Meet the creative economy, a new business trend!
It is wrong to think that the modern economy only deals with numbers and data and does not value the different human capacities. On the contrary, there is a point that has been highly valued by the market, which is ‘the creative economy’. This trend occurs because the way of producing and consuming has changed abruptly in recent years.
Creativity is the ability to invent, create or produce novelties. And production and consumption in today’s world goes through this creativity phase. The companies which follow this concept have conquered more and more space and put into practice that creative movement, which is increasingly human, alive and collaborative.
What will you read in this article?
Brief history of the creative economy
This thought of this format was publicly cited for the first time in 1983, in the United Kingdom by Prime Minister Margaret Thatcher. In his speech, he acknowledged that investment in the areas of technology and creativity was important for the economic growth of the United Kingdom.
The matter was cited again in 1994, almost 10 years later, in Australia. The prime minister of the time, Paul Keating, published public policies aimed at culture. British Prime Minister Tony Blair also gave due importance to this issue and included it in his government plan during his campaign a short time later.
Today, two decades after the 90s, the creative economy has already become a reality for companies that want to stand out in the market.
What is the creative economy?
According to John Howkins, the English professor who created that term, the creative economy can be defined as “an activity in which individuals exercise their imagination and explore its economic value”. This extract can be found in his book “The Creative Economy: How People Make Money from Ideas”.
According to the author, the creative economy encompasses processes that involve creation, production and distribution of products and services. For this, it uses knowledge, creativity and intellectual capital as the main productive resources.
Which means, the creative economy is all types of businesses formed by the creativity. However, for something to be called a business, it needs to generate an economic value. This economic model includes the creation, production and distribution of goods and services that use creativity, culture and intellectual capital as raw material.
Howkins sets the creative economy on eight great pillars. These are: fashion, performing arts, architecture, literature, design, audiovisual, arts and cinema.
Investing in creativity
Creativity can and must be very productive. The goal should no longer be the number of hours worked, but the quality of what is done during work time.
For a company to operate in accordance with the principles of the creative economy, it must increase investments in the area of education and training. This is because the most motivated and qualified collaborators are more likely to share their ideas with the group. And that sharing is part of the philosophy of the creative economy.
Some of the essential factors of the creative economy are: investments in social inclusion, sustainability, innovation and diversity. A company that offers these characteristics in its daily routine already has an advantage over the competition when it comes to retaining its main talents.
In summary, companies that invest in creative solutions contribute to the improvement of society and have more motivated employees. How to do that? Investing in the creativity of its collaborators. How? Through processes, training and employee development projects.
Why is it a growing market?
Because the creative economy transforms. Creative professionals generate non-monetary value for products and services. Also, constant innovation and competitiveness among companies increases the search for creative professionals. It is important to highlight that one of the greatest points of the creative economy is finding “out of the box” solutions for common problems, resulting in better services and products.
According to the International Labor Organization (ILO), the annual growth of the market that involves the creative economy should be around 10% to 20% in the coming years throughout the world.
What are the main objectives of the creative economy?
Among its goals, the creative economy aims to achieve the following points:
- The valorization and promotion of cultural expressions;
- The guarantee of the socio-economic development of the activities;
- Stimulate creative endeavors and drive innovation in every way.
A company has the duty to stimulate these actions and value the unique capabilities of each collaborator. Understand the talents of each one and make creativity come out.
Creative economy: the economy of the 21st Century
It is necessary to accept that this model of economy is already seen as the economy of the 21st century. Because 21st century is the time when the traditional patterns have begun to break. Entrepreneurship (such as startups, for example) and individual creativity are also highly valued.
Taking that motto seriously, it is important to highlight that creative businesses have purposes that go beyond the benefits.
What is your opinion about the creative economy? Do you think it’s a good way to start? Share your ideas with us!