FINANCIAL SUPPORT FOR THE DEVELOPMENT OF ARTS AND CULTURE INDUSTRIES IN UKRAINE

  • Tetiana Kizyma
Keywords: creative economy, culture and arts industries, financial support, financial instruments, self-financing, grant financing, patronage, sponsorship, tax privileges, lending

Abstract

Formation and further development of culture and arts industries, which constitute a significant segment of the creative economy, are important prerequisites for the sustainable development of Ukraine. Culture and arts industries as well as creative entrepreneurship are relatively new concepts in Ukraine, but not a new phenomena in world practice.

Improving financial support for the development of culture and arts industries is extremely complex and at the same time an under researched topic both in foreign countries and in Ukraine. This is due to the fact that organizations of the creative economy primarily work with objects of intellectual property rights (assessment of which requires relevant skills and knowledge); most cultural and artistic industries have a hybrid business model (which involves an assessment of relevant financial risks). For institutional investors who are ready to invest in the capital of culture and arts businesses, the assessment of the share in business is a difficult issue.

However, the modernization of financial tools for stimulating the development of culture and arts industries in Ukraine has a powerful potential, because with the availability of the necessary financial resources, creative ideas can turn into concrete products or services more quickly, and if there are available loans, culture and arts organizations will be able to focus directly on their main activities and not on its supporting types.

Self-financing, grant financing, patronage, corporate philanthropy, sponsorship, tax incentives, lending, capital financing, collective financing have been identified among the most promising sources, models and tools of financial support for the development of culture and artistic industries in Ukraine. The emphasis is on the need to use the creative potential of the actors in national economy.

In the article it is stressed that direct government procurement and tax privileges are a powerful but rather passive instruments of such incentives. But to boost the growth dynamics in culture and arts industries can, in first place, preferential bank loans, grants for the development and launch of pilot projects, as well as information and consulting assistance through state development agencies or the network of "business incubators".

Published
2018-02-13