Entrepreneur = a person who seeks to generate value through the creaton or expansion of economic
actvites, by identfying and exploitng new products, processes or markets
Value:
Economic value = money fow, gross natonal product
Hedonic value = pleasure
Instrumental value = functonal, cognitve grow
Social value = group membership, social cohesion
Culture value = beyond social value, recognized by a specifc community who believe it is
valuable, producton of belief
There are diferent levels of newness. The line between what is new and old is fading. Do small
modifcatons make something new? And how much modifcaton is needed to say something is new?
The division in what consttutes the cultural feld exists from:
Upstream cultural actvites = the ‘traditonall cultural actvites, which are ofen more art
oriented or artst driven. They are ofen seen as ‘highl culture. The performing arts, visual
arts and literature are examples of actvites that belong to upstream cultural actvites.
These actvites come together in the cultural industries.
Downstream cultural actvites = not so much of the ‘traditonall cultural actvites. These
actvites are more market oriented or consumer driven. They are ofen seen as low culture.
Media, advertsing and fashion are examples of actvites that belong to downstream cultural
actvites. These actvites come together in the creatve industries.
It is quite important to make this distncton, because the ways the people in the cultural and creatve
industries work, are quite diferent.
There is also a distncton of three clusters of cultural and creatve entrepreneurs:
Creatve service providers = these entrepreneurs exchange tme for IP (=Intellectual
Property) products. They have direct interacton with the userls demand. They are highly
infuenced by technology and digitzaton, mostly proeect based and ofen private or selfi
fnancing. Sectors that belong to the creatve service providers are design, architecture, new
media and advertsing.
Creatve content providers = these entrepreneurs are the producers of IP products. They are
highly infuenced by digitsaton, mostly for creaton and useriinteracton. They are also
mostly proeect based and fnanced ofen by a mix of private fnancing and subsidised sectors.
These entrepreneurs experience threats of piracy from digital markets and peer to peer
exchange. Sectors that belong to the creatve content providers are TV and radio, fashion,
games, music, flm and books.
Creatve experience / oriiinal providers = these entrepreneurs ofen create oneiof products
and services (thus not for the mass). They usually have to pay for otherls copyright and are
mostly subsidised and concerned by the cultural value of their work. They work mostly on
contract basis and digitzaton is mostly for disseminaton and as a communicaton tool.
Sectors that belong to creatve experience / original providers are performing arts and visual
arts.
There can be overlap between those three clusters.
, ECF Summary slides
Cultural/creatve entrepreneur = someone who creates or innovates a cultural or creatve product
and who uses entrepreneurial principles to organize and manage his creatve actvites in a
commercial manner.
Entrepreneurs who are actve in the cultural or creatve sector:
Need entrepreneurial actvites (organize recourses and create value, perceive opportunites
in markets)
See changes as the norm and as healthy (willingness to assume risks, alertness to
opportunites)
Difer from regular entrepreneur, due to the type of creatvity that is being used and how the
creatvity drives entrepreneurship
Feels the tension between the creator and the entrepreneur
Tries to fnd a balance between generatng creatve value ad economic value
The subsidy system shapes the balance between creatve and economic value. However,
heavily subsidized sectors tend to be less driven by entrepreneurial motves
Creatvity as a process:
Based on artstc freedom
Results in hedonic (experience), societal (quality of life concerns) and cultural (togetherness)
values of a product
Economic value is considered less important
Characteristcs of the cultural / creatve industries:
Size: there is an high proporton of small organizatons with less than 10 employees. Medium
organizaton frms seem almost absent.
Turnover: the huge amount of small businesses are responsible of only 18% of the turnover
Assets: small business have substantally less assets
Labour market: due to the fact that fexibility is important, small scale cultural organizatons
use noniconventonal forms of employment. This results for example in multple eobiholding
and combining cultural/creatve actvites with other professions
Diversity of skills acquisiton: due to the practcal knowledge gathered in diverse setngs,
there is difculty in recognizing quality. Reputaton is important (ofen networkibased)
Outputs: products, ofen difcult to measure in economic value
Processes: small frms pioneer in knowledge based, labour intensive outputs. Large frms
focus on capital intensive aspects of mass producton and distributon
All these characteristcs of the cultural/creatve industries afect the structure of the feld (many
small businesses and only a few large ones) the work processes (design process) and the
management models.
Small scale cultural organizaton:
Are very small
Are highly dynamic
Require riskitaking
Rely on networks
Have R&D as main actvity, while producton and distributon is secondary
Hire capable, freelance employees for proeects if necessary
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