Creative businesses face ‘analysis gap’

From video games developers to firms of architects, creative businesses of all kinds struggle to get adequate financing due to a misconception that they cannot be analysed systematically, claims a new report. The study comes from the Centre for Creative Business (CCB), a joint venture between London Business School and University of the Arts London.

‘It is high time investors and creatives learnt to understand each other,’ says Greg Orme, chief executive of the CCB. ‘Cool-headed commercialism can and should sit side-by-side with rampant creativity.’

The report makes the case for a ‘common language’, using the same tools to evaluate creative businesses as used in other sectors. Firms are urged to craft a convincing value narrative that articulates risks and returns and explains how value will be created and measured.

In addition to considering the value of content, the study adds, companies should take account of their brand value and the ways in which they manage and motivate talent.

The creative industries grew six per cent per annum from 1997 to 2002, double the average of the whole UK economy. They add £21 billion to London’s output, compared to £35 billion contributed by the City.

The report Creative Business: Crafting the Value Narrative is sponsored by media lawyers Harbottle & Lewis.

Marc Barber

Marc Barber

Marc was editor of GrowthBusiness from 2006 to 2010. He specialised in writing about entrepreneurs, private equity and venture capital, mid-market M&A, small caps and high-growth businesses.

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