Creative industries - embrace them or ignore them? David Casey looks at the impact of creative businesses across Merseyside
Oscar Wilde wrote: "The play was a great success, but the audience was a total failure." In business terms, it's an age old problem - while the product might be impressive, the dearth of customers certainly isn't. Creative industries is an oft-forgotten sector that tends to evoke an image of the inspired craftsman plying his trade to a relatively disinterested audience. It is an industry characterised by high levels of self-employment, product-centred businesses and personnel who move around freely, seemingly happier to build portfolios than the basis of a steady career.But anyone who knows the Ropewalks area of Liverpool cannot fail to notice the cultural change that's occurring.
Behind the concentrations of decaying warehouses and semi-derelict buildings in Duke and Bold Street lies a burgeoning number of thriving creative companies, contributing greatly to the local economy and developing a new breed of entrepreneurs.
Once an area written off by developers, it now serves as a crucial part of the creative ecology of the city, housing a diverse range of businesses from design studios, workshops, independent retailers, music studios and art galleries. "There are a lot of good creative companies emerging out of Liverpool at the moment," says Nick Howe, one of the three founding partners of design consultancy Uniform.
A graduate in product design and marketing at Liverpool John Moores University (LJMU), Howe has worked hard over the last eight years to establish Uniform and turn his passion for design into a viable business. "I think there was a certain naivety when we first started," he says. "Like most people in the creative industry the basis for the company was simply about the work we were producing.
It was what we wanted to do at the time and so the design was the primary focus. "But for a business to grow, you need more than this initial love for what you do.
We're lucky at Uniform as there was a split within the partners - I was always interested in the financial side of things and the others were more focused on the production side." This relationship is starting to pay dividends, with the company reporting an annual turnover of £3700,000 that is predicted to rise to £31.05m in 2007.
Staff numbers have also risen steadily since the trio set up the company, with the number of employees now standing at 18. And Howe's story isn't uncommon.
Support agency Business Liverpool estimates that there are almost 2,000 creative businesses in Merseyside, with more than 16,000 employees and an annual turnover of £3500m.
By any standards, it's a sector that is prospering. One organisation set up to help develop such industries in the region is Merseyside ACME.
Established in 1997, it was the first specialist support agency of its kind in the North West and works with partners in both the public and private sector. "Our main motivation is to help small creative businesses in the sector and promote the use of creativity as a means of supporting community and economic regeneration," says Kevin McManus, director of ACME. "As a development agency we deliver a range of projects and interventions delivered in response to feedback from creative businesses based on Merseyside." Although McManus says the industry is doing well, this wasn't always the case. "We started nine years ago and at the time it wasn't really taken seriously as a viable industry sector.
There were those who would look down on it as something that contributed little to the economy," he says.
With many regarding the sector as a product-focused, customer-free zone, it is agencies like ACME that has had to work hard to shed this image. "I think Merseyside, along with the rest of the country, is moving away from traditional industries and this is forcing people to take note of what things are happening in the creative sector," says McManus. "We've strived to educate those who didn't recognise it as a profitable industry and I think people are now starting to see the economic benefits it has to offer." One area of help available is a new initiative launched by ACME in conjunction with The Mersey Partnership, Business Liverpool and the Merseyside Objective One Programme.
The Kin network provides a link between creative businesses in the region and will allow them to promote their services online, access useful business advice, view industry news and find details of networking opportunities and other sources of support. "Kin has developed as a result of demand from local creative businesses," says McManus. "We did a lot of talking to companies and asked them what they wanted and how could we help.
Most agreed that they wanted a chance to meet and talk to other businesses and create a link between them so collaboration can occur.
In the end, it has developed into a network for creative industries, by creative industries." ACME hopes to have more than 1,000 members by March 2007 and that the scheme will further promote Merseyside's creative sector. Jon Corner, co-founder of production company River Media, agrees that promotion is one thing that the region could be doing more. "People don't see Liverpool as a centre for creative industries, let alone digital technology," he says. "In terms of our business, Liverpool has a great reputation for providing great actors and locations to shoot, but not for special effects, editing or post production - yet we have invested in some of the best equipment available and are at the high end of the market." River was formed six years ago and has grown from having two founding partners to having a staff of 15. Its impressive portfolio of work includes national BBC Sport promos, Labour Party conference content videos, a Lovesport promo featuring Steven Gerrard as well as film and TV work in Cannes, New York, Iceland and Germany.
In addition, the company produced the video for the Liverpool Capital of Culture bid and has continued to work with the Liverpool Culture Company. "If we say we're from Liverpool to some of our international clients, they've heard of it because of obvious musical links, but nothing more.
Instead, cities like London, Edinburgh, Bristol and even Manchester are more associated with digital technology, but this is something I'd like to change," says Corner. And changing this perception is important if the region wants to hang on to businesses like River.
Although the company remains committed to Liverpool for the moment, it is essential that promotion of the sector continues otherwise the city could risk losing such businesses to surrounding areas, especially now Manchester's expanding sector has been boosted by the BBC's proposed relocation. Sarah Elderkin, development director of support agency Design Initiative, also warns that the region could become a victim of its own success if it ignores the needs of young entrepreneurs, especially in the design industry. "It's increasingly difficult for designers to find appropriate workspace.
We get enquiries every week for affordable premises, especially from people starting out," she says. "While the city's regeneration provides a welcome transformation, it has also pushed the cost of premises beyond the reach of some small design businesses and start-ups.
A lack of suitable workspace is often the reason for designers leaving Liverpool." However, while such start-up businesses can no longer afford to locate in Liverpool's Ropewalks hub, clusters of creative enterprises are beginning to emerge across the rest of the city. One cluster is based at the new Liverpool Science Park situated on Mount Pleasant, close to the Metropolitan Cathedral. The £38m facility is a partnership scheme between the University of Liverpool, LJMU and Liverpool City Council.
Dr Sarah Tasker, chief executive of the park, says that Liverpool now has the facilities to exploit its expert knowledge potential and create a reputation for its research and innovation. "I think it's important for small creative companies to have expertise available so that they are able to develop," says Tasker. "With the science park, they now have a facility geared towards them that is situated close to two world-class universities allowing collaboration to occur." Paul Leather, business development manager at the park, echoes Tasker's comments. "Liverpool has massive potential.
The science park puts Merseyside at the heart of developments in new media and other high-tech industries, which are crucial to the economic wealth of the region," he says.
Since opening in January 2006, Liverpool Science Park has attracted more than 20 companies and is on target to be 80 per cent full by the end of its first year.
Plans are also underway to build larger premises, enabling the companies it has already attracted to expand their base when the need arises.
Such investment is key if the creative sector is to continue to expand. Jo Wright, enterprise manager at Creativebias, a branded service programme of the Music Development Agency that provides support to both pre-start and existing creative industries on Merseyside, also points out that another major component in ensuring success is to use the opportunity of Liverpool 08 wisely. "I think it's imperative that the focus isn't entirely placed on the prospect of attracting further public subsidy.
With the media attention on the city, it's important to showcase the creative talents that the city has to offer and use the exposure to increase sales, employment and investment," he says. And so with Liverpool's year in the European spotlight fast approaching, it seems apparent that creative industries in Merseyside should not rest on their laurels, but continue to build on the successes already achieved.
They need to ensure the sector develops into something the region can be proud of and one that gets the recognition it deserves as a breeding ground for entrepreneurs and a valuable asset to the region's economy.