Download as pdf or txt
Download as pdf or txt
You are on page 1of 8

See discussions, stats, and author profiles for this publication at: https://www.researchgate.

net/publication/320383157

Introduction to Cultural Entrepreneurship: Cultural Entrepreneurship in


Developing Countries

Article in International Review of Management and Marketing · January 2017

CITATIONS READS

20 2,670

2 authors:

Mohamad Taghi Toghraee Mahsa Monjezi


University of Tehran 2 PUBLICATIONS 24 CITATIONS
17 PUBLICATIONS 149 CITATIONS
SEE PROFILE
SEE PROFILE

All content following this page was uploaded by Mohamad Taghi Toghraee on 13 October 2017.

The user has requested enhancement of the downloaded file.


IRMM 5266 toghraee okey

1 1
2 International Review of Management and 2
3 3
4 Marketing 4
5 5
6 ISSN: 2146-4405 6
7 7
8 available at http: www.econjournals.com 8
9 9
10 International Review of Management and Marketing, 2017, 7(4), 1-7. 10
11 11
12 12
13 13
14
15
Introduction to Cultural Entrepreneurship: Cultural 14
15
16 Entrepreneurship in Developing Countries 16
17 17
18 18
19 19
20
Mohammad Taghi Toghraee1,2*, Mahsa Monjezi3 20
21 21
22 Faculty of Research Excellence in Art and Entrepreneurship, Art University of Isfahan, Isfahan, Iran, 2Faculty of Entrepreneurship,
1
22
23 University of Tehran, Iran, 3Department of Management, Abadan Branch, Islamic Azad University, Abadan, Iran. *Email: 23
24 m.toghrayee@ut.ac.ir 24
25 25
26 ABSTRACT 26
27 Up to now, no evaluation has been made about crucially main impacts of entrepreneurship and entrepreneurial approaches to the support of creative
27
28 and cultural economy in developing countries. Great potentials of cultural industries are not still utilized, and no attention is made to them regarding 28
29 economic profitability. The most crucial determinants of inappropriately competitive conditions concerning innovation in developing countries, which 29
30 require global help, are education issues, poverty, and lack of related institutions. Moreover, a continuum of cultural productions is delicate. There are 30
31 weak steps and stages for promotion, branding, distribution, and ownership support of cultural productions due to not only lack of integration but also 31
32 a lack of artists’ knowledge about these processes. This study examines the role of cultural entrepreneurship in the sustainability of artists and creative 32
33 organizations. The following questions are addressed accordingly: To what extent can cultural entrepreneurship capacities act as a determinant for the 33
34 development of artists and artistic areas of activities; Is this phenomenon definable and learnable; How can cultural and artistic values be understood 34
35 by entrepreneurial capacities in a cultural context. Entrepreneurship of cultural and creative industries combines two independent trends: Art as a 35
36 content-based and immaterial value and entrepreneurship as a supporter of immaterial values. By this basis in mind and the social responsibility of 36
entrepreneurs, cultural entrepreneurship can run a cultural and creative organization, carry out a strategically cultural mission, face risks to the creation
37 37
of balance between managerial values and innovation and make a contribution to critical infrastructure.
38 38
39 Keywords: Creative Economy, Cultural Values, Creative Industries, Cultural Industries, Cultural Entrepreneurship 39
40 JEL Classifications: M21, Z110 40
41 41
42 42
43 43
44
1. INTRODUCTION for the proper understanding of creative and cultural industries’
44
properties (Toghraee, 2017). Despite the change of artists’
45 45
Culture and creativity are of great significance as an engine of economic understanding about a merely artistic business creation, there is still
46 46
growth in the postindustrial world (Abbing, 2016). Areas of culture a big gap between cultural areas and innovation properties in one
47 47
and art increasingly and rapidly growing, as compared with other hand and entrepreneurial dimensions on the other hand (Toghraee
48 48
areas of the economy (Klamer, 2011, Abbing, 2016). This area creates et al., 2017b). The growing relevance of entrepreneurship in the
49 49
very distinct and skilled employment opportunities and facilities. arts and culture sector is closely related to the emergence of the
50 50
Entrepreneurship in the cultural and creative industry means creating creative industries starting in the 1990s in Great Britain (British
51 51
creative ideas and pursuing them within business path for profitability Council, 2010). Those industries comprise i.e., the art, architecture,
52 52
(Wilson and Stokes, 2012). Nevertheless, this entrepreneurship does press and book market, performing arts, the music and film sector,
53 53
not focus only on profitability. Rather, the main aim is innovation and and the software and games industry (e.g., Caves, 2000; Phillips,
54 54
probability of a new object creation. Entrepreneurship dimensions can 2011).There are different entrepreneurial motivations in cultural
55 55
be combined with innovation areas (Toghraee et al., 2017a). and creative industries on different persons and different cultural
56 56
and creative organizations. Conflicts between artistic-cultural
57 57
Cultural entrepreneurship concept was formally confirmed in the business and entrepreneur are caused by cultural values (Toghraee
58 58
previous decade, and different models were formed as a means et al., 2017). In recent decades, the globally creative economy has

International Review of Management and Marketing | Vol 7 • Issue 4 • 2017 1


Toghraee and Monjezi: Introduction to Cultural Entrepreneurship: Cultural Entrepreneurship in Developing Countries

1 considerably grown in a way that cultural industry is regarded by defined by integrating creative and culture consents to a small 1
2 as the fifth large economic industry after financial industries, extent (Toghraee et al., 2017). About the significant economic 2
3 informational industries, medicine, and tourism (Silern, 2013). role of creative and cultural industries in gross domestic product, 3
4 the entrepreneurial area of this activity is crucially required to 4
5 Although the creative economy is not seriously discussed in most be defined. For supporting this area and examining different 5
6 undeveloped countries, they have a rich culture (Toghraee et al., determinants of cultural and creative entrepreneurship, this 6
7 2017b). Due to lack of financial resources, cultural infrastructures, should be done. Cultural entrepreneurship concept was formally 7
8 and institutional capacities, creative economy relatively has not confirmed in the previous decade and different models (e.g., Essig, 8
9 room for promotion and progress. A large number of artists do not 2015; Hausmann, 2010; Klamer, 2011; Lounsbury and Glynn, 9
10 know how they can supply their products to markets (Barrowclogh 2001; Preece, 2011; Scott, 2012; Wilson and Stokes, 2006). Were 10
11 and Kozul-Wright, 2008). Nevertheless, professionals (for formed as a means for the proper understanding of creative and 11
12 example Hagoort, 2003, Klamer, 2011, Abbing, 2016), believe that cultural industries’ properties. Accordingly, a shared definition of 12
13 growth and development of cultural industries play a significant cultural and creative entrepreneurship was offered. 13
14 role in the economy of developing countries and sustainability 14
15 of traditions and cultural values. Therefore, a large number of Despite the change of artists’ understanding about a merely 15
16 studies examine how they can enhance the effectiveness of artistic artistic business creation, there is still a big gap between cultural 16
17 areas. Specifically, they put forward suggestions such as the areas and creative properties in one hand and entrepreneurial 17
18 offer of proper loans, training of managerial skills, etc. The most dimensions on the other hand (Toghraee et al., 2017b). There are 18
19 well-known proposal is the training of cultural entrepreneurship probably different entrepreneurial motivations in cultural and 19
20 apprentice. The main aim of these courses is the training of creative industries on different persons and different cultural and 20
21 entrepreneurial skills (Hausmann and Heinze, 2016) in a way creative organizations. Cultural and creative entrepreneurship 21
22 that artists can successfully promote their creative productions. often concentrates on the priority of cultural value of innovation 22
23 A cultural entrepreneur has a perspective for the establishment and a slight tendency towards economic value (i.e., it is creative- 23
24 of a cultural organization and enthusiasm for getting access to based) while entrepreneurship primarily focuses on economic 24
25 resources, persons, and customers (Klamer, 2012). Artistic areas productivity as compared with a cultural value (i.e., it is 25
26 often lack this relationship, and subsequently, artists cannot run growth-based). This conflict suggests that supports should be 26
27 a creative business. explained depending on the organizational nature and the related 27
28 infrastructures (Preece, 2011). 28
29 29
Up to now, no evaluation has been made about crucially main
30 Cultural and creative entrepreneurs are significantly associated 30
impacts of entrepreneurship and entrepreneurial approaches
31 with their context of entrepreneurial activities (Preece, 2011; 31
to the support of creative and cultural economy in developing
32 Scott, 2012). Process of producing new products in creative 32
countries. (The main aim of this study is examining the role
33 industry are often defined within networks and clusters … and 33
of cultural entrepreneurship in the sustainability of artists
34 this knowledge sharing as accumulation of creative process is 34
and creative organizations (Toghraee, 2017). The following
35 one of crucial properties of this process (Florida, 2004). As a 35
question is addressed accordingly: To what extent can cultural
36 system of communication between employees and networks, it 36
entrepreneurship capacities act as a determinant for the
37 implies that entrepreneurs carry out their activities within informal 37
development of artists and artistic areas of activities). Initially,
38 frameworks, flexible behavioral norms, open access, and lack of 38
entrepreneurship (entrepreneur) concept should be clarified. And
39 dependence on a certain space (Toghraee et al., 2017). As a result, 39
40 the following questions should be answered: Is this phenomenon 40
definable and learnable? How can cultural and artistic values be they carry out their activities in multiple spaces or multiple times
41 (Phillips, 2011). It may be discussed that entrepreneurship is 41
42 understood by entrepreneurial capacities in a cultural context? 42
not in conflict with activities and strategies of networks creating
43 43
aesthetic products and forms their exact existence (Toghraee et al.,
44 2. CREATIVE AND ARTISTIC 2017). Considering that creative industries are actively dependent
44
45 ENTREPRENEURSHIP 45
upon the established networks, clusters, and knowledge, cultural
46 46
entrepreneurship scholars analyze special entrepreneurship
47 Cultural entrepreneurship is a relatively young research field 47
activities when they form a framework in the cultural economy
48 48
within entrepreneurship research (Hausmann and Heinze, 2016). community (Konrad, 2013; Kavousy et al., 2010; Essig, 2015).
49 49
Entrepreneurship in the cultural and creative industry means
50 50
creating creative ideas and pursuing them within business path for In the recent decade, creativity and culture were keywords of world
51 51
profitability (Wilson and Stokes, 2006). This entrepreneurship does economies such as a large number of postindustrial countries.
52 52
not focus only on profitability. Rather, the main aim is creativity and Although there is a general tendency towards the relationship
53 53
probability of a new object creation. Entrepreneurship dimensions between creativity and culture and economic development, the
54 54
are combined with innovation areas (ordered construction, a exact concept of industry and culture or cultural industries is
55 55
traditional economy with a powerful structure). Nevertheless, understandable in light of main models of economic development
56 56
there is not a general agreement on how to define entrepreneurship formed by small and medium business networks. Due to broad
57 57
or whether or not it acts as risk-taking, the creation of a risky territory-based perspectives deeply rooted in economic actions,
58 58
activity or stimulus of innovation. Even, that how this issue can cultural and creative development can also be described as a

2 International Review of Management and Marketing | Vol 7 • Issue 4 • 2017


Toghraee and Monjezi: Introduction to Cultural Entrepreneurship: Cultural Entrepreneurship in Developing Countries

1 phenomenon occurring in specific environments and being formed situations. Also, values of art are distinct in different countries as 1
2 by the combination of all material and immaterial dimensions. regards the above territories. Klamer (2016) reveals that Americans 2
3 primarily act in the social territory when managing cultural issues. 3
4 During three recent decades, the relationship between culture Most creative organizations are based on personal presents and 4
5 (Klamer, 2011), territory (Florida, 2004), and its impacts upon gratuitous help. In turn, they expect an ideally shared feeling. In 5
6 local economy levels was discussed by scholars of geography, European countries, for instance in France, art primarily acts in 6
7 urban studies, cultural studies, etc. That culture and creativity can government territory in a way that it is understood as a public 7
8 act as leverage of regional growth and development, and wealth product supported by local government (through subsidy grant). 8
9 reproduction was increasingly discussed by local governments 9
10 worldwide (Hausmann, 2010; Scott, 2012). Since concept In market and government territory, art valuation is hardly done 10
11 of creative city has been discussed in different communities probably due to its inappropriate role in the fulfillment of other 11
12 especially in Anglo-American countries (Scott, 2012), concept main requirements. Klamer (2012) metaphorically suggests that 12
13 of creative or cultural clusters has been created and evaluated art is a discourse and discussion. Intrinsic values of art can only 13
14 especially in European countries (Ponzini, 2009; Le Blans, 2010) be determined through discourse and discussion. This discourse 14
15 as one of crucial components of urban, regional, and national occurs in all territories except in the market. Artists and arts 15
16 development strategies. Additionally, that what is the role of organizations encourage active participation in this discourse. 16
17 culture and creativity in regional competitiveness and local Klamer (2012) suggests that the aims are others’ involvement 17
18 development is prioritized over how local agents act in areas and the announcement of their participation in this perspective as 18
19 of cultural productions. Ultimately, different viewpoints are well as its skilled utilization. Also, cultural entrepreneurs should 19
20 associated with multiple dimensions of cultural, creativity, and act as an engine of this discourse and identify art values. Today, 20
21 development concepts in different environments among different artists and cultural organizations should establish alternative 21
22 agents. strategies for the sake of globalization and financial-competitive 22
23 pressures as well as survival and sustainability. Approaches 23
24 2.1. Value Categorization such as branding, marketing, and strong economic thinking 24
25 Confidently we can admit that the main difference between cultural and intuition, which are often in conflict with artistic areas of 25
26 entrepreneurship and conventional entrepreneurship related to activities, are significant for superiority and survival of cultural 26
27 cultural values (the objective is to scrutinize how values of art can actors. 27
28 be realized with entrepreneurial capabilities in a cultural context.). 28
29 In overall culture/art holds two types of values, intrinsic value and In addition to the cultural management, cultural entrepreneurship 29
30 instrumental value (Towse, 2011). is a crucially organizational philosophy in the 21 st century 30
31 (Hagoort, 2003). Nevertheless, cultural entrepreneurship is 31
32 2.2. Intrinsic Value a relatively new concept in academic field and world of art: 32
33 It refers to the own value of artistic works and intention of its A concept playing a crucial role in growth and development of 33
34 creator such as support of a special cultural identity. This values cultural and creative industries. Its main aim is a combination 34
35 are unmeasurable. of art and economy. Caves (2000) suggests that non-profit 35
36 organizations are primarily established for art-for-art. They 36
37 2.3. Instrumental Value monitor their artistic productions and successes while they reject 37
38 It refers to subsidiary and supplementary effects, which are not business and market mechanisms. Economically, creativity 38
39 typically the creator aim and intention. It can lead to positive and culture are often criticized due to distinct properties of 39
40 outcomes such as job creation or purchase of the related products. cultural productions and subsequently complexity of economic 40
41 These values are usually measurable. Absolute concentration neoclassic models. Creative productions involve properties 41
42 on instrumental values diverts attention from importance parts 42
such as ambiguous demand, immeasurable and durable values
43 i.e., the main aim of artistic work (Towse, 2011). Klamer (2011) 43
and general products. Furthermore, Academic World of Social
44 44
believes that values are identified in 4 different territories: Market, Sciences’ Scholarship puts emphasis on conflicts.
45 45
government, society, and oikos. The market territory is based
46 46
on values of exchange. Productions with relatively well-known Weber (as cited in Swedberg, 2006) concentrates on income and
47 47
properties are exchanged via financial means. In government profit in the economic territory while a donation is primarily
48 48
territory, the value of arts is determined by credits and subsidies. highlighted in art territory. This scholar equals art status with
49 49
In both territories, values are primarily quantitative and numerical. prior religious values - savior of people in the void world of
50 50
Therefore, instrumental values are taken into consideration. capitalism and bureaucracy. In other words, the economic system
51 51
In the social territory, quantitative and numerical values are is an intrinsically rational force managing market while art is
52 52
highlighted. People are socialized through irrational decisions and irrational and bilinear. Durkheim suggests a similar conflict
53 53
communications. Value and status of art are typically discussed between art, policy, and economy. While Weber views art as
54 54
among people. Oikos territory is personalized i.e. values are a provider of meaning, Durkheim regards art as an emotional
55 55
personally evaluated. This territory involves home, community, and affective status. Both scholars visualize an irrational
56 56
and shared responsibility. Artists discern the financial value of their world. Accordingly, Swedberg (2006) believes that they
57 57
works through supplementary jobs (Klamer, 2012). Art value can should develop a specific set of organizational procedures and
58 58
be determined and all four territories but differently in different mechanisms for the association of these two territories. This

International Review of Management and Marketing | Vol 7 • Issue 4 • 2017 3


Toghraee and Monjezi: Introduction to Cultural Entrepreneurship: Cultural Entrepreneurship in Developing Countries

1
AQ3 Table 1: Definitions of arts and cultural entrepreneurship (Hausmann and Heinze, 2016) 1
2 Arts and cultural Definition 2
3 entrepreneurs/ship 3
4 Lounsbury and “We define cultural entrepreneurship as the process of storytelling that mediates between extant stocks of entrepreneurial 4
5 Glynn (2001) resources and subsequent capital acquisition and wealth creation.” (p. 545) 5
6 Hagoort (2003) Cultural Entrepreneurship combines two freedom: Art as a content‑based and immaterial value and entrepreneurship 6
7 as a supporter of immaterial values. By this basis in mind and on the social responsibility of entrepreneurs, cultural 7
8 entrepreneurship can run a cultural and creative organization, carry out a strategically cultural mission, face risks to the 8
9 creation of balance between managerial values and creativity and make a contribution to critical infrastructure 9
10 Ellmeier (2003) “Cultural entrepreneurialism means all‑round artistic and commercial/business qualifications, long working hours and 10
11 fierce competition from bigger companies.” 11
12 Swedberg (2006) Cultural entrepreneurs can be defined as persons combining artistic components (e.g., a set of paintings) and economic 12
13 components (e.g., marketing) differently. Ultimately, Swedberg describes cultural entrepreneurship as new combinations 13
14 leading to the creation of new values in a given cultural territory 14
Johnson (2007) “[…] `cultural entrepreneurship ‘which here refers both to the creativity and initiative of the founder and to the
15 15
constraint and opportunity represented by the specific cultural schemas that structure the historical context in which the
16 16
founder is embedded.” (p. 99)
17 Hausmann (2010) “[…] cultural entrepreneurs are identified as artists undertaking business activities within one of the four traditional 17
18 sectors of the arts [.]. [They] discover and evaluate opportunities in the arts and leisure markets and create a (micro) 18
19 business to pursue them.” (p. 19). 19
20 Kavousy “Cultural entrepreneurs are resourceful visionaries, generating revenues from culturally embedded knowledge 20
21 et al. (2010) systems and activities; their innovative applications of traditions to markets result in economically sustainable cultural 21
22 enterprises.” (p. 228) 22
23 Konrad (2010) “Cultural entrepreneurs are individuals who create new organizations, products or activities within the cultural 23
24 sector […]” (p. 336, translated by the authors) 24
25 Preece (2011) “[…] performing arts entrepreneurship will refer to the process of starting a not‑for‑profit organization with the intent of 25
26 generating artistic performances (creation and/or presentation).” (p. 105) 26
27 Klamer (2011) “When I view cultural entrepreneurs [.], I see people who are geared toward the realization of cultural values. […] The 27
28 economics has to be an instrument for them in order to realize cultural values [.]. [.] cultural entrepreneurship has to 28
29 involve more than marketing skills and sensitivity to the artistic process; it also involves the persuasive power to induce 29
30 a candidate for art into the appropriate conversation and to realize it as a common good.” (p. 154) 30
Scott (2012) “Therefore, the term cultural entrepreneur` `can be understood as a subjectivity combining three elements. First, these
31 31
individuals create new cultural products, such as songs [.]. Second, they are oriented towards accessing opportunities [.].
32 32
Third, [.] they have to find innovative ways of doing [.].” (p. 243)
33 33
Mokyr (2013) “Cultural entrepreneurs, then, are defined as individuals that add to the menus from which others choose. […] usually
34 34
they build upon existing but diffuse notions, and formulate them in a sharp set of propositions or beliefs, which serve as
35 35
a cultural Schelling focal point to their contemporaries. In that sense they create something new.”
36 Enhuber (2014) “[.] Cultural entrepreneurship can be understood to refer to `cultural change agents and resourceful visionaries 36
37 who organize cultural, financial, social and human capital, to generate revenue from a cultural activity× (Tremblay, 37
38 2013).” (p. 4) 38
39 Chang and “[.] a possible general definition: `arts entrepreneurship×is a management process through which cultural workers seek 39
40 Wyszomirski (2015) to support their creativity and autonomy, advance their capacity for adaptability, and create artistic as well as economic 40
41 and social value.”) 41
42 Essig (2015) “Thus, in the arts and culture context [.] it may also be understood to include the creation of new expressions of 42
43 symbolic meaning by individuals. [.] we can understand entrepreneurship, in the arts and culture sector and elsewhere, 43
44 as a process for converting means to desirable ends through a mediating structure or organization that may be called 44
45 a×firm× [.]” (p. 227) 45
46 46
47 is one of cultural entrepreneur’s tasks - A bridge between the find new ideas for such innovations. Rather, performance and 47
48 world of art and economy. For a complete understanding of distribution of these ideas are very significant. Additionally, they 48
49 cultural entrepreneurs’ role, its relationship with conventional are not stimulated by financial and monetary encouragements. 49
50 entrepreneurs should be highlighted. Schumpeter considers Rather, intrinsic motivation is involved for the creation of a 50
51 entrepreneurs as developing agents in capitalism system, and personal territory and satisfaction with appropriate performance. 51
52 their means are innovation from new models to new products, Therefore, Schumpeter (as cited in Towse, 2011) describes 52
53 53
and new organizational forms, which makes a contribution to entrepreneurs as action men and main agents of the creation of a
54 54
creative destruction process and ultimately economic change personal territory and satisfaction with appropriate performance.
55 55
(Towse, 2011). Creative destruction process describes a method The general property of economy is uncertainty or gap of
56 56
of economic structural transformation through prior structure future-related knowledge. This gap is performance space of
57 57
destruction and creation of a new economic structure. It is entrepreneurs understanding opportunities, taking related risks,
58 58
worth noting that entrepreneurs are not essentially required to and put in the related performance.

4 International Review of Management and Marketing | Vol 7 • Issue 4 • 2017


Toghraee and Monjezi: Introduction to Cultural Entrepreneurship: Cultural Entrepreneurship in Developing Countries

1 3. DEFINITION OF CULTURAL and means of art when we attach value to it and realize who the 1
2 art is represented. 2
ENTREPRENEURS
3 3
4 In the end, according to the conducted studies, overlapping of 4
Aageson (2008) defines cultural entrepreneurs as risk takers,
5 entrepreneurship and culture is evaluated from three perspectives: 5
agents of change, and creative thinkers who receive income from
6 6
durable and creative cultural activities and organizations, improve
7 4.1. Tendency of Culture towards Entrepreneurship 7
the quality of life, and create cultural values for both creative
8 A country’s culture exerts impacts upon areas of entrepreneurs’’ 8
manufacturers and consumers of cultural products and services
9 activities. It is most likely that changes occur and routines are 9
(Anheier and Isar, 2010). Cultural entrepreneurs are agents of
10 removed when society asks for innovation. Also, strong traditions 10
changes and subsequently agents of cultural innovation creation.
11 and avoidance of uncertainty restrict entrepreneurial innovations. 11
12 They smartly find opportunities, tend to take personal, financial,
Weber (1904) suggests that a society accepting Protestantism is 12 AQ1
13 and psychological risks, and face uncertainty. They create a vision
stimulated to make competition for profitability, investment, and 13
14 and simultaneously hope to achieve it. They enthusiastically collect
ultimately accumulation of wealth. Moreover, Macland states that 14
15 all their required resources for the establishment and running
societies requiring great successes experience a higher level of 15
16 cultural firms. They collect their finance from different resources.
entrepreneurship. establishes a relationship between individualism 16
17 and potential of innovation. A large number of scholars attempting 17
18 4. DISCUSSION AND CONCLUSION to reveal a relationship between culture and entrepreneurship make 18
19 resort to cultural indices of Hofstede (1980) which are as follows: 19 AQ1
20 According to Creative Economy Report (2010), a global business Distance from power, avoidance of uncertainty, patriarchy over 20
21 of creative productions grew by 14% from 2002 to 2008. Even in matriarchy, and individualism vs. collectivism. For example, 21
22 an economic and financial crisis of 2008, they were increasingly Americans understand high uncertainty and experience a high 22
23 demanded. This creative industry is regarded as one of the most level of individualism. Nevertheless, findings on the relationship 23
24 rapidly growing areas of the global economy. Moreover, the between culture indices and entrepreneurship indices are often 24
25 importance of creative industries is specifically discussed in contradictory. For example, Sheen (1992) reveals that countries 25
26 scholarship community, including the use of creative outputs for with the lower level of power distance and uncertainty avoidance, 26
27 creating new wealth, local talents, creative capitals, employment, and high level of patriarchy and individualism primarily pursue 27
28 and improvement in competitions and new export markets. This entrepreneurship as compared with the other countries. These 28
29 continuing growth implies that cultural business is also increasing findings presuppose that in countries with such a culture, a 29
30 in developing countries and subsequently wealth and development relatively larger number of people pursue entrepreneurial 30
31 can increase (Toghraee et al., 2017). Great potentials of cultural values. On the other hand, Baum et al. (1993) suggests that 31
32 industries are not still utilized and no attention is made to them avoidance of high certainty and slight individualism can stimulate 32
33 regarding economic profitability. The most crucial determinants entrepreneurship (Brown et al., 2004). 33
34 of inappropriately competitive conditions concerning creativity 34
35 in developing countries, which require global help, are education 4.2. Cultural Understanding of Entrepreneurship 35
36 issues, poverty, and lack of related institutions (Toghraee et al., In addition to studying on entrepreneurship basis, a small number 36
37 2017). Issues relating to finance, sponsorship, and financial of scholars clarify its meaning and implication and promote its 37
38 supports are of determinants causing lack of this industry’s growth. properties in different cultures. These properties are differently 38
39 Moreover, a continuum of cultural productions is delicate. There widespread in different cultures. International comparative 39
40 are weak steps and stages for promotion, branding, distribution, studies utilize a restricted cultural definition for entrepreneurship 40
41 and ownership support of cultural productions due to not only and therefore do not achieve reliable and valid results. With 41
42 lack of integration but also a lack of artists’ knowledge about respect to Hofstede Model, Thomas and Muller (2000) attempt 42 AQ1
43 these processes. 43
to examine the significant difference of entrepreneurship
44 44
parameters in different cultures. They identify four parameters
45 One of the main other issues is that art and culture are not still 45
of entrepreneurship creation in the US, which are as follows:
46 associated with monetary conditions. Artists view their profession 46
Innovation, risk-taking, internal control, and high level of energy.
47 47
as a tradition continuance rather than a business. For instance, By using Benchmark Model, they make a comparison of this ideal
48 48
young musicians only attend festivals for concentrating on their model in eight other countries being culturally distinct with the US.
49 49
performance in a way that they ignore opportunities such as the China and Singapore are non-European countries of this research.
50 50
creation of relationships and new resources of income. Therefore, Accordingly, innovation index is the only main determinant of
51 51
one of the main obstacles to the development of these industries is entrepreneurship, which is not different in the studied cultures.
52 52
the different mentality of people. Lack of entrepreneurial attitudes Innovation or - as Schumpeter points out- the capability of
53 53
causes absence of other capacities. And, artists have a small extent new value creation can be regarded as a global characteristic.
54 54
of managerial skills, professionality, networking, trust in risk- Furthermore, the greater the culture difference between these
55 55
taking, and general knowledge of the market. In general, there are countries and US is, the lower their entrepreneurship level is.
56 56
not explicitly cultural policies for improving finance, training, and These findings demonstrate that culture restricts entrepreneurship
57 57
status of art. One of the crucial determinants of art and creative phenomenon. Different countries gain a different understanding
58 58
development is people understanding of art. We improve ways of successful entrepreneur’s features. When examining the role

International Review of Management and Marketing | Vol 7 • Issue 4 • 2017 5


Toghraee and Monjezi: Introduction to Cultural Entrepreneurship: Cultural Entrepreneurship in Developing Countries

1 of entrepreneurship in different countries, scholars should play defines distinction of cultural entrepreneurs. The value of art is 1
2 the role of culture into consideration. Entrepreneurship as a its conventional possession. As a public product, art is required 2
3 thinking style can be understood as a culture. There are convincing to be shared. Klamer (2011) views art as a qualified discourse. 3
4 discussions about a global approach to shared properties and Cultural entrepreneurs should mainly participate in this discourse. 4
5 their definitions. Klamer (2016) states that entrepreneurs view Economy, market, and other financial parameters help them 5
6 art as public goods which require being shared. The aim is understand these values. They can combine financial, humanistic, 6
7 identification and understanding of cultural values in a way that and cultural capitals with each other. They can identify and create 7
8 financial parameters should act as ways and means. Cultural creative business and should create and maintain a network of 8
9 entrepreneurship is a personality and a crucial culture. Cultural people. As the organization grows, the artistic manager comes into 9
10 entrepreneurship not only discovers creative methods for survival existence and monitors everyday activities and measures. Hagoort 10
11 and sustainability but also actively participate in cultural areas (2003) summarizes main components of cultural entrepreneurship 11
12 of activities. (Figure 1). Top of Figure 1 illustrated enthusiasm towards a given 12
13 area and specified artistic viewpoint. The left corner is an external 13
14 4.3. Cultural Entrepreneurship trend (market) focusing on innovation, and the right corner is social 14
15 Cultural entrepreneurs are agents of changes and subsequently accountability on a given artistic area for stimulating expectable 15
16 agents of cultural innovation creation. They smartly find cultural climate (Hagoort, 2007). 16
17 opportunities, tend to take personal, financial, and psychological 17
18 risks, and face uncertainty. They create a vision and simultaneously 18
19 hope to achieve it. They enthusiastically collect all their required
REFERENCES 19
20 resources for the establishment and running cultural firms. They 20
Aageson, T. (2008), Cultural entrepreneurs: Producing cultural value and
21 collect their finance from different resources. They are also actively 21
wealth. In: Anheier, H.K., Isar, Y.R., editors. The Cultural Economy.
22 obliged. Creative and cultural entrepreneurs have specific features, Los Angeles: SAGE. p92-107. 22
23 act in difficult conditions of market (Klamer, 2016), manufacture Abbing, H. (2016), Rejection of commerce in the arts, draft of Part III of 23
24 cultural goods (Klamer, 2006), primarily cooperate with content- my forthcoming book the art period, on the changing. Amsterdam: 24
25 based persons rather than business-oriented people (Throsby, Amsterdam University Press. 25
26 2007), and usually establish very small firms (Phillips, 2011) with Anheier, H.K., Isar, Y.R. (2010), Cultures and Globalization: Cultural 26
27 permanent networks (Ponzini, 2010). Entrepreneurship of cultural Expression, Creativity, and Innovation. Vol. 3. London: SAGE 27
28 and creative industries combines two independent trends: Art as Publications Limited. 28
29 a content-based and immaterial value and entrepreneurship as a Barrowclogh, D., Kozul-Wright, Z. (2008), Creative Industries and 29
30 supporter of immaterial values. By this basis in mind and on the Developing Countries. London: Routledge Taylor & Francis Group. 30
31 social responsibility of entrepreneurs, cultural entrepreneurship Baum, R., Olian, J.D., Erez, M., Schnell, E.R., Smith, K.G., Sims, H.P., 31
32 can run a cultural and creative organization, carry out a Scully, J.S., Smith, K.A. (1993), Nationality and work role 32
interactions: A cultural contrast of Israeli and U.S. entrepreneurs’
33 strategically cultural mission, face risks to the creation of balance 33
versus managers’ needs. Journal of Business Venturing, 8(6), 499-
34 between managerial values and innovation and make a contribution 34
512.
35 to critical infrastructure. Cultural entrepreneurs are actors of British Council. (2010), Creative and cultural economy series. Mapping 35
36 cultural areas and -as Aageson (2008) suggests- and creators the Creative Industries: A Toolkit. Vol. 2. London, UK: British 36
37 of a cultural organization. Artists create cultural contents while Council. 37
38 entrepreneurs carry out their activities within the continuum of Brown, T.E., Ulijn, J.M., editors. (2004), Innovation, Entrepreneurship 38
39 values, including distribution of cultural products. Thus, cultural and Culture: The Interaction between Technology, Progress and 39
40 entrepreneurs reject that art is self-sufficient and self-fulfilling. Economic Growth. Cheltenham: Edward Elgar Publishing. 40
41 According to Klamer (2016), understanding of cultural values Caves, R.E. (2000), Creative Industries: Contracts between Art and 41
42 Commerce. Cambridge, Massachusetts, USA: Harvard University 42
43 Press. 43
Figure 1: Main components of cultural entrepreneurship Chang, W.J., Wyszomirski, M. (2015), What is arts entrepreneurship?
44 44
45 Tracking the development of its definition in scholarly journals. 45
Artivate: A Journal of Entrepreneurship in the Arts, 4(2), 11-31.
46 46
Cohendet, P.D., Grandadam, L.S. (2010), The anatomy of the creative AQ2
47 47
city. Industry, and Innovation, 17(1), 91-111.
48 Essig, L. (2015), Means and ends: A theory framework for understanding 48
49 entrepreneurship in the US arts and culture sector. Journal of Arts 49
50 Management, Law, and Society, 45(1), 227-246. 50
51 Florida, R. (2004), The Rise of the Creative Class: And how it’s 51
52 Transforming Work, Leisure, Community and Everyday Life. 52
53 New York, USA: Basic Books. 53
54 Kamara, Y. (2004), Keys to Successful Cultural Enterprise Development AQ2
54
55 in Developing Countries. Paris: UNESCO Arts and Cultural 55
56 Enterprise Division. 56
57 Hagoort, G. (2003), Art Management: Entrepreneurial Style. Netherlands: 57
58 Eburon Academic Publishers. 58
Hagoort, G. (2007), Cultural entrepreneurship: On the freedom to create

6 International Review of Management and Marketing | Vol 7 • Issue 4 • 2017


Toghraee and Monjezi: Introduction to Cultural Entrepreneurship: Cultural Entrepreneurship in Developing Countries

1 art and the freedom of enterprise, summary version. Utrecht: Utrecht 1


agenda. Journal of Arts Management, Law, and Society, 41(2),
2 School of the Arts, Research Group Art and Economics. 103-120. 2
3 Hausmann, A. (2010), German artists between bohemian idealism and Schumpeter, J. (1998), Freude am gestalten. In: Faltin, G., Ripsas, S.,
3
4 entrepreneurial dynamics: Reflections on cultural entrepreneurship Zimmer, J., editors. Entrepreneurship: Wie Aus Ideen Unternehmen
4
and the need for start-up management. International Journal of Arts Werden. München, Germany: C.H. Beck. p21-28.
5 5
Management, 12(2), 17-29. Scott, M. (2012), Cultural entrepreneurs, cultural entrepreneurship: Music
6 6
Hausmann, A., Heinze, A. (2016), Entrepreneurship in the cultural producers mobilizing and converting Bourdieu’s alternative capitals.
7 and creative industries: Insights from an emergent field. Artivate: Poetics, 40(3), 237-255. 7
8 A Journal of Entrepreneurship in the Arts, 5(2), 7-22. 8
Silern, N. (2013), The Role of Cultural Entrepreneurship among
9 Kavousy, E., Shahosseini, A., Kiasi, S., Ardahaey, F. (2010), Cultural 9
Impoverished Artists in Africa in Becoming More Sustainable-an
10 entrepreneurship strategies in Iran. Serbian Journal of Management, 10
Ethnographic Study of the Art Sector in Uganda, Master Thesis
11 5(2), 227-241. 11
of Cultural Economics and Cultural Entrepreneurship, Erasmus
12 Klamer, A. (2011), Cultural entrepreneurship. The Review of Austrian University Rotterdam. 12
13 Economics, 24, 141-156. Swedberg, R. (2006), On teasing out sociology from economics:
13
14 Klamer, A. (2012), The mode of financing matters. What is the right thing A brief note on Parsons and Schumpeter. The American Journal of
14
15 to do? Rotterdam: Erasmus University. Economics and Sociology, 65(1), 71-78. 15
Klamer, A. (2016), The value-based approach to cultural economics. Toghraee, M.T., Rezvani, M., Mobaraki, M.H., Yadollahi, F.J. (2017a),
16 16
Journal of Cultural Economics, 40(4), 365-373. A systematic review on entrepreneurial marketing: Three decade
17 17
Konrad, E. (2013), Cultural entrepreneurship: The impact of social research on entrepreneurial marketing. International Journal of
18 networking on success. Creativity and Innovation Management, 18
Applied Business and Economic Research, 15(8), 273-296.
19 22(3), 307-319. 19
Toghraee, M.T. (2017), Conceptualization of Marketing Mix in
20
AQ2 Lange, B. (2008), Accessing markets in creative industries: 20
Creative Cultural-Art Based Businesses, PhD Thesis of Corporate
21 Professionalization and social-spatial strategies of culturepreneurship Entrepreneurship, University of Tehran. 21
22 in Berlin. Creative Industries Journal, 1(2), 115-135. 22
Toghraee, M.T., Rezvani, M., Mobaraki, M.H. (2017), Conceptual model
23 Le Blanc, A. (2010), Cultural districts, a new strategy for regional 23
of entrepreneurial marketing in art- cultural based enterprise. Journal
24 development? The South-East cultural district in Sicily. Regional of Entrepreneurship Development, 9(33), 449-473. 24
25 Studies, 44(7), 905-917. Toghraee, M.T., Rezvani, M., Mobaraki, M.H., Yadollahi, F.J.,
25
26 Lounsbury, M., Glynn, M. (2001), Cultural entrepreneurship: Stories, Monjezi, M. (2017b), Entrepreneurial marketing in creative art based
26
legitimacy, and the acquisition of resources. Strategic Management businesses. International Journal of Management Practice. (In Press).
27 27
Journal, 22(6-7), 545-564. Towse, R. (2011), A Handbook of Cultural Economics. Cheltenham, UK:
28 28
Mokyr, J. (2013), Cultural entrepreneurs and the origins of modern Edward Elgar Publishing.
29 economic growth. Scandinavian Economic History Review, 61(1), 29
Throsby, D. (2007), Economics and Culture. Cambridge: Cambridge
30 1-33. University Press. 30
31 Phillips, R. (2011), Arts Entrepreneurship and Economic Development: 31
United Nations. (2010), Creative Economy Report 2010. UNCTAD,
32 Can Every City be Austintatious. Indianapolis, USA: Now Publishers DITC. 32
33 Inc. 33
Welsh, D.H.B., Onishi, T., de Hoog, R.H., Syed, S. (2014), Responding
34 Ponzini, D. (2009), Urban implications of cultural policy networks: The 34
to the needs and challenges of arts entrepreneurs: An exploratory
35 case of the mount Vernon cultural district in Baltimore. Environment study of arts entrepreneurship in North Carolina higher education.
35
36 and Planning C: Government and Policy, 27(3), 433-450. Artivate: A Journal of Entrepreneurship in the Arts, 3(2), 21-37.
36
AQ2
37 Pratt, A.C. (2008), Cultural commodity chains, cultural clusters, or Wilson, N., Stokes, D. (2006), Managing creativity and innovation: The
37
cultural production chains? Growth and Change, 39(1), 95-103. challenge for cultural entrepreneurs. Journal of Small Business and
38 38
Preece, S. (2011), Performing arts entrepreneurship: Toward a research Enterprise Development, 12(3), 366-378.
39 39
40 40
41 41
42 42
43 43
44 Author Queries??? 44
45 AQ1: Kindly provide these author details in the reference 45
46 list 46
47 AQ2: Kindly cite reference in the text part 47
48 AQ3: Kindly cite table 1 in the text part 48
49 49
50 50
51 51
52 52
53 53
54 54
55 55
56 56
57 57
58 58

International Review of Management and Marketing | Vol 7 • Issue 4 • 2017 7


View publication stats

You might also like