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Friday, November 11, 2011

The Business of Creativity

The Americans for the Arts (AFTA) Creative Industries report accounts for more than 756,000 businesses nationally involved in the creation and/or distribution of arts, and these businesses employ nearly 3 million people. In Michigan, 24,306 arts-related businesses – which represent approximately 4 percent of the state’s total businesses – employ more than 77,000 people.

From a tax revenue perspective: assuming an average nonprofit salary, estimated at approximately $30,000 per year and state income tax at 4 percent, the average arts employee will pay approximately $1,200 in state taxes per year – more than tripling the state’s current investment in the arts sector.

But the business of creativity goes deeper than your typical employment and tax statistics. Let’s look at the contributions of the creative industries from another vantage point, something few sectors can boast: tourism, the draw of people (and their money) to and around the state.

According to the MEDC, arts, culture and historical tourism generated approximately $2.1 billion in leisure spending by tourists in 2010, an increase of $300 million from 2008. This represents nearly 17 percent of the total tourism dollars generated in Michigan. Further, tourists taking part in the magnetic destinations supported by rich arts and culture spend more and stay longer than any other type of attraction.

To help give you some perspective on how significant these numbers are, consider that this revenue is greater than that generated by hunting and fishing, boating and sailing, snowmobiling and skiing, sporting events and golf courses combined.

Even in the most challenging of times, arts and cultural attractions continue to draw people to and around the Michigan, as more than 86 percent of the aforementioned tourists were Michigan residents, exploring and supporting their own region.
 
The creative industry, weaving its innovation across and within businesses of all types to evolve our future, coupled with the remarkable financial gain the industry brings to the state, is a major force in poising Michigan for a triumphant return and an extraordinary future.

2 comments:

  1. The Americans for the Arts calls itself the largest non profit arts advocacy agency in the country and says it is " dedicated to representing and serving local communities and creating opportunities for every American to participate in and appreciate all forms of the arts."
    Americans for the Arts is a case example of the problems facing the arts in the future and the problems with the post above.
    The "Creative Industries" figures cited represent an industry of organizations and agencies that say they support the arts but don't really support the artists. The AFTA has no artists on it's board which is made of up lawyers, media business people, and other arts administrators.
    The employment figures cited represent "creative industries" that present the arts but yet we have no real system in michigan to support art making. Local art support through arts organizations and local arts councils has changed from supporting artists and the work they do to providing youth art education and arts entertainment programs. Both are fun and important but only represent two aspects of the arts.
    The systems of support from the NEA down through the regional, state, and local arts organizations has become politically safe and culturally cookie cutter in style and taste. This facts doesn't bode well for sound cultural growth in the state.

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  2. I agree with you, Richard. Most of the grant or sponsorship programs out there are for the benefit of arts organizations and/or consumers ( the Kresge Fellowship program is a notable exception). Artists are too often left to fend for themselves. But without individual, successful artists, we would have no vibrant arts "product" that is so critical to our economy and quality of life in Michigan.

    I run a program called Art Meets Business which offers individual coaching to self-employed artists to make them more successful as business people and artists (or dancers, musicians, writers, actors, or other creative entrepreneurs). The program is four years old, has been extremely well received by Washtenaw Co. artists, and is unlike anything else I've found in Michigan or elsewhere, yet we still struggle to find sponsors and funding. This is the perfect program for an economic development organization that wants to help the arts sector succeed! Even so, it's just one tiny offering in a sea of possibility. We need MANY more like it.

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