Creative industries need financial support to improve region’s economy
Yorkshire’s growing expertise in the creative industries can play a key role in steering the region’s economy out of a recession if it receives sufficient financial support, according to a latest survey.
Creative industries in Yorkshire and Humber, which includes design, software, and publishing companies, have enjoyed significant growth in the last five years with a combined turnover of £11billion.
In the region there are some 23,000 companies in this sector - a growth rate of 23 per cent since 2006 - with approximately 90 per cent employing less than 10 people.
To help continue the growth, the need for appropriate sources of finance and investment has increased. A recent survey looked at ways to specifically address the finance needs of the creative industries in Yorkshire and Humber.
The research included a review of the sector, methods for interacting with the creative industries as well as the growth and future potential for investors going forward.
It highlighted a need for more sector specialist mentors and business advisors to identify the types of investment available and the means by which investment may be used to grow a business.
The findings also suggested for investors to work more closely with broad based business development organisations, such as Yorkshire Forward and Business Link Yorkshire, sector specific organisations including Screen Yorkshire, Game Republic, the Creative Industries Development Agency, Inspiral and Creative Sheffield as well as leading sector organisations such as Just-B, QUBA and Zoo Digital.
The report added: “There are now a greater number of profitable, substantial businesses with the management expertise to successfully manage the growth and return on investment that investors require in return for their investment.”
Companies in the £300,000-£750,000 turnover range were identified as one particular area of need which would benefit from a concerted joint effort and provide a focus for harnessing both equity and loan methods.
It recommended existing activities in micro-finance could be extended through improved connections to a wider range of sector development organisations. And as the number of larger firms increases, the scope for larger scale equity and loan investments will improve.
Note: this news article is from Finance Yorkshire’s previous fund. Read more about Finance Yorkshire