensure the

programme is updated in light of new industry requirements.

2. Developing networks of scale aims to improve industry connectedness through its comprehensive

networking programme. This theme will increase the sector’s capacity and establish greater links

between digital content SMEs, freelancers and start-ups across the three regions.

3. Skills development aims to improve skill levels, addressing the shortfall in sector specific training for

the digital content sector.

4. Enterprise development and project finance aims to develop a seed funding programme and

investment fund for early stage digital content projects developed by creative enterprises.

This report forms part of the intelligence gathering element of the programme. It is one of a series of skills

gap reports produced by Honeycomb’s research group.

1.1 Repor t overview

Understanding skills gaps and company development issues is an important step in assisting the digital content

sector to reach its growth potential. This report presents analysis of a 2014 survey of the digital content sector

of creative industries, designed to understand these issues in the Honeycomb eligible areas of Northern

Ireland, the Republic of Ireland and Scotland. When Northern Ireland (NI), Republic of Ireland (RoI) and

Scotland are referred to in this report this refers to the Honeycomb eligible areas in those nations and not the

entire nations. In NI this excludes the Belfast and Greater Belfast areas, is comprised of the six border

counties in RoI and covers the western seaboard of Scotland. The report outlines key skills gaps in each

eligible area and the level at which training is reportedly needed, as identified in the Honeycomb survey. A

number of skills areas are also assessed at a deeper level to understand the specific skills needs in more

detail. The level of government assistance received, the nature of this assistance and what kinds of supports


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would be of use in future are also analysed. Levels of networking are assessed, i n addition to what benefits

companies would like to gain from being involved in networks and trade organisations.

1.2 The digital content sector survey

The survey was carried out by Ashbrook Research and Consultancy on behalf of the Honeycomb Creative

Works partnership. Telephone interviews were conducted in February 2014 with 219 companies across the

regions, grouped into five digital content sub sectors: film and broadcast; interactive media; games; music

technologies and animation. Of the five sub sectors, 84 companies (38%) were in the film and broadcast

sector, while 95 (43%) were from interactive media. Nine companies (4%) were engaged in music technology.

Just three and two companies respectively, representing 1% of the sample, had either animation or games as

their principal business activity. Particularly in animation, the figure, although very low is not surprising as

animation professionals work across film and broadcast, games and interactive media. The low incidence of

companies in the games sub sector in the eligible areas however requires further investigation with regards to

their absence and barriers to entry. In addition, 26 (12%) companies indicated their main business activity

was outside of any of the listed sub sectors. Also of note is the young age and small size of the companies

surveyed. Overall, most (61%) were between 1 and 10 years in business. The remainder ranged in age from

11 to 65 years (26% were between 11 and 20, 10% between 21 and 30, 2% between 31 and 40 and 1%

between 41 and 65 years in business). Most (73%) had between 1 and 5 full-time employees, while 16%

had no employees. The remainder had between 6 and 150 full-time employees (8% had between 6 and 15,

3% between 16 and 30 and 1% between 100 and 150). Freelancing was more common than part-time

employment - 34% had part-time employees and 22% had between 1 and 10 employed part-time, while

45% used freelancer workers and 42% used between 1 and 10 freelancers. Turnover was reported as up to

£150,000 for 67% (21% between £51,000 and £150,000 and 46% up to £50,000) of companies in NI and

Scotland. In RoI, 82% of companies reported an annual turnover of up to €150,000 (6% between €51,000

and €150,000 and 76% up to €50,000).


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2. SKILLS GAPS AND TRAINING NEEDS This section presents the Honeycomb survey analysis focusing on skills gaps and training needs. It identifies

key differences between the eligible areas and details the survey results relating to the level at which skills

training is most important. The survey findings assessing the need for particular kinds of skills in the areas of

sales and marketing, business, software and finance are also presented in detail.

2.1 Overall skills gaps and level of training needed

Honeycomb asked survey respondents about a range of skills gaps in their workforce. Table 1 depicts the

percentage of respondents that agreed these areas were skills gaps and is colour coded based on the

severity of the perceived skills gap. Red denotes that the situation may indicate a severe concern for action

and may be regarded as a critical problem requiring attention. Yellow denotes that the situation may indicate

a significant concern for action, that a problem exists and although not severe, may also require intervention.

Green denotes the situation may indicate a moderate concern for action, and although not optimal, may not

require the same intervention.

Business skills and sales and marketing skills were among the top three skills gaps across the three regions. The

top three skills gaps identified in NI were business skills, craft or technical skills and sales and marketing skills.

The top three skills gaps identified in RoI were business skills, sales and marketing skills and craft or technical

skills. In Scotland they were sales and marketing skills, business skills and skills in the use of software

packages.

Key regional issues

Skills gaps around understanding intellectual property (IP) rights were significantly greater in RoI than

in Scotland or NI.

Skills gaps around sales and marketing and business were significantly higher in RoI than in NI and

Scotland.

Gaps in finance skills were found to be significantly lower in Scotland than in NI and RoI.


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Table 1: Skills gaps in workforce or business across the Honeycomb eligible area

All

companies

Film and

Broadcast

Interactive

Media

NI RoI Scotland

Understanding IP

rights

30% 33% 27% 27% 40% 17%

Sales and

marketing skills

47% 46% 44% 40% 58% 38%

Business skills 51% 45% 54% 49% 63% 35%

Skills in using

software

packages

33% 31% 32% 33% 33% 32%

Finance skills 32% 29% 34% 37% 40% 16%

Craft or technical

skills

41% 50% 34% 43% 46% 30%

Leadership and

management skills

14% 12% 15% 16% 15% 11%

Creative talent 19% 14% 20% 16% 28% 10%

Key Severe concern

50% - 100%

Significant

concern

30% - 49%

Moderate concern

1% - 29%

Base: All respondents (219)

Honeycomb also sought to understand at what level skills needed improvement. Table 2 summarises the survey

findings across different areas of skill, with key findings highlighted in amber. Advanced level training was

identified as significantly important in NI when developing skills in the areas of sales and marketing, using

software packages, finance, craft and technical. In RoI, developing skills in using software packages and craft

or technical skills were identified as being significantly important at advanced levels and understanding IP

rights at all levels. In Scotland, sales and marketing and business skills training were found to be significantly

important at intermediate levels. Skills in using software packages were identified as significantly important

at intermediate and advanced levels. Craft and technical skills were also most important at advanced levels.


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Table 2: Level skills training needed

NI RoI Scotland

Understanding IP Rights1 Beginner N/A 8% N/A

Intermediate N/A 24% N/A

Advanced N/A 22% N/A

All levels N/A 54% N/A

Sales and marketing skills2 Beginner 0% 6% 4%

Intermediate 24% 33% 46%

Advanced 52% 37% 29%

All levels 32% 37% 25%

Business skills3 Beginner 3% 2% 9%




Skills in using software packages4 Beginner 5% 3% 5%




Finance skills5 Beginner 0% 5% N/A

Intermediate 17% 35% N/A

Advanced 65% 38% N/A

All levels 26% 32% N/A

Craft or technical skills6 Beginner 0% 0% 0%




Notes: Results 40% and above shaded in amber. Results deemed not applicable (N/A) when

response rate was less than 20 respondents. Leadership and management response rates below

20 respondents at regional levels hence results are not listed. Base: 165 respondents,

2103

respondents, 3112 respondents,

472 respondents,

570 respondents,

689 respondents.


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Key regional findings

Intermediate tends to be identified as the main level for improvement, and more commonly in Scotland

than in NI or RoI.

In NI, sales and marketing skills seem to be particularly lacking at advanced levels.

Skills in using software packages seem to be lacking at advanced level across all areas.

Craft and technical skills seem to be lacking at advanced level across all areas.

Advanced tends to be identified as the main level for improvement in NI.

The Honeycomb survey also assessed if job vacancies were hard to fill. Overall vacancies were not difficult

to fill. Hard to fill vacancies were less prevalent in RoI than NI or Scotland. Around one sixth in RoI, a quarter

in NI and over a quarter in Scotland said vacancies were hard to fill (see Table 3). Vacancies where there

was difficulty were most commonly in the following occupations: editor; production manager; sales executive

and programmer.

Table 3: Vacancies proving hard to fill

NI RoI Scotland

Yes 25% 17% 29%

No 73% 83% 71%

Don't know 2% 0% 0%

Base: All respondents (219)

2.2 Sales and marketing skills

The Honeycomb survey assessed which particular sales and marketing skills needed developing in each

region’s workforce. Table 4 summarises the survey findings relating to the need for particular sales and

marketing skills, with key areas and significant differences between the eligible areas highlighted in amber.


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Table 4: Sales and marketing skills needing improvement/development

NI RoI Scotland

Pitching 48% 72% 54%

Negotiation 44% 63% 46%

E-marketing 44% 57% 54%

International markets 72% 59% 54%

Marketing through social media 52% 59% 71%

Market research 40% 48% 38%

Base: 103 respondents


In RoI, pitching and negotiation were the most common sales and marketing skills needs and were

significantly more severe in RoI than in NI or Scotland.

In NI, sales and marketing skills in relation to international markets was the most common skills gap

and was significantly more severe in NI than in RoI or Scotland.

In Scotland, marketing through social media was identified as the most common skills gap and was

significantly more severe in Scotland than in NI or RoI.

2.3 Business skil ls

The Honeycomb survey assessed which particular business skills needed developing in each region’s

workforce. Table 5 summarises the survey findings relating to the need for particular business skills, with key

areas and significant differences between the eligible areas highlighted in amber.


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Table 5: Business skills needing improvement/development

NI RoI Scotland

Developing business models 19% 51% 41%

Monetising content 23% 29% 45%

Commercial acumen 45% 51% 64%

Networking (including international) 65% 75% 82%

Identifying opportunities 68% 66% 55%

Self-presentation 35% 31% 27%

Project management 26% 31% 27%

Multi-skilling 35% 41% 23%

Accessing international markets 42% 51% 55%



Monetising content was a significantly greater issue in Scotland than in NI and RoI.

In NI, skills gaps in developing business models were significantly less of an issue than in RoI or

Scotland.

2.4 Software packages

Honeycomb asked survey respondents about skills gaps in the use of particular software packages. Table 6

summarises the survey findings, with key areas and significant differences between the eligible areas

highlighted in amber.


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Table 6: Skills in use of software packages needing improvement/development


Skills gaps in Adobe Photoshop and After Effects were significantly less likely in NI than in RoI or

Scotland.

Skills gaps in Final Cut Pro were significantly less likely in Scotland than in NI or RoI.

2.5 Finance skil ls

The Honeycomb survey assessed which particular finance skills needed developing in each region’s workforce.

Table 7 summarises the survey findings relating to the need for particular finance skills, with key areas and

significant differences between the eligible areas highlighted in amber.

Table 7: Finance skills needing improvement/development

NI RoI Scotland

Budget planning 30% 45% 40%

Accountancy and book keeping 35% 42% 70%

Production accountants 30% 37% 30%

Production managers 26% 34% 30%

Identifying sources of finance 96% 84% 60%


NI RoI Scotland

Adobe Photoshop 24% 45% 45%

Avid Editing 24% 26% 35%

Final Cut Pro 38% 39% 20%

After Effects 19% 32% 30%

HTML5 33% 29% 20%



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Skills gaps in accountancy and book keeping were significantly higher in Scotland than NI or RoI.

Identifying sources of finance was a severe skills gap across the nations, although it was notably lower

in Scotland than NI and RoI.

2.6 Other skil ls issues

This section provides a summary of the survey results for craft and technical, leadership and management and

creative skills.

Leadership and management and creative skills emerged as areas of moderate concern (see Table 1).

Response rates in the specific areas of skill were lower than the results discussed in previous sections and

because of this a summary of the overall survey findings are provided here. The three areas of greatest

concern relating to leadership and management skills across the eligible areas were reaching audiences in

new markets, company sustainability/growth and developing funding models/identifying sources of finance

(see Table 8). The three areas of greatest concern across the three regions combined relating to creative skills

were script writing, producing and design (see Table 9).

Table 8: Leadership and management skills

All companies

Senior strategic leadership 61%

Human resource management and training\development planning 29%

Developing funding models and identifying finance sources 65%

Company sustainability and growth 65%

New business models 55%

Reaching audiences in new markets 81%

Networking (including international) 55%

Mid-level management e.g. team leading 32%

Project management 55%

Developing future leaders within the company 39%



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Table 9: Creative skills

All companies

Directing 40%

Script writing 60%

Writing 55%

Producing 60%

Design 60%

Performing 19%

Animation 40%


In relation to craft and technical skills, the range of areas cited were wide, which increases difficulty in

addressing this area with specific training programmes. Addressing skills gaps through funding support for

training directly provided to industry could be a more effective option, allowing companies to identify

training that meets their specific skills needs. The areas where most respondents indicated there was a need

for skills development in relation to TV technical skills were knowledge of new technology and platforms

(13%), camera skills (12%) and editing (10%). In relation to film technical skills these were camera skills

(18%) computer software usage (13%) and lighting (13%). In relation to radio technical skills these areas

were editing (7%) and audio/sound/music (6%). In relation to interactive media technical skills these were

knowledge of new technology and platforms (31%), CGI (3D/Animation/VFX/Graphic Design) (18%) and

knowledge of mobile applications (11%).


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3. COMPANY DEVELOPMENT This section focuses on the company development and networking results of the Honeycomb survey. Focus

group sessions could help to help explain why there are gaps in several identified areas. The survey revealed

some substantial gaps in company development in terms of agency funding and support, growth challenges

and infrastructural development. A series of tables present the specific survey results in detail. Tables 10 to

12 and 15 to 20 are shaded to highlight the highest response rates. Response rates of 50% and over are

highlighted in amber and in bold text, while response rates between 40% and 49% are highlighted in amber.

Tables 13 and 14 are colour coded and structured around three states regarding company development

issues identified from the survey. Red denotes that the situation may indicate a severe concern for action and

may be regarded as a critical problem requiring attention. Yellow denotes that the situation may indicate a

significant concern for action, that a problem exists and although not severe, may also require intervention.

Green denotes the situation may indicate a moderate concern for action, and although not optimal, may not

require the same intervention.

3.1 Assistance

More than a third of companies had received assistance from a government department or agency to help

grow their businesses (see Table 10). Almost two-thirds (63%) of the digital content companies across all three

regions had never received any state assistance to grow their business.

Table 10: Received assistance from government department/agency to assist growth

Sub-sector Project Area

All

companies

Film and

Broadcast

Interactive

Media Other NI RoI Scotland

Received assistance

37% 42% 35% 35% 37% 40% 35%



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Figure 1: Assistance from a government department or agency

It would be useful to find out whether the suggestions below, and others, are responsible for the medium levels

of assistance found.

Key findings

With regards to financial support, companies may be self-sufficient through internal mechanisms such

as bootstrapping or receive funding from banks and private investors.

Companies may be unaware of support available through agencies such as: Enterprise Ireland, Invest

Northern Ireland, InterTrade Ireland and Scottish Enterprise.

The application process may be a burden on companies in terms of the time commitment required,

coupled with the chance of rejection.

Companies may apply for support and are unsuccessful.

Rejection rates for companies may be high because companies do not adequately address the

purpose for which assistance is sought in their applications.

These issues have implications for business development. Government departments and agencies may need to

devise strategies for communicating more effectively with digital content companies. The nature of the

assistance received is next detailed.

3.1.1 Nature of assistance received to help business g rowth

Loans are popular across all regions. Although all forms of assistance are important for company growth,

companies may prefer loans to any other kind of agency assistance.

0%

20%

40%

60%

80%

All Northern Ireland

Republic of Ireland

Scotland

37% 37% 40% 35%

63% 63% 60% 65%

Received assistance from government department or agency

No assistance received from government department or agency


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Figure 2: Nature of assistance received – all companies

Marketing assistance was popular in NI and to some extent in Scotland (see Table 11). Product development

assistance was identified among almost a third (32%) of companies in Scotland. Loans form the majority of

business growth assistance. Of those who received assistance, for almost two-thirds (63%) this assistance was

in the form of a loan. Companies in film and broadcast sector across the three regions were more likely to

have received a loan (77%) than all other digital content companies in NI (52%), RoI (70%) and Scotland

(64%). More than a third of companies received marketing assistance. Interactive media companies were

more likely to have received this form of assistance than those in the film and broadcast sub sector or those

who classed themselves in other digital content sectors. Furthermore, companies in receipt of marketing

assistance were more likely to be located in NI and to a lesser extent in Scotland. Just over one fifth (22%) of

companies in RoI that received agency assistance received this for marketing purposes.

15% 17%

37%

22%

63%

10%


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Table 11: Nature of assistance received to help business grow

Sub-sector Project area

All companies

Film and Broadcast

Interactive Media

Other NI RoI Scotland

Employment 15% 14% 18% 7% 22% 14% 9%

Mentoring 17% 20% 18% 7% 17% 22% 9%

Marketing 37% 34% 45% 21% 57% 22% 41%

Product development

22% 17% 27% 21% 17% 19% 32%

Loan 63% 77% 52% 57% 52% 70% 64%

Other 10% 6% 12% 14% 22% 3% 9%


The third popular type of assistance received was in product development. Over a fifth (22%) of companies

benefited from this type of assistance. Interactive media companies based in Scotland were the most likely to

be in this category, while NI companies in the film and broadcast sector were the least likely to have received

assistance in product development. Agency assistance in mentoring and employment were identified at low

levels (17% and 15% respectively), with Scottish companies the least likely to have benefited from any of the

two (9%). And with regard to RoI companies, and especially in mentoring support, there was little variance

between the companies north and south of the Irish border.


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Figure 3: Nature of assistance received - comparison of regions

Key findings

Assistance received for employment purposes was very low, particularly for companies outside the

film and broadcast and interactive media sub sectors or based in Scotland. In order to sustain the

continued contribution of small businesses to economic growth and reduce unemployment in peripheral

regions, employment assistance schemes could be made more visible to companies.

Mentoring support was low across all regions, despite the fact that most of the companies in this

industry are relatively young and small.

Marketing assistance was found to be low for companies in RoI, and at medium levels in Scotland.

Most companies operate locally and could potentially benefit from marketing support to grow through

exports.

Product development assistance was low across RoI and NI, while at medium levels in Scotland. It is not

clear whether the majority of companies (especially in film and broadcast) have not received this type

of support. Companies in this sector may be unaware of this support. Product innovation is important

for competitiveness, an assertion which is supported by the results of this survey where a company’s

ability to innovate (as a response to customer and market dynamics) ranks high on challenges to

business growth over the next five years (see Section 3.2 and Table 13). Consequently, improving the

number of eligible companies that can access product development assistance should be a key

0%

10%

20%

30%

40%

50%

60%

70%

80%

All

Northern Ireland

Republic of Ireland

Scotland


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strategy assisting the future contribution of the digital content sector in developing peripheral regional

economies.

Loans were a popular form of assistance received across all regions. Making access to external

finance easier for these small companies could assist growth at a quicker pace.

All other forms of support were very low in the eligible regions and it is important to investigate

further why this is the case.

3.1.2 Interest in events and support programmes

Interest in attendance at all kinds of events and support programmes was high, particularly in trade,

networking and international events, as well as funding workshops. Table 12 outlines the survey results based

on respondents that indicated they were fairly or very interested in events and support programmes.

Key findings

Further underlining the high interest in access to funding, there was high interest found in attending

funding workshops.

A high degree of interest was found in attendance at trade events, international events and

networking events across all regions and sub sectors.

Moderate interest was found in attendance at showcase events, although the interest from RoI was

lower.

The survey revealed a high interest in support programmes in product development and access to

academic institutions, particularly for companies in NI and RoI.


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Table 12: Interest in events/support programmes


All Companies

Film and Broadcast

Interactive Media


Trade events1 75% 79% 75% 68% 71% 83% 67%

Networking events

2

85% 89% 84% 78% 83% 90% 79%

International events

3 58% 58% 56% 65% 62% 66% 44%

Showcase conference

4

40% 38% 37% 53% 29% 49% 38%

Joint tendering

workshop5

46% 50% 43% 45% 44% 60% 27%

Sales programme

6

31% 26% 31% 40% 22% 41% 24%

Product development support

7

52% 52% 52% 50% 52% 60% 38%

Access to academic institutions

8

62% 67% 61% 55% 60% 72% 49%

Online

programmes9

53% 50% 57% 50% 48% 66% 40%

Funding workshops

10

74% 75% 75% 70% 75% 87% 54%

Base: 1164 respondents,

2186 respondents,

3128 respondents,

488 respondents,

5101 respondents,

667 respondents,

7113 respondents,

8136 respondents,

9116 respondents,

10162 respondents.


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3.2 Challenges to growth

Over the next five years, access to funding and ability to innovate could be central to driving growth in the

eligible area’s digital content sector. Additionally, access to markets for RoI companies may also be important

(see Table 13).

Companies were asked about challenges facing them over the next five years. Of six challenges, the top two

across all companies were ‘access to funding’ and the ‘ability to innovate to respond to customer and market

needs’. Across all digital content companies, funding was the most commonly cited future challenge, with 63%

of companies agreeing this was so. This is against the backdrop that funding was also the most common form

of government/agency assistance that companies received. The distribution of ‘access to funding’ responses

across the sub sectors underlines its importance as a challenge. However, this trend was most evident in RoI

and NI, and was of lesser severity in Scotland where 38% of companies saw funding as a challenge. When it

came to innovation ability as a future challenge, the proportion rose to 46% for Scottish companies. This was

still however below the other two regions where more than 60% of companies saw innovation ability as a

challenge for future competitiveness.

Table 13: Challenges to business growth over the next five years


All companies

Film and Broadcast

Interactive Media


Access to funding1

63% 65% 62% 60% 70% 75% 38%

Recruitment of skilled staff2 39% 31% 45% 38% 49% 29% 41%

Retention of skilled staff3 18% 20% 21% 10% 24% 18% 14%

Access to local markets4 26% 30% 25% 23% 24% 33% 19%

Access to markets5

43% 48% 42% 35% 33% 53% 38%

Ability to innovate and respond to customer and market needs

6

59% 63% 63% 40% 62% 66% 46%

Key Severe concern

50%-100%

Significant concern

30%-49%

Moderate concern

1%-29%


284 respondents,

341 respondents,

458 respondents,

594 respondents,

6129

respondents.


24

In addition to funding and innovation challenges, a significant proportion of companies also agreed that

‘access to markets’ and ‘recruitment of skilled staff’ will be challenges over the next five years.

It was shown in section 3.1.1 that more companies in NI and Scotland than RoI had received agency support

for marketing purposes. Of the RoI digital content companies surveyed, 58% saw market access as a

challenge to business growth in the next five years, compared to less than 40% for digital content companies

in NI and Scotland.

Key findings

Access to funding can be considered as a critical challenge to future business growth, particularly in NI

and RoI. Availability and accessibility of financing to SMEs may be very important for future sustained

competitiveness.

Access to markets was identified as a significant issue in RoI, but for NI and Scotland it was of a lesser

significance.

Access to local markets could be a challenge of concern for RoI companies but was a moderate

concern for companies in NI and Scotland.

Recruitment of skilled staff does not appear to be a critical issue across sub sectors or regions but still

may indicate a concern for action.

The survey results suggest that retention of skilled staff is not a critical issue. This together with the

moderate importance of skilled staff recruitment suggests that freelance and sub-contracting activities

may likely become significant influencers defining the industry’s future landscape.

Across the regions (particularly for RoI and NI) and sub sectors, the ability to innovate and respond to

customer and market needs could be critical for competition in the digital content industry, particularly

in light of continuously changing technologies.

3.2.1 Infrastructural impediments to growth

Improving broadband capacity is important for company growth, especially in Scotland. Moreover, a third of

companies in Scotland were also concerned about both air and public transport services being impediments to

growth (see Table 14).


25

Table 14: Infrastructural impediments to company/organisation growth


All companies

Film and Broadcast

Interactive Media


Road network

1 16% 20% 11% 23% 10% 13% 29%

Broadband capacity

2 51% 62% 42% 50% 37% 49% 68%

Regulatory3 14% 20% 8% 15% 16% 16% 10%

Legal4

17% 20% 16% 15% 19% 24% 6%

Air transport

5 16% 18% 12% 20% 8% 10% 32%

Public

transport6 18% 25% 9% 25% 8% 16% 32%

Other7 7% 14% 5% 15% 10% 5% 19%

Key Severe concern

50%-100%

Significant concern

30%-49%

Moderate concern

1%-29%


2112 respondents,

331 respondents,

438 respondents,

534


723 respondents.


26

Figure 4: Infrastructural impediments - comparison of regions

Figure 5: Infrastructural impediments - all companies

Key findings

The most significant infrastructural impediment to organisational growth was broadband capacity. This

is particularly evident in Scotland where 68% of respondents singled this out. Companies in the film

and broadcast sector were more likely to find this an impediment than those in interactive media.

0%

10%

20%

30%

40%

50%

60%

70%

All

Northern Ireland

Republic of Ireland

Scotland

0%

10%

20%

30%

40%

50%

60% 51%

18% 16% 14% 17% 16%

11%


27

However, the nature of the digital content sector means it relies heavily on broadband capacity so

any improvements in capacity would benefit companies.

Significant concerns with both air and public transport were identified in Scotland and future

improvements could benefit companies in this area.

3.3 Networking and collaboration

3.3.1 Membership and affiliation to networks and trade associations

The survey revealed some substantial gaps in company networking. Less than two fifths (39%) of companies

belonged to a network or trade association, with membership lowest (29%) for interactive media companies.

Outside of the film and broadcast and interactive media sectors, other digital content companies were more

likely to be affiliated to networks and trade associations.

Key finding

Network membership has benefits which should be promoted to companies to encourage increased

membership.

Table 15: Membership of/affiliation to networks/trade associations


All companies Film and Broadcast

Interactive Media


Member/ affiliation to network or trade association in

creative Industries or another business network

39% 45% 29% 50% 35% 39% 44%



28

Figure 6: Membership and affiliation to networks or trade associations –all companies

3.3.2 Services or supports hoped to achieve through networking

Digital content companies, particularly those in interactive media, hope that networking can especially help

them to gain access to the latest technological developments. Table 16 outlines services and supports that

companies would hope to gain through networking, and the level of interest, as identified in the Honeycomb

survey.

Key findings

All companies hoped to gain access to the latest technological developments from networking,

particularly those in NI and RoI.

While almost half of the companies were interested in networks for developing products or services,

those in film and broadcast appeared to have the greatest interest, but were the least interested in

accessing market intelligence.

Over half of interactive media companies were interested in accessing market intelligence and 70% in

attracting business through networking.

Over two fifths of all companies were interested in networking to access finance. A lower interest in

networking to gain the following supports and services was identified: export development; sales and

marketing; skills training; leadership and management development and business mentoring.

Other services and supports hoped to gain through networking were cited by 17%. Notably, almost

three quarters of these respondents cited networking in an effort to gain more business as another

benefit hoped to gain from networking.

0%

10%

20%

30%

40%

50%

60%

70%

All Northern Ireland

Republic of Ireland

Scotland

39% 35% 39%

44%

61% 65% 61%

56%

Member or affiliated to network or trade association

Not member or affiliated to network or trade association


29

Table 16: Services/Support hoped to gain through creative industry networking

Sub sector Project area

All companies

Film and Broadcast

Interactive Media


Access to the latest technological developments

1

53% 49% 64% 35% 65% 52% 43%

Product or

service development

2 46% 50% 44% 40% 44% 48% 43%

Access to market intelligence

3 40% 29% 52% 35% 48% 42% 29%

Access to finance

4

42% 37% 43% 48% 44% 53% 22%

Export development support

5 5% 4% 7% 5% 5% 6% 5%

Sales &

marketing support

6 31% 35% 23% 40% 32% 30% 30%

Skills training 7

20% 21% 14% 30% 19% 17% 24%

Leadership and management development

8 4% 2% 5% 5% 5% 5% 2%

Business mentoring

9 21% 25% 19% 15% 13% 28% 17%

Other10

17% 27% 11% 13% 5% 12% 38%

Base:1116 respondents,

2100 respondents,

387 respondents,

491 respondents,

512 respondents,

667


89 respondents,

945 respondents,

1038 respondents.


30

Figure 7: Services and support hoped to gain through networking – all companies

Access to the latest technological developments


Access to finance


Sales and marketing support

Skills training

Leadership and management development

Business mentoring

Product or service development

Other

53%

40%

42%

5%

31%

20%

4%

21%

46%

17%


31

Figure 8: Services and support hoped to gain through networking - comparison of regions

3.3.3 Existing collaborations within the sub-sectors

Generally, the survey found a low level of existing collaboration within the different digital content sub

sectors (see Table 17). An exception was collaboration between animation companies and other companies

outside film and broadcast and interactive media sub sectors where over half cited that they collaborate.

Collaborations in content creation, joint marketing, product development, research and development,

intellectual property, distribution channels and other activity areas were low. Almost two thirds of TV and film

companies collaborate with each other, and over half of interactive media companies collaborate . Over half

of film companies cited collaboration with other companies.

0% 20% 40% 60% 80%

Access to latest tech developments


Access to finance


Sales and marketing support

Skills training

Leadership/management development

Business mentoring

Product or service development

Other

Scotland

Republic of Ireland Northern Ireland All


32

Table 17: Sub sectors/areas of existing collaboration


All Companies

Film and

Broadcast

Interactive

Media Other NI RoI Scotland

TV1

41% 61% 22% 45% 54% 33% 40%

Film2

41% 62% 17% 53% 48% 31% 48%

Interactive Media3

37% 23% 51% 33% 37% 43% 27%

Facilities for Film and

TV4 33% 15% 20% 20% 21% 17% 17%

Music and Music

Technologies5 32% 42% 26% 30% 37% 33% 29%

Joint Marketing6

22% 25% 7% 23% 16% 19% 14%

Content Creation7 21% 4% 5% 3% 8% 4% 0%

Animation8

18% 38% 18% 53% 27% 37% 30%

Radio9

17% 19% 17% 13% 24% 14% 14%

Product

Development10 17% 17% 15% 8% 19% 13% 11%

Research and

Development11 14% 13% 11% 10% 11% 13% 10%

Intellectual Property12

12% 27% 22% 10% 25% 19% 22%

Distribution Channels13

11% 25% 18% 18% 16% 20% 25%

Computer Gaming

Design14

4% 14% 14% 5% 13% 12% 13%

Other15

3% 5% 1% 3% 6% 1% 2%


289 respondents,

380 respondents,

472 respondents,

570 respondents,

648 respondents,

745 respondents,

840 respondents,

937 respondents,

1037 respondents,

1131 respondents,

1227 respondents,

1325

respondents, 14

9 respondents, 15

6 respondents.


33

Table 18: Sub sectors/areas of potential collaboration


All companies Film and

Broadcast

Interactive

Media


TV1 69% 82% 55% 78% 75% 74% 57%

Film2 65% 81% 47% 73% 68% 66% 60%

Interactive Media3 66% 51% 81% 60% 65% 80% 46%

Facilities for Film and

TV4

58% 37% 53% 43% 46% 53% 32%

Music and Music

Technologies5

49% 64% 55% 50% 63% 60% 48%

Joint Marketing6 57% 44% 21% 50% 33% 44% 24%

Content Creation7 50% 14% 39% 20% 33% 28% 16%

Animation8 45% 60% 34% 65% 51% 54% 41%

Radio9 35% 52% 63% 58% 63% 66% 41%

Product

Development10

58% 49% 57% 50% 56% 61% 37%

Research and

Development11

53% 37% 39% 35% 33% 49% 24%

Intellectual Property12

48% 58% 58% 53% 56% 65% 48%

Distribution

Channels13

37% 55% 53% 35% 43% 63% 38%

Computer Gaming

Design14

26% 51% 48% 40% 46% 61% 30%

Other15

2% 4% 0% 1% 5% 1% 0%


2142 respondents,

3144 respondents,

4126 respondents,

5108 respondents,

6125


898 respondents,

977 respondents,

10127 respondents,

11115 respondents,

12105

respondents, 13

82 respondents, 14

57 respondents, 15

4 respondents.


34

3.3.4 Potential collaborations within digital content sub sectors

A high level of interest in future collaborations across all sub sectors and areas of value-adding activities was

found. Promoting networks and trade associations to companies and encouraging their membership could link

up interested companies for suitable collaborations.

Key findings

There was a high interest among companies, particularly in film and broadcast, to collaborate in the

areas of: product development; research and development; joint marketing; content creation;

intellectual property and distribution channels.

There was also an interest among companies in all the different sub sectors to collaborate across the

board.

3.3.5 Work in niche sectors outside the creative industr ies

In general, there was a low incidence of digital content companies working in niche sectors outside of creative

industries, with the exception of moderate work done in education by film and broadcast companies. It is

likely that with the exception of film and broadcast, collaboration and working within their own sector is the

preferred option for these companies. Companies that worked in the health sector worked in the areas of

documentaries, community health and videos. An interactive media company worked with developing blood

transfusion graphics. Other interactive media companies had also worked in the following areas: feedback

systems; visualisation for researchers; website design and female health monitoring. Some film and broadcast

companies worked in other areas such as the following: autism and dementia; promotions; live conferencing;

art for new hospital and promoting sexual health.

Table 19: Niche sectors working in outside of creative industries

Sub sector Project Area

All Companies

Film and Broadcast

Interactive Media


Health1 16% 21% 14% 13% 19% 15% 16%

Education2 27% 40% 19% 18% 29% 26% 27%

Sport 3 14% 20% 6% 18% 13% 13% 16%

Other4 22% 21% 22% 25% 17% 22% 29%


259 respondents,

330 respondents,

449 respondents.


35

Key findings

Of the more than a quarter of companies that worked in the education sector, the majority were from

the film and broadcast sub sector.

The majority of companies working in sport were from the film and broadcast sector where they were

involved in filming sport events.

Outside the three sectors of health, education and sport, companies (especially, those outside film and

broadcast and interactive media) worked in other areas also, with the tourism sector being the most

common other area cited.

Interest in working in niche sectors outside of creative industries was assessed and most companies wanted to

continue working within creative industries (see Table 20). That said, a quarter overall indicated they would

potentially like to work in the education sector. Most respondents who cited another area cited tourism as an

area they would potentially like to work.

Table 20: Potentially like to work in non-creative industry niche sectors


All companies

Film and Broadcast

Interactive Media


Health1 12% 17% 9% 8% 10% 12% 14%

Education2 25% 27% 20% 33% 19% 28% 27%

Sport 3 13% 17% 11% 10% 11% 14% 13%

Other4 22% 21% 25% 18% 24% 23% 21%


255 respondents,

328 respondents,

449 respondents.

Key findings

A quarter of companies were interested in working in education, such as producing training videos

and media courses.

Less than 15% of all companies had an interest in work in sport. Areas of interest included equine,

football or curling, others would engage in any project within the remit of sports. The reasons for this

may range from increasing specialisation, improvements to bottom-line performance and company

growth.


36

Over 10% of companies would like to work on a wide range of health projects such as training

videos, working with community groups, public health programmes, hospital radio systems, community

health, GP applications and connected health.

Outside health, education and sports, film and broadcast and other companies (with the exception of

those in interactive media), particularly in RoI and Scotland, would like to work in other areas, in

particular tourism-related activities.


37

4. CONCLUSION

The Honeycomb survey identified a range of skills needs and company development issues in each region. The

key emerging issues are detailed in this final section.

4.1 Key issues around skil ls gaps and training needs

Overall, in terms of the level of training reportedly required, beginner level training in any area was not

identified as priority, and intermediate and advanced training were identified as more significant needs.

4.1.1 Republic of Ireland

In RoI, two areas of skills gap were classed as severe and four as significant, signalling that skills

development is most pressing in the RoI area, comparatively speaking based on the survey results.

The skills gap identified by most RoI respondents was business skills, which close to two thirds (63%)

agreed was lacking. The top two specific areas of business skills identified as gaps were national and

international networking (75%), as well as identifying opportunities (66%). Over half also identified

developing business models, commercial acumen and accessing international markets as business skills

needing improvement.

The skills gap identified by the second highest number of RoI respondents were sales and marketing

skills that almost three fifths (58%) identified as lacking. Pitching (72%) and negotiation (63%) were

the top two specific areas identified as in need of development. Over half also identified e -

marketing, international markets and marketing through social media as needing improvement.

4.1.2 Northern Ireland

Of the six areas of skills gaps assessed in the survey, five out of the six areas were classed as

significant gaps in NI.

The skills gap identified by most NI respondents was business skills that almost half (49%) agreed was

an issue. The two top specific areas of business skill were the same as in RoI. Over two thirds of NI

respondents identified national and international networking (65%), as well as identifying

opportunities (68%) as business skills gaps.

The next skills area the most respondents identified as a gap was craft or technical skills (43%).

4.1.3 Western Scotland

Of the six areas of skills gaps assessed in the survey, four out of six in Scotland were classed a

significant.

The top skills gap in Scotland was in sales and marketing, which almost two fifths (38%) of

respondents identified as an issue. The specific area of sales and marketing skills that most

respondents identified was marketing through social media (74%), and over half also identified


38

international markets, pitching and e-marketing as specific sales and marketing skills areas in need of

development.

The next most identified skills gap was business skills (35%). National and international networking

was identified as a business skill in need of improvement by 82% of these respondents.

4.2 Company development

4.2.1 Infrastructure issues, key challenges and supports

Overall funding was a central issue facing digital content company growth and development. Funding

was however a more significant issue in NI and RoI than Scotland. On the regional level, 70% of NI

and 75% of RoI respondents identified access to funding as a challenge, while 38% of respondents in

Scotland agreed it was.

Another key challenge identified was an ability to innovate and respond to consumer and market

needs. Almost two thirds (62%) of NI and over two thirds (66%) of RoI respondents agreed this would

be a challenge to future business growth. Less than half (46%) of respondents in Scotland identified it

as a challenge.

The top three events and support programmes respondents were interested in were trade events,

networking events and funding workshops. In RoI and NI interest was highest in networking events,

followed by funding workshops and trade events. In Scotland interest was highest in networking

events, followed by trade events and funding workshops.

The biggest overall infrastructural issue was broadband capacity. This was however a lesser concern

in NI. In Rol, almost half of respondents agreed broadband was an issue and over two thirds of the

companies surveyed in Scotland agreed it was.

4.2.2 Networking and collaboration

Membership of networks and trade associations was generally found to be low. Overall 39% of all

companies were members of networks or trade associations.

Companies hoped in particular to gain access to the latest technological developments, product or

service development and access finance through networking.

Work in the health and sport sectors was not very common and companies did not display a

significant interest in these areas of work. Current work and interest in work was highest in education,

where around a quarter of respondents had worked or had an interest in this area.

Interest in collaboration within creative industries was higher than with other sectors. Over half of all

companies identified potential for collaboration with the TV, film, interactive media and facilities for

film and TV sub sectors, and in specific areas of work such as joint marketing, content creation, product

development and research and development.


39

Current levels of collaboration were lower than interest in collaboration indicating collaboration

across creative industry sub sectors is an area of potential future development.


40

APPENDIX 1: THE HONEYCOMB CREATIVE WORKS TEAM Staff and management committee

David Brown, Scottish Programme Coordinator, Creative Skillset

Dr Paul Beaney, Project Director, Ulster University

Deirbhile Doherty, Finance Assistant, Ulster

University

Professor Sarah Edge, Skills Director, Ulster

University

Kevin Fearon, Networks of Scale Coordinator, Dundalk Institute of Technology

Professor Nick Higgins, Research Associate,

University of West Scotland

Ian Kennedy, Management Committee, Creative

Skillset Northern Ireland

Camilla Long, Skills Coordinator, Ulster University

Irene McCausland, Management Committee, Dundalk Institute of Technology

Fiona McElroy, Programme Manager, Ulster

University

Stephen Michael, Web Developer, Ulster

University

Dr Colm Murphy, Intelligence Director, Ulster

University

Dr Aisling Murtagh, Research Associate, Ulster University

Dr Douglas Nanka-Bruce, Research Associate,

Dundalk Institute of Technology

Caroline O'Sullivan, Skills Coordinator, Dundalk

Institute of Technology

Maria Prince, Programme Administrator, Ulster

University

Alasdair Smith, Management Committee, Creative

Skillset Scotland

Agnieszka Walsh, Project Administrator, Dundalk

Institute of Technology

Dan Wilks, Research Associate, Creative Skillset

London

Lead partner

Ulster University

Partners

Creative Skillset

Dundalk Institute of Technology

University of the West of Scotland

Delivery partners

Creative Scotland

Letterkenny Institute of Technology

MG Alba

Regional Development Centre, Dundalk Institute of

Technology

ScreenHI

The Nerve Centre

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