Art will no longer be a non-profit business. This is a firm belief among the supporters of the new direction of economic activity – the “creative economy.” On September 22, Ukrainian and international experts in this field had gathered at the first international forum entitled “Creative Economy – a Ukrainian Startup.” The conference was dedicated to the problems of creative industries development in Ukraine and to the foreign experience of successful similar projects.
The program was opened by Ragnar Siil, coordinator of the European Commission on Cooperation between the Creative Industries of the EU and a business consultant, who made a presentation on the ecosystem and the development of the creative economy at the macro level. “European statistics indicates that 50 percent of people are working in the cultural and creative industries. Half of them have an education in the creative industries the others are there because they have creative ideas,” he said. According to Siil, the industry has the potential for economic growth, and more added value and job created through the production and use of intellectual property. This is the capital that can be used in creative economy.
Siil cited Estonia as an example; he was the first to promote the idea of the creative economy in this country. “Estonia, a post-Soviet country, has almost 5 percent of the population involved in the creative industries. This is a large figure. In total, 11.4 percent of all Estonian companies are creative businesses. Every four years we evaluate the creative industry in the country. From 2007 to 2011 this industry had reached the 44-percent growth rate. This means that more people who have the relevant knowledge, skills, and talent are trying to build their businesses,” he said.
Also, the speaker shared his research on the creative industry potential in Ukraine. “Now it is necessary to understand that Ukraine is absolutely saturated with fantastic ideas and people. The only problem is the lack of ecosystem, which could have realized this potential. It is very difficult for people to put their creative skills and talents to a good use,” indicated the business consultant.
Another problem that also applies to Ukraine, in his opinion, is that culture and creativity are considered areas of spending rather than making money; they are believed to live on subsidies and grants. “The basic principle of the creative industry ideology, which you would want to convey to all the politicians, is that culture and creative economy should be regarded as a source of income. It is not part of the problem; it is a part of the solution,” asserts Siil.
What can develop the potential of the creative industry in Ukraine? “We have found that the society must have something special, which will give the impetus to develop the creative industry, as well as an understanding of your place and potential,” commented Siil. Therefore, according to the business consultant, first you need to create your own strategy, which may resemble those of other countries, but should not be a direct copy – among other things, different economic factors should be taken into account. “This means that we must apply some effort in order to attract people from universities and businesses. One cannot develop the creative industry without the cooperation of other sectors. Your culture minister must work with the ministers of economy and foreign affairs. Someone should assume the responsibility for the development of the creative industry in your country,” added he.
The next step is informing the public. People are not aware yet of this trend, and potential entrepreneurs do not know yet how to create added value in this field of business. The motivation and the infrastructure are no less important elements as well. “In Ukraine there are so many vacant buildings, which the government does not know what to do with. They should just be given to creative people, and they will find a solution. The most successful stories are written in such places,” explains Siil.
Also, one should not forget about funding. For example, a cultural institution in Estonia keeps all its profit for itself. Thus, the staff is more motivated to turn profit and improve their activity. “One also needs to create a network. Creative businesses are usually small businesses. If you’re successful and get a lot of orders, of which you cannot possibly satisfy everything, you would need some companies that work in the same direction and can satisfy the excess demand,” adds the business consultant.
The creative industry at the micro level had been explained by David Parrish, business coach with years of experience who has worked with companies and government organizations in more than 30 countries, and also the author of the T-Shirts and Suits bestseller, which had been translated into Ukrainian. “Some believe that creativity and business are opposites, and that there is a conflict between them. While I agree that there are some contradictions between them, my experience suggests they can well be combined to generate a commercial success,” said Parrish. “The belief that a good artist must be poor, and that if the artist sells their paintings, they are selling their soul to the devil is deeply entrenched into the minds of many.”
As an example, David cites his own experience with opening a bookstore. “We created it to satisfy the cultural goals and when it started to make money, we felt embarrassed. And when I became interested in the business and development, I realized how useful and necessary this thing is,” he explains. “When your ideas acquire the material form, they become the intellectual property and obtain some value.”
“You have many creative talents. You have no shortcomings in terms of the creative talent. That’s why you are already halfway through this path. But this is not enough. You need to help people in becoming creative entrepreneurs – sculptors or artists are not always skilled in selling their work. Therefore, a support system for books, materials, canvases should be established. You need to help people understand the business, to help them define the concept of success and apply business methods to achieve it. And that can be done through workshops and presentations. The process is already unfolding in the UK, and helps the country grow. This is consistent with the goals and values of creative enterprises,” concludes Parrish.
Moreover, a special program has been launched on the EU level to support and develop the creative industry in Ukraine since July, entitled “EU – Eastern Partnership.” The program with a budget of 4.2 million euros will continue for three years in Ukraine and other countries – Armenia, Azerbaijan, Belarus, Georgia, and Moldova. “We believe that the program for the development of culture is essential to modernize this sector and fill a gap that might occur in the areas the Ministry of Culture ignores; the program will contribute to the dynamic development of culture,” said Terry Sandell, head of the program, a senior adviser at the Oxford University College, an expert of the National Commission for UNESCO.
The program consists of four components. The first is the study of cultural indicators and the establishment of a work plan. The second is the establishing of the necessary infrastructure. The third is to define the leaders in the field of culture, which play a significant role in the development of European culture in general. According to Sandell, Ukraine still has some problems in this regard, because there are no joint efforts of the Ministry of Culture and prominent cultural figures. The fourth stage is communication and promotion.
The last speaker of the forum was Serhii Khromov-Borysov, one of the leading coaches in the post-soviet countries who are proficient in business model design. He spoke to forum participants about bridging the gap between technical and social creativity.
In particular, he asserted that a strategy should be conceived in order to build a successful creative business in Ukraine. For this purpose, according to Khromov-Borysov, one needs to explore the demand of the audience and find a solution to a particular problem. He also spoke about foreign techniques of audience research and their effectiveness, and demonstrated some American experience in this regard.
The forum has also held a discussion panel, which was attended by Volodymyr Nechyporuk, General Producer of Ukrainian Fashion Week; Iryna Zolotariova, professor of information systems in Simon Kuznets Kharkiv National University of Economics, a member of the national team of experts in the field of higher education ERASMUS+, project coordinator of TEMPUS and ERASMUS+; Maria Fronoshchuk, head of development of the Internet publication Platform; Serhii Shustov, representative of CEO WIFI BAR Ukraine; and Kostiantyn Kozhumiaka, president of ArtHuss, founder of the platform for creative economy CHERNOZEM.
