Thomas H. AagesonChairman

Global Center for Cultural Entrepreneurship

Executive DirectorMuseum of New Mexico Foundation

New Strategies for Cultural EnterprisesUNESCO Forum on Cultural Industries

24-26 September 2009Monza, Italy

This presentation is available for download at www.slideshare.net Search “Aageson”

We do not become culturally relevant when we become like the culture, but rather when we model what the culture hungers to become.

Bill Johnson, Dreaming with God

The time has arrived, the movement has begun to develop strategies that support the cultural

entrepreneur in five key areas:

• Cultural Industries Policy• Education, Training & Mentorship

• Investment Strategies• Creating Markets, Developing Market Links

• Sharing our Wisdom

The critical new strategy is to focus on the Cultural Entrepreneur

The Cultural Entrepreneur

Cultural Entrepreneurs are cultural change agents and resourceful visionaries who generate revenue from a cultural activity. Their innovative solutions result in economically sustainable cultural enterprises that enhance livelihoods and create cultural value and wealth for both creative producers and consumers of cultural services and products.

Aageson, Thomas H. “Cultural Entrepreneurs: Producing Cultural Value and Wealth.” The Cultures and Globalization Series: The Cultural Economy. Ed. Anheier, Helmut and Yudhishthir Raj Isar. London: Sage Publications, 2008. 92-107.

Cultural Industries Policy creates the framework and priorities for investment in Cultural Entrepreneurs,

Cultural Enterprises and, Cultural Industries

Develop Cultural Industries Policy in three areas:

1. Policy that fosters the development of cultural entrepreneurs

2. Policy that addresses public and private strategies for cultural industries to grow

3. Policy that focuses on specific sectors and clusters

Cultural Industries Policy

Several strategies are available to us to build and strengthen our cultural enterprises:

Invest in Market development and Market LinkagesLocally: Cultural & Creative TourismNationally: New Channels of Distribution; Malls and Festivals, etc.International:Exporting cultural products and services

Create Investment Funds for Enterprise GrowthCreating new funds, private and public, that invest in our cultural entrepreneurs who will convert cultural capital into successful enterprises, enhancing cultural workers livelihoodswww.socialcapitalmarkets.net

Support Technical Assistance for Product DevelopmentThe irony of preserving traditions is the seed of innovation and

creativity is needed.

Policy that address public and private strategies for cultural industries to grow

Initiate Facility DevelopmentWe need cultural incubators, studios, performing venues, such asthe Brewhouse in Göteborg, Sweden www.brewhouse.se

Foster Network and Cluster DevelopmentLinking together creators and markets will create positive synergy

Provide Legislation that fosters the development of cultural enterprises and industries

Zoning for arts and cultural districtsTax incentives to promote investment and market developmentArchitecture restoration, preservation and zoningSimplify enterprise regulations and permitsLaws that protect cultural property

Key to cultural industries policy is selecting cultural sectors and clusters integrating creation, production and distribution

Cultural Industry Sectors include:

ArtisansAuthorsArtistsArchitectureCulinaryDesign: Graphic, Fashion, IndustrialEducationFestivals and MarketsFilm

LiteratureMusicMedia: Radio, TV, NewspaperMuseumsPerforming artsPublishersTourism: Cultural, Heritage, Creative

and Eco tourismVisual Arts

Policy that focus on specific sectors and clusters

We need a new form of entrepreneurship education and training to develop our emerging cultural entrepreneurs. Cultural Entrepreneurship takes a different form in emerging economies versus economies moving out of the industrial age into the creative age. How do we develop cultural entrepreneurship with indigenous communities as a tool for economic development in emerging economies? What is the new role of mentorship for assisting cultural entrepreneurs?

The trend in cultural entrepreneurship education is using examples where 20% of the people live and prosper yet some of the most vibrant cultural enterprise opportunities are occurring where 80% of the people reside in some of the poorest countries. How do we shape our cultural industry development in the context of emerging economies?

What about people who do not have two years nor the funds for a higher education opportunity? What practical ways can we meet cultural entrepreneurs in their moment of need and developing their cultural enterprise? (See appendix)

Cultural Entrepreneurship Education and Training

Economic Importance of the Arts and Cultural Industries in Santa Fe County http://bber.unm.edu/pubs/SFCoArtsES.pdf

City of Santa Fe, New Mexico, USAEconomic Development Strategy for Implementation http://www.santafenm.gov/index.aspx?nid=592

Investing in our Cultural Enterprises and Entrepreneurs

Cultural Enterprises

Create jobs

increase tax revenues

enhance livelihoods attract outside

capital

create sustainable economic development

attract other enterprises to the local

economy

enrich the quality of life

Sustainability

Cultural enterprises create sustainability that is economic, social, environmental and cultural, all woven together. The industry is one of the strongest growth areas on our world economy as measured by UNESCO.

International Flows of Selected Cultural Goods and Services, 1994-2003 http://www.uis.unesco.org/ev.php?ID=6383_201&ID2=DO_TOPIC

Let us think together today how we can connect Financial Capital, Cultural Capital and Cultural Enterprises.

It is up to us to capitalize cultural enterprise investments. http://www.socialcapitalmarkets.net/

Create a Cultural Entrepreneur and Enterprise Fund

(See appendix)

Our work to support cultural entrepreneurs must be long term and sustainable.

Is our work to build our brand or to lift people up? How do we balance Mission and Market ? If we left, would the cultural workers livelihoods continue to grow and their families be better off?

Creating Markets, Developing Market Links

We have multiple markets for our cultural entrepreneurs:

Local: Cultural and Creative Tourism Regional and National: Fashion, Decorative, Film, Books, International: Export oriented entrepreneurial

efforts

We must find the appropriate channels of distribution that increase the benefit to the creator and the merchant.

Creating Markets, Developing Market Links

1. The Internet is creating direct, global markets

Design 21/UNESCO inspires young designers http://portal.unesco.org/culture/en/ev.php-URL_ID=35082&URL_DO=DO_TOPIC&URL_SECTION=201.html

Not on the High Street represents 800 artists and craftspeople in the UK http://www.notonthehighstreet.com/

Etsy has created a new market in two years for Do-it-Yourself folks http://www.etsy.com/

Trends are emerging that can help us create new markets for cultural markets:

Culture Label is a new site for “culture shoppers” featuring products from museums aggregated together. http://www.culturelabel.com/Home.mvc

New Mexico Creates is a brand in Museum of New Mexico Foundation’s museum shops that now works with over 800 New Mexico artists and artisans. www.newmexicocreates.org

eBay developed a new fair trade site with over 6000 products from around the world. http://worldofgood.ebay.com/

2. Individuals with heart and talent

Shahidul Alam create Drik (Bangladesh) to promote the photographic work of artists in the majority world to media in the minority world. www.drik.net/

Sandra Browne created Pelican Village in Barbados for local artisans through the public office of the Barbados Industrial Development Corporation http://barbados.org/pelican_village.htm

Carol Cassidy created Lao Textiles that has developed traditional weaving by connecting the weavers work with high-end markets globally. www.laotextiles.com/

Lan Tran created Craft Link to help create markets for ethnic communities in northern and central Vietnam http://www.craftlink.com.vn/

Willa Shalit has worked to create markets in the United States for products manufactured jointly by Palestinian and Israeli women, and by women survivors of the Rwandan genocide. Fair Winds Trading has become a leading importer of handmade goods from Rwanda. http://www.fairwindstrading.com/

Patrizia Moroso has created designs made by African artisans http://themoment.blogs.nytimes.com/2009/05/19/patrizia-moroso-afrique-cest-chic/

Keith Recker has inaugurated a new magazine that promotes cultural enterprises, design and market linkages http://www.handeyemagazine.com

Dan Storper created Putumayo World Music that created a new market for cultural musicians from around the world. http://www.putumayo.com/

3. Market creating organizations

ASEAN Handicraft Promotion and Development Association promotes the traditional work of artisans in Asia http://www.ahpada.com/front/

Global Center for Cultural Entrepreneurs promotes the development of cultural entrepreneurs www.culturalentrepreneurs.org

Aid to Artisans A very clever market creation is have a Month of Artisans each year in a major grocery chain which is done in Guatemala and El Salvador www.aidtoartisans.org

Heartwear in Paris has a distinguished history of working with artisans to bring their new products in the markets. http://www.handeyemagazine.com/node/19

African Publishers Network promotes the work of publishers across the continent and opens markets. http://www.apnet.org/

IndusTree in India is creating markets and building artisan capacity through its foundation. http://www.industreecrafts.org/home.html

Many of us are cultural entrepreneurs and have created cultural enterprises and all of us who have know what it takes to be a cultural entrepreneur.

Until today, there lacked a platform to share our experiences that we may each grow and create more cultural wealth. There also lacks a forum where we can train future cultural entrepreneurs by sharing our wisdom.

Let us SOW seeds of cultural entrepreneurship across the world.

Share Our Wisdom (SOW)

An annual World Forum on Culture would bring together the leading creators, educators, policy makers, market makers, investors in the world’s cultural industries creating a platform to find solutions through partnerships formed at our gatherings that create a better world economically, socially, environmentally and culturally.

World Forum on Culture

The Global Center for Cultural Entrepreneurship www.culturalentrepreneur.orgoffers to host the first World Culture Forum in Santa Fe, NM (USA) in collaboration with the City of Santa Fe http://www.santafe.org/, the College of Santa Fe and the State of New Mexico Department of Cultural Affairs.

World Forum on Culture

Appendix

Cultural Capital

• Cultural capital can include traditions, music, skills, dress, stories, art, decorations, feasts and celebrations, food, place, dwellings (antique, historic), etc.

• Individuals carry forward traditions while communities often have a legacy of creative talent that form its cultural capital.

• Organizations, e.g., museums, libraries, performing arts, are repositories of cultural capital made available to the public.

• Educational organizations that foster cultural creativity and advance traditions build community cultural capital.

Aageson, Thomas H. “Cultural Entrepreneurs: Producing Cultural Value and Wealth.” The Cultures and Globalization Series: The Cultural Economy. Ed. Anheier, Helmut and Yudhishthir Raj Isar. London: Sage Publications, 2008. 92-107.

Cultural Enterprise

• Cultural enterprises are commercial ventures that connect creators and artists to markets and consumers. They create, produce and market cultural goods and services, generating economic, cultural and social opportunities for creators while adding cultural value for consumers.

• Cultural enterprises are both nonprofit and profit, that use business approaches; and, deploy financial, human and cultural capital (creativity, talent, cultural traditions, knowledge and intellectual property) in a strategic and entrepreneurial manner.

• Cultural enterprises are diverse in nature and size. They range from micro and SME to large firms. Cultural enterprises operate in the following fields: performing arts, museums, music, literature, publishing, film, photography, folk art, design, architecture, education, cultural and creative tourism, new multimedia, etc. They include, for example, publishing houses, production companies, photo agencies, markets, galleries or museum enterprises.

Aageson, Thomas H. “Cultural Entrepreneurs: Producing Cultural Value and Wealth.” The Cultures and Globalization Series: The Cultural Economy. Ed. Anheier, Helmut and Yudhishthir Raj Isar. London: Sage Publications, 2008. 92-107.

Contact:Tom Aagesontom@culturalentrepreneur.orgAlice Loyaliceloy@culturalentrepreneur.org

Global Center for Cultural Entrepreneurship:Fostering Economic Prosperity and Cultural Wealth

• Talented entrepreneurs drive wealth creation;• We are entrepreneur focused.

• Cultural entrepreneurs have unique opportunities and needs;• We are experts in building cultural enterprises.

• Markets drive profit opportunities;• We build toward growing cultural markets.

• Enterprise networks increase innovation and speed to market• We build clusters of cultural enterprises.

GCCE Core Beliefs

Two Examples of Economic Impact Studies

San Francisco, CA USA

In San Francisco, the arts create more than 31,000 jobs and generate $1.2 billion in economic activity every year.

The arts produce $105 million in local and state tax revenue for the San Francisco Bay Area (far more than the government spends on the arts).

Surveys report that 93 percent of parents believe that the arts are essential to a well-rounded education.

Ten million new jobs in the next decade will be in the "creative class," according to economist Richard Florida. These are jobs that involve imagination and ingenuity which are best developed by experiencing the arts.

Los Angeles, CAUSAGroundbreaking Report Shows Creative Industries are the #1 Engine of the Los Angeles Economy

Artists and Designers Drive the Largest Segment of Jobs and Sales Revenues in the Region The Los Angeles Economic Development Corporation’s Report on the Creative Economy of the Los Angeles Region showed that one million direct and indirect jobs are generated by the creative industries in Los Angeles. The creative industries surpass International Trade and Tourism. In 2005, the creative economy accounted for 894,000 direct and indirect jobs in Los Angeles County and generated 140.5 billion in sales/receipts and more than $3.4 billion in state tax revenues.

Higher Education:

Institute of Creative and Cultural Entrepreneurship, Goldsmiths College, London University www.gold.ac.uk/icce (UK)

Office of Entrepreneurship and Liberal Arts-The Program for Creativity and Innovation, Wake Forest University www.wfu.edu/creativity/about_oels.htm (USA)

Kings College London Business www.kcl.ac.uk/schools (UK)

Columbia College Chicago Art + Design www.colum.edu/Academics/Art_and_Design (USA)

Post Graduate Entrepreneurship Education: TITAN Teaterskole, The International Theater Academy www.titanorway.com (Norway)

Austin Conservatory of Professional Arts www.harttechnique.com (USA)

Education, Training and Mentorship

Associations with focus on Cultural Entrepreneurship

United States Association for Small Business and Entrepreneurship has an area for cultural entrepreneurship. http://usasbe.org/ (USA)

Arts Educators Entrepreneurship Network http://www.ae2n.net/ (USA)

ENCATC www.encatc.org (Belgium)

National Endowment for Science Technology and the Arts (NESTA) http://www.nesta.org.uk/ (UK)

Example of Artisan Entrepreneurship

Arkansas Craft School www.arkansascraftschool.com/index.html (USA)

Cultural Entrepreneurship Educational Blog

Entrepreneur the Arts http://blog.entrepreneurthearts.com/ (USA)

Example of Professional Development

Creative Skills Cornwall http://www.creativeskills.org.uk/BDP (UK)

Natverkstan, Gothenburg http://www.natverkstan.net (Sweden)

Example of Mentorship and Entrepreneur Fellows

Global Center for Cultural Entrepreneurship www.culturalentrepreneur.org (USA)

Texts:“Creating Entrepreneurship: entrepreneurship education for the creative industries”, The Higher Education Academy Art Design Media Subject Centre and NESTA, 2007

“The Cultures and Globalization Series: The Cultural Economy“, Eds Helmut Anheier and Yudhishthir Raj Isar, Sage Publications, 2008

Creative Strategies for Financing Cultural Enterprises and Entrepreneurs

Philadelphia Innovation www.innovationphiladelphia.com

Denver, COCreative Enterprise Mappinghttp://www.denvergov.org/economicdevelopment/MapofDenversCreativeEnterprises/tabid/385865/Default.aspx

Arts Funding through a Quality of Life Taxhttp://www.colorado.gov/cs/Satellite/OEDIT/OEDIT/1167928218425

Oregon Cultural Trust supported by the people of Oregonhttp://www.culturaltrust.org/home/index.php

Future Jobs Fund (UK) L1 billionhttp://campaigns.dwp.gov.uk/campaigns/futurejobsfund/

The Foundation for the Culture of the Future (Sweden)http://www.culturalpolicies.net/web/sweden.php?aid=71

Investing in Our Cultural Enterprises and Entrepreneurs

“Investing in Creative Industries? A guide for local authorities”http://www.idea.gov.uk/idk/aio/11169467 Excellent checklist

Aspen Network of Development Entrepreneurs ANDE (USA)http://www.aspeninstitute.org/policy-work/aspen-network-development-entrepreneurs Coalition of organizations, foundations and individuals investing in entrepreneurs in the developing world

Fast Forward Youth Investing in Youth for Global Change<http://www.fastforwardfund.org/>

Creative Capital supporting American artists (USA)http://creative-capital.org/

PULSE/IRIS Project A high impact method of measuring how investments in cultural enterprises make a differencehttp://iris-standards.org/

Advantage Creative Fund A West Midlands (UK) venture capital fund to invest in creative industries www.advantagecreativefund.co.uk/acf-index.php?id=244

Polyphonic Venture Capital Fund for Music (USA)http://www.nettwerk.com/node/989

Enterprising Non Profit Program (Canada) Building a marketspace for social capitalwww.socialfinance.ca

Allegheny, PA Regional Assets districts (USA) Support and finance regional assets in the area of culture and sports from a share of sales tax. http://www.radworkshere.org/

ENDEAVOR Make investments and build capacity in high impact entrepreneurs around the work. http://www.endeavor.org/

Detroit Community Foundation Matching grant initiative online was oversubscribed 2009 (USA)http://blogpublic.lib.msu.edu/index.php/2009/08/16/community-foundation-of-southeastern-mic?blog=51

BilateralVietnam and Denmark joined together to invest in Vietnam’s cultural industries http://www.ambhanoi.um.dk/NR/rdonlyres/2027A055-57EB-484D-AC8A-63DCBE09B087/0/2ArtsEducationComponentFinal.pdf

USAID They have made investments in artisan enterprise development in Ghana, Peru, southern Africa, Haiti, and Mexico. www.usaid.org

MultilateralInter-American Development Bank They have made their first three investments in cultural industries: Columbia, Ecuador and Panama http://www.iadb.org/

National Programs Endowment for the Arts (USA) Social Innovation Fund http://www.whitehouse.gov/the_press_office/President-Obama-to-Request-50-Million-to-Identify-and-Expand-Effective-Innovative-Non-Profits/

Thomas H. Aagesontom@museumfoundation.orgtom@culturalentrepreneur.orgMuseum of New Mexico FoundationPOB 2065Santa Fe, NM 87504 USA505-982-6366

This presentation is available for download at www.slideshare.net Search “Aageson”