Entrepreneurship in the Creative Industry

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ENTREPRENEURSHIP IN THE CREATIVE INDUSTRY

Branko Ćirić MBA[1] and Marko Trmčić[2]MA, Asst/Prof Snežana Trmčić PhD[3]

Abstract

Economies of developed countries rely heavily on small and medium enterprises, characterized by a high level of entrepreneurship. For that reason, governmental economic planners focus on creating an economic environment within all industries which will allow SMEs to develop easily and freely. However, entrepreneurship in Serbia and in most Western Balkan countries primarily refers to production and service activities of the real sector and much less to creative industries. It faces insufficient knowledge of the potential of these industries which achieved the highest continual growth rates both in revenue and in number of employees in developed western countries and are always looking for additional qualified staff. Furthermore, creative industries' products and services from these countries are becoming very important export items. The impact of creative industry is visible not only in the results achieved, but also in the attention of the most important global institutions such as UNDP, UNCTAD, World Bank - that it attracts. Statistical indicators from the United States, used in this paper clearly show the type of results which can be achieved by the creative industry if the government is willing to help its development. Entrepreneurship has a particularly important place in the creative industry given that it is a largely based on the creativity and initiative of individuals. Along with the film and music industries, which - due to their very nature and the number of consumers - reach huge incomes, creative industries include specific vertical segments that will peak in the coming years. They are primarily related to the development of computer animation and interactive television. This is why economic planners of the Western Balkan countries should dedicate far greater attention to the creative industry which should also be taken into account in the long-term planning of educational systems. A creative industry requires much less investment for new job creation, which usually represents the biggest obstacle to faster economic development in these countries. These industries partially rely on both cultural heritage and cultural tourism, which by their nature entail a development of numerous other industries, such as transport, construction, food processing, textiles and others yet. In order to encourage the development of creative industries best practices from the European Union should be used, and particularly from Great Britain, where the creative industry accounts for a significant percentage of the GDP, as well as in the foreign trade balance.

Key words: Creative industry; entrepreneurship; economic development;

Introduction

Broadly speaking, creative activities appeared at the dawn of civilization when, regardless of the permanent struggle for survival, people found the time to be creative and express themselves. Many artifacts show that ancient civilizations developed by encouraging creativity in fulfilling everyday necessities, as well as in the construction of monuments, some of which are now listed as priceless human heritage. From that aspect, it could be said that creative industries have always existed, but the term "industry" implies organized mass production and thus correlates their origin more particularly to the modern era.

The phrase "creative industries" first appeared in the document „Creative Nation“ in which the Australian Government addressed the potential of cultural industries. Later on, the term became widely accepted by members of these industries as well as by the general public. Subsequently creative industries have become a duly recognized economic sector in government plans - capable of generating a significant share of the Gross national product with a modest investment.

The aim of this paper is to highlight the importance...
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