DISCE - Between labour markets and entrepreneurship

The above implies that pursuing for creative identity may put creative professionals’ income generation at risk. Therefore, we hypothesize that: H1: Strong creative identity increases the likelihood of income inadequacy Recent studies stress that some creative professionals with strong entrepreneurial orientation make acceptable revenue, but this does not hinder them to experience autonomy and creativity (Nemkova et al., 2019). Entrepreneurial identity also concerns creativity, a need for control, strong desire for freedom and autonomy (Espíritu-Olmos & Sastre-Castillo, 2015; Werthes et al., 2017). Entrepreneurial identity can be a property, which generates meaning and self-definition for entrepreneurs (Mathias & Williams, 2018) in a similar ways as creative identity for creative professionals. Entrepreneurial identity can be an asset or a liability (Radu-Lefebvre et al., 2021). As an asset entrepreneurial identity operates as a psychological resource supporting the entrepreneurial process (Shepherd & Haynie, 2009) whereas as a liability entrepreneurial identity may trigger escalation of commitment (Rouse, 2016), for instance. Here, we focus on entrepreneurial identity as an asset supporting creative professionals’ income generation.

Kohn and Wewel (2018) found that in comparison to businesses in non-creative sectors, creative entrepreneurs often start businesses on a small scale, on a part‐time basis, and with less financial resources. In his study, Albinsson (2018) found that some musicians who could identify themselves as entrepreneurs were able to make their main income from music. 70

Moreover, an entrepreneurial identity may reduce artists’ efforts to complement their art income with nonart related jobs (Lindström, 2016). This implies that perceiving oneself as an entrepreneur might alleviate challenges of income inadequacy. Hence, based on the above we hypothesize that: H2: Strong entrepreneurial identity decreases the likelihood of income inadequacy In addition to their identities, individuals’ skills may affect their income generation. We focus on business skills, which shape individual’s ability to work (Jackson & Chapman, 2012). For instance, entrepreneurial skills needed in new venture creation range from the ability to recognize new business opportunities to abilities needed to cope with uncertainty and being creative (Bacigalupo et al., 2016; Reis et al., 2020). Contextually, creative professionals’ employment conditions and work require the above skills to navigate through uncertainty and being creative in producing the creative outputs and finding ways to generate income. Recent research highlights that entrepreneurial skills support creative professionals in building economically and creatively sustainable careers in creative economies (Bartleet et al. 2019; Wyszomirski & Chang, 2017; Scott, 2012). However, we need to reach beyond the skills needed in creating new ventures to generic skills that concern running a business or securing income.

Such skills are multifaceted and may include areas like, for example, accounting, financing, marketing and production (Smilor, 1997). Foss and Saebi (2018) highlight that business models are closer to recognizable constellations of activities dedicated to value creation, delivery, and appropriation. Therefore, we consider that skills needed in crafting a business model represents such a balanced set of business skills. Creative professionals similarly to organizations operating in creative economies seek to diversify their incomes streams, increase their independency for public funding, or consolidate and effectively manage their resources, build stakeholders’ relationships, and increase public awareness among their stakeholders to gain legitimacy (Carlucci, 2018). These influence the ways through which creative professionals might better make sense of who their audience is, what professionals can offer to them, how and with which resources the offerings are created and how this generates income (see Foss & Saebi, 2018; Ostervalder, 2004; Wirtz et al., 2016). Therefore, we assume that with better business skills creative professionals will have less difficulty in generating income.

Hence, we hypothesize that: H3: Business skills decrease the likelihood of income inadequacy Carter and Carter (2020) suggested that creative individuals’ identity and the development of their offerings influence each other. However, when relying on one’s work to create identity and generate income, one might face tensions between commercial and non-commercial goals of work. Those with tendency for being creative and having creative identity may pursue issues that will not translate into income but provide freedom for creative activity and autonomy. For instance, entrepreneurs in creative economies have to manage simultaneously their creative freedom and business performance (Wilson & Stokes, 2005). Haynes and Marshall (2018) illustrate that musicians usually employ business or entrepreneurial skills, such as planning revenue generation, business activities, selling and innovating, but they are not willing to characterize themselves as entrepreneurs. This suggests that if one obtains skills that help her to combine the needs of the audience and the need of herself, one may overcome the challenges concerning the income generation. Previous research shows that although possessing strong entrepreneurial skills, self-employed creative professionals will not necessarily identify as entrepreneurs (Coulson, 2012).

Following this logic, artists’ identities range from a ‘bohemian’ to more ‘entrepreneurial’ identity, but for both the practices and modes of working remain similar (Lindström, 2016). This implies that irrespective of their identity, creative or entrepreneurial, solid business skills may result in a better financial wellbeing. Accordingly, we hypothesize that: H4a: Business skills decrease the effect of creative identity on the likelihood of income inadequacy 71

H4b: Business skills increase the effect of entrepreneurial identity on the likelihood of income inadequacy In testing our hypotheses, we used hierarchical logistics regression analysis. Table 5 provides our regression results separately for main effects, interaction effect, and finally controlled models. Our results show that the creative identity increases the likelihood of income inadequacy (β=1.43, p<0.01). This result supports our hypothesis H1. In addition, our results show that entrepreneurial identity is not significantly associated with the likelihood of income inadequacy, and hence, our hypothesis H2 is not supported. However, our results show that higher levels of business skills decrease the income inadequacy (β=0.96, p<0.05). This result supports our hypothesis H3, which implies that business skills buffer the challenges concerning creative professionals’ income. Table 5 Logistic regression models testing the effect of perceived identities and their interaction with business skills on income inadequacy Model 1 β 1.43** 0.97 0.96*

Creative identity Entrepreneurial identity Business skills Creative identity * Business skills Entrepreneurial identity * Business skills

Model 2 β 1.44* 0.97 0.96

Model 3 β 1.45** 2.32 1.04

Model 4 β 1.30 1.95 1.00

0.97*

1.00 0.98

1.00

Age Gender (1=female) Education (1=tertiary or higher) Education covered business subjects (1=yes) Sources of income dummy (1=one) Number of professions dummy (1=one) Work experience in CCIs (years)

1.02 2.00** 1.19 1.59 0.37** 0.83 0.98

n 410 410 410 410 Nagel R2 0.04 0.04 0.06 0.15 DV=Income inadequacy (reference category 1=yes), †p<.10, *p<.05, **p<0.01, ***p<0.001. a)Reference category: manager/entrepreneur, b)From OLS regression analyses.

Finally, the models (2 and 3) with interaction terms show that business skills do not interact with the relationship of creative identity with income inadequacy. Accordingly, the hypothesis H4a is not supported. However, the results illustrate that business skills moderate the relationship between entrepreneurial identity and income inadequacy (β=0.97, p<0.05). The effect is small, but in order to detail this interaction, we plotted it (Figure 5). The results reveal that together with higher business skills identifying with the entrepreneurial identity decreases the likelihood of income inadequacy. However, the interaction is minimal with weak identification with entrepreneurial identity. The latter implies that if creative professionals do not identify with the entrepreneurial identity, the likelihood of income inadequacy remains high despite the level of business skills. If a person identifies with the entrepreneurial identity, the income inadequacy is still likely, if one considers not having business skills.

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Figure 5. Effect of the interaction between entrepreneurial identity and business skills on income inadequacy In addition to assumed relationships between identities, business skills, and income inadequacy, the results reveal that the likelihood of income inadequacy is twice as high among women compared to men. This supports the previous findings concerning that women earn less than men (Bobbitt-Zeher, 2007; Roszkowski & Grable, 2010). Furthermore, if creative professionals have an opportunity to generate their income via only one source, the likelihood of income inadequacy is lower. This implies that if one has a single solid source of income, such as a steady monthly salary, income inadequacy is not an issue, but gathering the income from multiple sources is rather a reactive attempt to cope with income inadequacy.

7.3. Role of creative and entrepreneurial identity in income formation This chapter investigated income inadequacy among creative professionals. Instead of investigating the work conditions, this chapter focused on the role of identity and business skills in income inadequacy. The findings suggest that of the two studied identities, creative identity matters in creative professionals’ income, but in a challenging way: Creative identity increases the likelihood of income inadequacy. This implies that adopting creative identity puts one’s income formation at stake. Creative professionals’ work identity is characterized by creativity, autonomy, and self-investment (Neff et al., 2005), which shape the roles individuals adopt and the ways they perform their work (Walsh & Gordon, 2008). Hence, it is both intriguing and alarming that adopting the creative identity implicitly creates a challenge of generating enough income for covering the living costs. Theoretically, this implies that if identity is considered as a property, as something, which an individual has, adopting a certain identity can be an economic liability, but a personal asset at the same time (Radu-Lefebvre et al., 2021).

Previous research has shown that creative professionals’ earnings can be based on portfolio working and careers (Ball et al., 2010) which may make it possible for them to pursue their creative activities parallel with other jobs in order to make more or at least enough money (Bartleet et al. 2019; Tarassi, 2018) for a living. Still, this finding implies that the negative relationship between creative identity and sufficient income might even amplify the tension between being creative and income generation. Despite the fact that entrepreneurs in creative economies might develop an entrepreneurial

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identity (Werthes et al., 2017), the findings did not find any support for the direct relationship between entrepreneurial identity and income. Alongside with identity, we stressed the role of business skills in income inadequacy. The findings show that higher levels of perceived business skills actually decrease the chances of income inadequacy. According to previous research, entrepreneurs in creative economies with strong entrepreneurial skills are not specifically oriented towards financial rewards (Cnossen et al., 2019). However, our findings suggest that creative professionals still benefit from having business skills. Indeed, creative professionals’ employment conditions require skills to navigate through uncertainty and being creative in producing the creative outputs and finding ways to generate income (Bartleet et al. 2019; Wyszomirski & Chang, 2017; Scott, 2012). Furthermore, previous studies have also indicated that even if one would possess good business skills, self-employed creative professionals do not necessarily identify as entrepreneurs (Coulson, 2012). Intriguingly, our findings suggest that business skills together with entrepreneurial identity lower the chances of income inadequacy. Theoretically, our findings contribute to the debate on the role identity (Stryker & Burke, 2000) and its meaning in guiding individuals’ choices.

Our findings highlight how creative and entrepreneurial identities influence the income of creative professionals. Among creative professionals, creative identity decreases their income. The strength of self-concept and identity are important in predicting entrepreneurial action and its outcomes (Cardon et al., 2009, Farmer et al., 2011; Shepherd & Haynie, 2009). Hence, our study implies that perceiving oneself as a creative person, having a creative identity, is about how creative professionals want to define themselves in front of others (Berkman, 2014; Stryker & Serpe, 1994). It seems that the role identity overrides the economic realities of everyday life, and this might be part of how work conditions and work itself gives meaning and defines one’s role identity (Dutton et al., 2010; Ibarra, 1999). Our study highlights the interplay between different identities and business skills among creative professionals when pursuing creative activities for their living. The findings show how business skills may buffer income inadequacy when one has strong entrepreneurial identity. Our study provides new insights into understanding income formation and suggestions on coping with unsecure income among creative professionals. Our findings highlight how creative and entrepreneurial identities influence the income of creative professionals.

A creative identity is connected to the income inadequacy: earning less than the living costs. Further, business skills may buffer income inadequacy when one has strong entrepreneurial identity.

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8. Inclusivity and sustainability of entrepreneurship in creative economies The overall aim of this report has been to gain in-depth understanding of creative work between labour markets and entrepreneurship in the creative economies in Europe. The research question addressed was: “What are the forms of activity (i.e. paid and unpaid work and self-employment) in the creative economies with a particular focus on inclusive and sustainable forms of activity, and how can they be supported?” This was done by relying on a purposive sampling strategy within the larger DISCE regional dataset by identifying six participants in each studied country (Belgium, Finland, Hungary, Italy, Latvia, the Netherlands, Sweden, the UK). The analysis is focused on those participants that are engaged with freelance work, self-employment or entrepreneurship activities (at least part-time). This report has investigated the different forms of paid, unpaid work and self-employment in the creative economies. In this discussion we surface how many of practices in the creative economies can be simultaneously viewed as an asset and a liability. In our interpretation these dualities make it also difficult to suggest changes: by removing a practice, one not only removes liabilities but also assets.

The individuals in creative economies typically operate in multiple labour market positions (as waged workers, freelancers, self-employed, entrepreneurs) in ways that together characterise their work as portfolio working. In portfolio working, the boundaries between the different labour market positions are blurred, many positions can be occupied simultaneously and the shifts between the different positions are frequent. The combination of different types of work and entrepreneurial activities is considered an opportunity as it provides flexibility and variation in their work. It works as an important enabler for creative activities that are at the centre of decision-making: the different types of work are organised so that it facilitates creative work. On the whole, the participants seemed content with their ability to remain active in the creative economy and this was supported by having many jobs or different assignments. This is the main reason why the portfolio work is the preferred scenario also for the future. Having a steady salaried employment or focusing on income-generating entrepreneurship is understood to put the creativity in creative work at risk. In salaried position, there is a risk that the creative work becomes a dull routine and no longer provides joy.

In entrepreneurship, finding enough customers and the role of paying customers in determining the creative output becomes too restrictive of their creativity. The positive side to portfolio working is that as the creative work can be organised flexibly and via different routes – in entrepreneurial ways - it is open to many kinds of actors in the field. By engaging in different forms of portfolio working, they can remain active in the creative economies and focus on doing what they find meaningful and important. Autonomy, versatility and meaningfulness in their work as creatives are important resources for our study participants. Thus, the creative professionals are able to reap the intrinsic (entrepreneurial) benefits of having autonomy, versatile and meaningful work and overall high levels of job satisfaction. Oftentimes the creative entrepreneurs do not need major funding for entering the field. There is no need for major investments, but their activities are primarily based on their own (or family) resources that they mobilise or they have access to through their communities and (close) networks. For creative freelancers and entrepreneurs, creative freedom and passion are driving forces and they tend to override economic and business issues. Freedom relates in particular to their ability to engage in creative work, for which they have passion for.

Creative entrepreneurs and freelancers feel insecure about their own (business) skills but their passion for creative activities pushes them to acquire and learn new skills by doing. Experimenting and 75

learning by doing are integral and natural parts of creative work. From this perspective, the creative economies can be viewed as highly inclusive to those interested and having passion for the field as the entry barriers are relatively low. The creative freelancers seek support from their peers and role models, and their networks. These provide important resources, complementary skills, expertise and capacities as well as energy and motivation. Creative places and spaces are important resources to co-create new offerings with the networks for new audiences but also as forms of mental co-working spaces to gain support, confidence, and collegiality. The different actors from different sectors together form the regional creative ecology, entrepreneurial ecosystem, in which creative actions take place. Collaboration is of vital importance. Yet, the strong focus on the need of networks also suggests that there are barriers for young and early career professionals, in particular when trying to establish themselves in a new location. Not having access to relevant networks or not being embedded into the existing networks can be a liability for the creative entrepreneurs. While the creative networks and spaces are important and inclusive, our findings suggest a desired exclusion from entrepreneurship (networks).

Our analysis surfaced that irrespective of the fact that these individuals work as freelancers, self-employed and entrepreneurs, the entrepreneurial identity operates as a restrictive identity resource. Most participants wanted to distinguish and separate themselves from the stereotypical entrepreneurs and the entrepreneurial identity who is (solely or mainly) motivated by money and the profits as their main goal. There was not much recognition of the different forms of entrepreneurship (e.g. of social entrepreneurship) and related entrepreneurial identities by the participants even if the goals for addressing the needs of the community or advancing a social cause resonated well with the participants. This distinction between entrepreneurial identity and their creative identity was further underscored by finding business as an uncomfortable territory with difficult, unfamiliar language consisting of contracts, pricing models and focusing on certain customers. Thus, they felt insecure about their business skills and their ability to ‘speak business’ and their reluctance to embrace these skills and abilities, as they are outside the preferred landscape of creativity. More importantly, while the mechanisms of hybrid professional identities have been surfaced in other domains (e.g.

in case of academic entrepreneurs), this kind of hybrid identity seemed less prevalent in case of creative entrepreneurs. It seems that the creative identity is cultivated in education at different levels, but less emphasis is given to cultivating entrepreneurial identity or business skills. In this sense, while the creative economies seem inclusive of diverse forms of creative work and their activities, the creative economies seem somewhat exclusionary to entrepreneurship as a legitimate endeavour in the creative domain. The findings corroborate the low-income level of creative freelancers and entrepreneurs, which seem widely acknowledged. Working with low pay or even for free seems also somewhat expected or accepted by the individuals themselves. This is the price they are willing to pay in order to be able to pursue their creative interests and remain active in the creative economies. This also explains the engagement in portfolio working that enables them remaining active in their creative activities but hampers their ability to develop any single form of activity. This can mean that they need to rely on their personal savings or household income to compensate for the lacking or low income.

In our interpretation this is one of the main reasons for having multiple jobs and entrepreneurial activities at the same time and preferring this kind of a portfolio working also in the future. Hence, we suggest that creative freelancers and entrepreneurs engage in highly entrepreneurial behaviour by being experienced in living with the uncertainty, being resourceful and engaging entrepreneurial experimentation and learning. Simultaneously, they are highly exposed to the dark sides of entrepreneurial behaviour: not having sufficient income to cover even their basic living costs, attempting to do everything by oneself to reduce costs, and experiencing high levels of insecurity and stress. Hence, our findings bring forth that creative professionals behave entrepreneurially and are able to reap the 76

intrinsic benefits but that their entrepreneurial behaviours are not rewarded with related extrinsic entrepreneurial benefits. Thus, there seems to be an ‘unsustainable creative deal’, which is reinforced both by the individuals and the environment at large. This deal seems to be a kind expected, if not an accepted “rule of the game”. At the individual level the need for money and importance of financial gains is strongly rejected by the participants as a valid aim or focus. This was explained by ‘making do with little’ or by relying on selfsufficiency as an asset but self-sufficiency can be also a liability: time and energy are used in non-productive routines. By experimenting and learning creative freelancers and entrepreneurs acquire and organise the scarce resources to which they have access. This may result in new offerings, techniques, processes and materials, new pricing methods, new contacts and networks. However, the short-term contracts and portfolio work may push the creative entrepreneurs to bear the costs of these experiments themselves (from their own or family resources). Our findings suggest that possessing business skills makes it easier for creative entrepreneurs and freelancers to run their businesses and strive for economic sustainability. Yet, the economic aspect is downplayed by their motivation to pursue creative activity and focus on quality outputs.

Hence, the strong dichotomy that emphasises the need to choose between the business or creativity goals seems to hamper the (economic) sustainability. Most participants renounce from identifying with the (classic) entrepreneurial identity but rather use it is as their anti-identity in constructing their creative (entrepreneurial) identity. This surfaces an important paradox: money is necessary for the self-actualization, but it provides a threat: a potential slippage to the entrepreneurship side. Further, our findings highlight how creative and entrepreneurial identities influence the income of creative professionals. A creative identity is connected to the income inadequacy - earning less than the living costs. Further, business skills may buffer income inadequacy when one has strong entrepreneurial identity. While in the creative economies the individuals in their own networks and communities may experience high recognition, the findings indicate that overall the appreciation of creative sectors is deemed insufficient. This is reflected in the continued practice of even public sector organisations for example to demand free labour or low paid labour from the creative professionals.

Given that this is a systemic challenge, changing the rules of the game and promoting institutional change is a complex process involving different types of forces and agents, of ‘institutional entrepreneurship’ (Battilana et al., 2009). Public support, for example funding, is an important resource for creative freelancers and entrepreneurs. Yet, it is not always seen to encourage creative endeavours and, thus, the way the public support is organised may also propose important barriers for the renewal and sustainability of the creative economies (for example, if safeguarding primarily the interests of the established bodies and projects). However, sustainability in the creative economies is not merely an economic question. While passion was identified as an important resource and driver, and as an important resource it is necessary to acknowledge that passion can have both the positive (harmonious) and negative (obsessive) side. Passion can lead to positive outcomes (ability to engage in their activities) but also negative outcomes (stress and burnout). While the participants seemed highly experienced in dealing with the insecurity and stress, this is not necessarily sustainable in the long run. Overall, the creative economies represent a paradoxical field, which is also highlighted in their experiences of Covid-19.

It has proposed major impacts on creative economies in terms of reduction in work assignments and income (even if the impact has not been equal among all actors). It has invited and pushed the creative entrepreneurs and freelancers to be innovative and reconsider new ways to operate and reach their audiences. Some of them may be sustainable over the long run while others remain emergency activities. It 77

is interesting that even Covid-19 was interpreted to having positive outcomes such as time for individual development, break or creativity. Hence, this suggests the creative economies are equipped with high-level of resilient responses to any form of adversity. “When life gives you lemons, make lemonade” seems to be a cherished positive can-do attitude. The challenge with it is of course that it hides any systemic problems and challenges from scrutiny and reinforces the “unstainable creative deal” as the taken-for-granted rule in the field and overemphasizes the role of the individuals in dealing with the challenges within the creative economies.

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Appendices Appendix 1 – Case Study Methodology Introduction This appendix includes detailed information about the data collection processes and initial data analysis undertaken by DISCE consortia. It builds on the DISCE case study framework that has been compiled from the deliverables D3.1, D4.1 and D5.1 (Gross et al. 2019). In the case study framework, we set-up the DISCE approach and motivated the choice to undertake 10 regional case studies across Europe (in Northern Europe, the UK, Central, Eastern and Southern Europe) building on “the desire to understand complex social phenomena.” (Yin 2014: 4). We also provide extensive details about the motivation behind the case studies choice. Ten, small-scale European cities with populations of between 100-150,0000 were selected as case studies with a series of research methods undertaken to explore the overarching DISCE research question: What are inclusive and sustainable creative economies and how can they be developed? Building on the case study research framework and ecological thinking (De Bernard et al. 2021; we approach each case study via the need to investigate across scales (Comunian, 2019) from micro (individuals) to meso (organisation and interconnecting structures) and macro (the broader policy frameworks and contexts).