The next steps in growing the UK’s creative industries

Abstract

The UK’s creative industries are growing at four times the rate of the wider economy. British creative products are exported all over the world and politicians often celebrate the great success of our creative sector. Yet, despite this commercial success, there is a significant inequality of access for aspiring creative entrepreneurs and those looking to build and scale up their small businesses. Market failures in the private sector and limited public finance options means that opportunity is weighted towards those with strong networks and personal funds. This paper describes the market failure that is restricting small business growth in the creative industries, and shows how it is more overt in England’s regions outside of London and the South-East. The example of Silicon Valley is used to make the case for a public sector approach to financing creative businesses at early stages of their growth, arguing that mission-led finance is key to building inclusive growth and regenerating cities and towns through the cultural and creative industries.