Creative industry ‘ restricted by lack of understanding’
Creative businesses are being “held back by short- sighted investors who are failing to spot their value and potential for growth”, according to the head of Creative England, a specialist investor in the industry.
Caroline Norbury’s comments come as a new report on the impact of Creative England’s five- year funding programme for the sector shows that 96 per cent of companies where Creative England took an equity stake increased their market value by 45 per cent.
However, the report published today by The Good Economy, a specialist advisory firm, says most cre- ative businesses are excluded from accessing the money they need in order to scale because of a lack of clarity amongst mainstream financers over risk versus reward. Creative England has so far invested £ 20m, around £ 4m a year on average, to 350 creative businesses. Caroline Norbury MBE said: “Creative industries contribute a whopping £ 92bn to the UK economy, yet the sector is nowhere near reaching its full potential.”
She added: “They are ripe for success but they are being held back by short- sighted investors who are failing to spot their value.”