Economic Contributions of the Creative Sector

“If you were advising a head of state, CEO, or global institution at #Davos, what's the one decision they should make in the next 12 months to unlock equality and economic value in the creative economy?” I was asked this question on stage at World Woman House yesterday, and here's what I said. First, context: I'll never forget sitting across from a panel during my interview for one of India's most prestigious leadership forums. Thirty minutes in, I was accepted. But in those 30 minutes, I was told 11 times that I didn't come from a "serious business." I don't know what the definition of a serious business looks like to most people, but to me it's one that has a strong P&L or is on the way to one. It has predictable economics. It compounds, not just scales. It has clear ownership and governance structures. And it solves a problem at meaningful scale. Which one of these does my business not have? So here's the decision that's needed: Reclassify creative IP as an asset class. Right now, a factory gets financed. A patent portfolio gets financed. Even future cash flows from subscription revenue get securitized and financed. But a musician's catalog? A creator's audience? A designer's brand equity? These are still treated as too risky, too intangible, too difficult to value—unless you're Taylor Swift or a posthumous estate worth hundreds of millions. Here's what I recommended: In the next 12 months, work with financial institutions to create standardized frameworks for valuing and financing creative IP. What would that look like? * Audience engagement metrics tied to revenue multiples * Brand equity valuations based on trust and conversion data * IP licensing frameworks that allow creators to securitize future earnings The creative economy contributes $2 trillion globally, but it's fragmented and uneven in opportunity because we refuse to treat it as legitimate infrastructure. If we're serious about unlocking growth, we need to stop asking creators to prove their worth using industrial-era metrics and start building financial systems that recognize the value they're already creating. #CreativeEconomy #Davos2026 #Innovation #FutureOfFinance

Canada’s artists, creators, and cultural entrepreneurs are at the heart of our identity. Their work drives innovation, supports jobs, and ensures Canadian stories are heard at home and around the world.   A recent report by the Canadian Chamber of Commerce shows that in 2024, arts and culture contributed $131 billion to Canada’s GDP and supported 1.1 million jobs across the country when accounting for total economic impacts. Over the past three years, the sector’s GDP has grown nearly 8%, outpacing Canada’s overall economic growth of 4%. Budget 2025 proposes unprecedented $772.8 million in new investments in arts, culture, and our creative industries. These investments meet the moment and position our creative economy for long-term growth and stability.   In the face of uncertainty, we’re protecting our cultural sovereignty, strengthening our economy, and building Canada strong.

If I was a creative leader right now, I would spend at least 20% of my time learning about finance. Creative businesses don’t stall because they lack ideas. They stall because they don’t understand how money moves. Most creative leaders spend their careers speaking to other creative leaders, sharing ideas, swapping industry trends, chasing inspiration. And that can be powerful. Especially if you’re speaking to creatives in slightly different worlds. But if you want to scale, and have the creativity you sell seen as a commercial driver, you need to understand how money moves. Here’s why: 1. Creativity Doesn’t Need Justification, it’s Needs a Business Case. You know the value of what you do. But CFOs, investors, and procurement teams don’t buy creativity. They buy results. If you can’t tie your ideas to revenue, market share, retention, or efficiency gains, you’re selling art, not business impact. Great creatives are good at pitching ideas. But the world class creatives are experts at translating ideas into commercial returns. 2. The Biggest Creative Opportunities Are in the Blind Spots of Finance. Finance teams optimise for efficiency. Creatives optimise for possibility. That gap is where the most valuable ideas sit. The best creative leaders aren’t just designing campaigns. They’re redesigning business models, rethinking revenue streams, and creating new markets. But if you’re not in the room with financial decision-makers, you’ll never spot those opportunities. 3. Money Moves Differently Than It Did a Decade Ago. The way businesses invest, grow, and allocate budgets has changed. Private equity firms are buying up creative businesses. Venture-backed brands are prioritising customer lifetime value over awareness. Companies are restructuring how they spend on marketing, brand, and innovation. If you don’t understand how money moves in 2025, you’ll still be selling ideas, while someone else is selling the growth that those ideas create. Talk to More Finance People. Learn Their Language. Influence Their Decisions. The creative leaders that do this don’t just get bigger budgets. They get more seats at different tables and they change the way businesses grow. Look at David Droga or Scott Galloway, or more recently, Jonny Bauer. These people understand how to leverage finance and unlock more creative possibilities. My mission over the next year is to connect with more funds, VCs, PE houses, so I can bridge the gap between those two worlds. It’s where the disproportionate possibility is lying.

FUNDING FASHION Many talented designers struggle not because they lack skill, but because they lack funding to produce their ideas at scale. Fashion is a business, and every business requires cash flow. Funding gives designers the ability to Purchase quality materials, Hire skilled workers, Invest in better equipment, and Promote their collections etc., but without funding, even the best ideas would remain unexecuted. Most designers begin their journey by funding their work personally. This could come from personal savings, side jobs, freelance gigs, or even family support. It’s often the most realistic first step, especially for beginners still building credibility, but self-funding can be limiting. Once a brand begins to grow, personal savings may no longer be enough. That’s where other funding options come in: 1. Fashion Grants and Competitions One of the most accessible and effective ways to raise funds today is through fashion-focused grants, scholarships, and competitions. These programs exist globally, often sponsored by fashion councils, development agencies, or private organizations that want to support emerging talent. For example: The Lagos Fashion Week Green Access Program supports designers who promote sustainability. If you’re serious about your brand, make time to research these opportunities. Prepare your portfolio, refine your brand story, and apply. 2. Small Business Loans and Government Support In Nigeria, there exist loans and supports from programs like The Bank of Industry (BOI) Creative Industry Loan, The Development Bank of Nigeria (DBN) grants, and SMEDAN small business support schemes, specifically designed to help entrepreneurs in fashion and other creative sectors. These initiatives provide access to low-interest loans and grants but to qualify, you need to have structure. That means registering your business name, Writing a simple business plan, and Keeping basic financial records or projections. Structure gives you credibility, and credibility attracts funding. 3. Pre-orders and Client-Based Funding Sometimes, the best funding comes straight from your customers. Through pre-order systems, designers can collect payments or deposits before production begins. This provides working capital upfront and helps you understand demand before committing to large-scale production. For example, before launching a new collection, a designer could share sketches or samples online, open pre-orders for two weeks, and use the capital raised to start production. This approach is both smart and sustainable, you’re producing based on confirmed demand, not assumptions. It reduces waste, manages cash flow better, and builds trust with loyal customers. However you need to put IP protection systems in place. Finance plays a role in every creative process, and funding a fashion business is not about luck, it’s about preparation, clarity, and consistency. So set the right foundation. #fashion #fashionlaw #business #finance #funding

If I walked into 90% of creative SMEs today, I’d tighten operations, I wouldn’t inject capital. In fact, capital poured into weak systems doesn’t drive growth, it accelerates collapse. Across African creative SMEs comprising agencies, studios, fashion brands and production houses, I see the same pattern. Demand exists. Talent is undeniable. But profit remains inconsistent. The bottleneck is an inability to convert demand into repeatable, predictable income. 1. Pricing Most pricing is reactive and emotional. If you don’t know your cost structure, your client becomes your pricing strategist. Under-pricing is an identity issue. Many founders still see themselves as artists, not operators. I’d fix this by starting with a non-negotiable price floor, then later introducing productized service packages. 2. Systems If your business can’t run without you for two weeks, it’s not a business, it’s a job. When workflows live in people’s heads, every project starts from scratch. Every delivery depends on one person being present. This kills scalability. I’d prioritize simple SOPs for recurring tasks and basic project tracking. 3. Governance Too many creative SMEs are personality-driven. No role clarity. No advisory structure. No accountability. Governance isn’t for large corporations, it’s a survival tool in volatile markets. I’d fix this by separating ownership from management thinking and defining roles even in a two-person team. 4. Financial discipline Revenue is not profit, but most treat it as such. Personal and business finances are put together. Invoices go out late. You cannot manage what you refuse to measure. I’d fix this by separating accounts immediately, doing a monthly financial review, undertaking cash flow forecasting and enforcing payment terms strictly. Fix the foundation of your creative business and funding becomes a growth tool. That’s where true scale begins.

The creative sector contributed £123 billion to the UK economy in 2024, employing 2.4 million people (around 7% of all jobs). Music, performing, and visual arts accounted for roughly 311,000 of these roles. Despite its contribution, cultural organisations have lost over 11,000 jobs between 2023 and 2024. 79% of artists report not earning enough from their art alone to cover living costs, leading to increased financial stress and mental health challenges. Nearly 28% of creative jobs are held by self-employed workers, with this rising to 66% in music, performing, and visual arts. This often means limited job security and lack of benefits. Wage inequalities add to these issues. Under 21s in the cultural sector earn 43.7% less than their peers in other industries, creating steep barriers for young people trying to build creative careers. Research by Edinburgh and Sheffield Universities found that individuals from privileged backgrounds are four times more likely to work in creative industries than those from working class backgrounds. Women, who make up about 38% of the creative workforce, earn just 83p for every £1 earned by men. Regional pay disparities also exist, with wages in London being more than twice those in the North East. Only 7% of workers in the sector come from Black, Asian, and minority ethnic backgrounds. The UK government plans to cut the Department for Culture, Media and Sport (DCMS) budget by 1.4% over the next few years. These cuts risk increasing job insecurity and reducing support for artists trying to establish sustainable careers. This is why innovative business models matter. At MTArt Agency, we help artists diversify their revenue streams beyond traditional gallery sales, which has allowed us to hire and contract a more diverse workforce of creatives and artists across our various projects. We also back our artists by taking below average commissions, allowing them to keep a larger share of their income. This mixed revenue approach and fair commission model provide our artists with stable, sustainable incomes and long term career growth. If we want a thriving creative economy, we have to invest in the people behind it. That means rethinking how we value, support, and sustain artistic talent and staying committed to those who are shaping our culture. Photo credit: Our artist Claire Luxton

In her latest report, Dream VC fellow explains how to prepare your creative business to receive investors’ money 🤑 The report by Dream VC Investor Accelerator Venture Fellow Julie Goerig (Lanckriet), titled “Exploring the African Creative Economy’s Economics”, provides a detailed analysis of the business models shaping the continent’s creative industries. Drawing from 40+ interviews with African ICC professionals, it explores revenue patterns, investor expectations, and strategic insights to bridge the financing gap (it was a pleasure to share my two cents here!). 👉 Access the full report: link in the first comment One of the critical questions raised is whether creative businesses are actually structured in ways that make them investable, especially from the standpoint of equity investors. Spoiler: many are not.😬 But what makes a creative business fit to receive investor money? ✅ Clear product-market fit ✅ Recurring and predictable revenue ✅ Legal and administrative formalization ✅ Clarity and simplicity of the offer ✅ Scalable production model ✅ Alignment between growth objectives and funding strategy ✅ Realistic and measurable financial projections Conversely, what would not make a creative business fit to receive investor money? ❌ Absence of cashflow visibility ❌ Dependence on grants ❌ Lack of financial literacy among the founding team ❌ Poor legal structure and IP management ❌ Lack of understanding of the investor's exit strategy ❌ Talent-led structures with no defined growth roadmap ❌ Short-term thinking driven by urgency rather than vision If you ticked at least two boxes in the second list, chances are that equity investment might not be the right fit for your creative business (just yet). A more effective strategy could be to focus on other financing opportunities, starting with the optimization of your revenue model, which remains the most sustainable way to keep a business afloat, and the most efficient path to making it thrive. We talk all the time about the lack of funding, and yes, there is a real gap to bridge. But the truth is, we need to learn how to make money before others can trust us with theirs.🤌 Grants aren’t sustainable. VC money is out of reach. The one door that always remains open to sustainably fuel your business lies in your clients’ pockets. *** For more contents such as this, follow 💌Savannah Creatives Digest, the newsletter that empowers African creative entrepreneurs.💡Business tips + 👀 Industry news + 🛠️ Creative tools + 🌶️ Hot opportunities. Every month. 👉 Link in the first comment

The $100B Question No One Is Answering Thursday last week, I was at Madhouse with Bayo Omoboriowo in Unilag, where the team hosted the Country Director of the World Bank in Nigeria Ndiamé Diop. The room was full of incredible minds, discussing the future of Nigeria’s creative economy. As I listened, my mind raced with questions—questions I didn’t get the chance to ask. A few weeks before that, at the Music Policy Assembly, a representative from Nigeria’s Bank of Industry spoke about the challenges of funding creative businesses. The same frustrations echoed: why does a sector so full of talent, impact, and revenue struggle to access financing? - Why do banks hesitate to invest in creative businesses? - Why do financial institutions struggle to see IP as a bankable asset? - Why are creatives forced to rely on unstable, informal funding models? Africa’s creative economy is a $100B opportunity, but it remains undervalued and underfunded. We need to change this. - IP-backed lending—Why can’t a music catalog or a film script be collateral for a loan? - Web3 & Blockchain Finance—What if creatives could raise funds through NFT-backed investments or smart contracts? - Investment-readiness programs—How do we equip creatives with financial literacy to access structured capital? - Policy reform—Can regulators finally recognize creative industries as economic drivers and structure tax incentives? These are the conversations we need to also have. The real challenge isn’t talent—it’s financial infrastructure. Creativity is not just art; it’s an asset class that can drive jobs, wealth, and economic transformation. What do you think? How do we unlock funding for Africa’s creative industries?

The creator economy has reached a transformative moment, driven by entrepreneurship and ownership rather than mere influence. MrBeast exemplifies this shift, turning his Feastables chocolate brand into a $250 million business—generating more profit than his entire media empire. While his high-production viral videos often run at a loss, his product ventures like Feastables and Lunchly are fueling long-term growth and profitability. He’s part of a broader trend: Emma Chamberlain’s Chamberlain Coffee, Alex Cooper’s Unwell, and Logan Paul’s Prime have each successfully transitioned from content into commerce, creating powerful brands with significant market impact. Investment momentum highlights the economic viability of this creator-led model. Alix Earle strategically invested in SipMARGS’ recent $3 million funding round, and Gloss Ventures raised $15 million, positioning Sacheu Beauty toward $100 million in sales. These successes demonstrate that creator-founded brands can build sustained, meaningful business value. For brands and investors, the lesson is unmistakable: creators have evolved into powerful founders. Leveraging built-in distribution channels, deep audience connections, and strong authenticity, the next wave of market leaders will merge influence with ownership to redefine brand building for years to come. #CreatorEconomy #InfluencerMarketing #BrandBuilding #StrategicGrowth #DigitalEntrepreneurship

I took some time to read Visa’s 2025 Creator Economy Report, and the data reinforces what many industry professionals already knew. The creator economy has moved far past the side hustle phase. Creators are running real businesses: • 88% expect their revenue to grow in the next year • 68% see themselves as small business owners • The industry is projected to reach 500 billion dollars by 2027 But even with this growth, many creators still lack support: • 71% are self taught in financial management • 66% are self taught in business strategy • 76% are self taught in contract negotiation • And 86% finance their work with personal funds instead of business tools This gap impacts the entire partnership ecosystem. When creators struggle with financial tools, payment delays, or contract clarity, partnerships become slower, harder to scale, and more difficult to measure. The report shows that delayed payments alone lead to missed trends, production delays, and real financial stress for creators. If we want stronger campaigns, faster execution, and more predictable outcomes, we need to support creators with better systems. Clear strategy, streamlined payment tools, and accessible education help creators grow more confidently, which improves every brand collaboration built around them. I see creators step into real entrepreneurial leadership when they have the right infrastructure behind them. That is where long term impact and steady revenue start to grow. As we move through National Entrepreneurship Month, it is a good reminder that creators aren't just content makers. They are real business owners who need better systems so our entire partnership ecosystem can grow with them. 👉🏾What support do creators need the most right now, and how can we work better together? Morning Consult #CreatorEconomy #Entrepreneurship #DigitalMarketing #StrategicPartnerships