Towards more efficient financial ecosystems
Innovative instruments to facilitate access to finance for the cultural and creative sectors (CCS) open method of coordination (OMC) working group of EU member states’ experts on cultural and creative sectors : good practice report, executive summary
In an economy increasingly reliant on creativity and intangible assets, the cultural and creative sectors (CCS) are among the fastest-growing. However, most CCS Small and Medium-Sized Enterprises (SMEs) face difficulties in accessing finance and this is one of the main obstacles to their growth. Because of the intrinsic characteristics of CCS activities (including a lack of tangible assets, dependence on intangible assets, the consequent lack of collateral and highly uncertain market demand), creative SMEs seeking finance from private banks are likely to be turned down. The financier community..., including banks, still seems to have a limited understanding of these characteristics. The CCS also face challenges in the form of a fragmentation of financial instruments, information asymmetries within the financial ecosystem, lack of information on available sources of funding and issues around the valuation of intellectual property (IP). This report addresses these challenges, sets them against the background of innovative funding schemes made available to the CCS in the Member States and provides recommendations on overcoming the main bottlenecks. A set of 32 success stories is presented to illustrate how innovative funding can match CCS companies’ needs.
- Corporate author(s): Directorate-General for Education, Youth, Sport and Culture (European Commission) Themes: Culture
- Subject: artistic creation, cultural pluralism, cultural policy, cultural promotion, cultural relations, culture industry, EU Member State, EU policy, EU programme, financing, small and medium-sized enterprises