Cre­ative in­dus­try ‘ re­stricted by lack of un­der­stand­ing’

Yorkshire Post - Business - - BUSINESS / NEWS -

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.”

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