creative economy boot camp; amman, jordan

Cultural and Creative Industries Training Jan 25th 2015


Day IV 1It’s all about money, stupid!

Rene Kooyman

OASIS 500 Boot Camp Amman


Defining target groups:the sociological imagination

• Individual and collective behaviour: Durkheim

• Western society: social inequalities, class structures

• Basic dimensions for inequality


Class structure USA

• Social class stratifies people according to income, prestige, and power

• It intersects with stratification by gender, by race, education and by ethnicity


Intertwining effects


Type of Explanationof Inequality

Structure

Functionalism(Durkheim and

others)

Conflict(Marx and

others)Culture(Weber and

others)

Individualist(Common idea)

Explanation of Inequality

Objectivists

Subjectivists


Economical/Cultural Capital

Economical Capital

CulturalCapital

High Low

High ‘Old’ money:Aristocracy, Wealthy families

Teachers, Students, Journalists, Artists

Low ‘New’ money:ICT, Telecom, Energy Comp

Unskilled working classUnemployed


Class, Lifestyle and Power

Pierre Bourdieu:

• Existence of Social class is a basic social fact

• We live in a high stratified class society continuously, based on economic capital and cultural capital

Habitus (plural: habitus): Components:

• ways of thinking / ways of acting

• bodily habits

• tastes: likes and dislikes

Whole way of life / lifestyle: each space takes his/her habitus as THE legitimate one

• Society based on Distinction; being different


Cultural Capital Economic Capital

Cultural bourgeoisie High Intermediate

e.g. artists, academics

Business bourgeoisie Intermediate High

e.g. company directors

Upper professionals Intermediate to high Intermediate to high

e.g. lawyers, higher

civil servants

Lower middle class Intermediate to low Intermediate to low

e.g. primary school

teachers, nurses

Working class

Skilled Low to intermediate Low to intermediate

Unskilled Low Low


Cultural inequalities: distinction

High and low culture;

‘real’ art / popular culture

‘professional’ and ‘amateur’ art

Cultural dimensions:

Local and global culture

Cultural, Social & Economic Capital:

• Economic capital: command over economic resources (cash, assets)

• Social capital: resources based on group membership, relationships, networks

• Cultural capital: forms of knowledge; skill; education; any advantages a person has which give them a higher status in society, including high expectations


Positioning

You?

Cultural Capital

Economical CapitalSocial Capital


Why are artists poor?Descriptives• Vocation: willingness to accept low

income• At the same time mental support of

society• No link quality/price?• Aesthetic value = social value• Government encourages

‘experts' = interference in the market• Ideology: Artist = unselfish


Six explanations

1. Personal gratification, recognition and status more important than money

2. Artists poorly informed about incomes needed

3. Government Grants deliver more Artists, not a higher income

4. Artists rely on other sources of income

5. Cuts in labor (higher productivity) not taken place in the arts

6. Myth of the individualistic Artist prevents organized pressure groups (trade unions)


Intellectual Property• Copyrights: Copyright is the exclusive right granted

by statute to the author of the works to reproduce dramatic, artistic, literary or musical work or to authorize its reproduction by others (globally regulated; TRIPS/WIPO)

• Trademarks: Trademark means any symbol, logo, or name used to enable the public to identify the supplier of goods. Trademarks can be registered, which gives the holder the exclusive right to use them. Manufacturers, distributors, or importers may register them. They can be sold and are an important form of commercial property.


Intellectual Property Rights (IPR)

• Moral argument: “every man has a property in his own person” (Locke); the natural right

• Economists view: 1. intellectual property rights and patents create income

2. artificial scarcity through a monopoly on various products restricted output and higher prices

• Libertarian view: anything that one produces, with their own hands and/or with their own capital in collaboration with their creative mind, is their exclusive property. But once ready to be sold subject to the free market competition, unhampered by claims of intellectual property rights.


IPR Criticism• IPR it should be rejected altogether, because it systematically distorts

and confuses the market, its use is promoted by those who gain from it.

• Analogy with physical objects fails; physical property is generally rivalrous, while intellectual works are nonrivalrous (if one makes a copy of a work, the enjoyment of the copy does not prevent enjoyment of the original)

• Fundamental tension: It hampers human rights of cultural participation and scientific benefits

• article 27 Universal Declaration of Human Rights: “Everyone has the right to the protection of the moral and material interest resulting from any scientific, literacy or artistic production of which he is the author”

• and that “Everyone has the right ...... to share in scientific advancement and its benefits”.


Moving ahead….

• Digitization and globalization

• Understanding Creative Commons

• A tool for Creators, Content Sharing, Publishers

• Standardized way to keep their copyright simple

• Provides various kind of License http://creativecommons.org

http://creativecommons.org/


Choices

Simple questions when choosing a license:

• Do I want to allow commercial use or not?

• Do I want to allow derivative works or not?

• If Derivs; make that new work available under the same license terms; “ShareAlike”


LicensesAttribution CC BY ; lets others distribute, remix, tweak, and build upon your work, even commercially, as long as they credit you for the original creation; maximum dissemination and use of licensed materials.

Attribution-ShareAlike CC BY-SA ; lets others remix, tweak, and build upon your work even for commercial purposes, as long as they credit you and license their new creations under the identical terms.

Attribution-NoDerivs CC BY-ND ; allows for redistribution, commercial and non-commercial, as long as it is passed along unchanged and in whole, with credit to you.


What can I afford to lose?

• Time

• Long Term Savings

• Windfalls

• Liquidated assets

• Home equity

• Loans from Friends and Family

• Credit card status


Banks and investors

• Banks are in the business for money

• Trends: Liberalization, deregulation, technology (virtual money: Internet, online banking, transparency)

• Internationalization: sharing risks and opportunities


How to raise money?

• Personal networks (private and professional) and qualities

• External capital:• Banks and Funds

• Private capital/equity (shares), friends and family

• Investors: securities, trust!

• Subsidies

Mind:

• Gap investments / profits

• Risks: start-up / established initiatives


Minimum: break even

• Calculate your annual income: minimum / modal

• Overhead: social security, health insurance, pension schemes

• Entrepreneurial costs/overhead: • Material costs

• The office/venue

• Equipment

• Office infrastructure

• ICT, heating, electricity, etc.

• Financing costs; short / long term


That’show money is made !

It’s all about money, stupid!

Annual income…??

creative economy boot camp; amman, jordan

Small Business & Entrepreneurship

de habitus

cultural inequalities

de tweedeling

de wereld

de manier

de maatschappij

de wijze

likes and dislikeswhole