Launching an Orange Future analyzes the situation of creative and cultural entrepreneurs in the region
Around 70% of creative entrepreneurships fail because of bad financial planning, lack of understanding of the market and poor cash flow, according Launching an Orange Future, the new e-book released by the Inter-American Development Bank (IDB) in collaboration with the Failure Institute.
The e-book collects information from more than 200 creative entrepreneurs in the region and publishes the results through 15 questions that define the talents of Latin America and the Caribbean. The study reveals that even though 90.4% of creative entrepreneurs completed a university degree, they learned to do business “on the go”.
"The Failure Institute created an algorithm that we have called the 'Index of Health of the Creative Entrepreneurship' (ISaEC), which served as a diagnostic tool to evaluate the time of the operation of the company, the initial investment, its monthly sales and solvency, the number of partners and employees, the degree of satisfaction and the level of knowledge of tax obligations," said Leticia Gasca, director of the Failure Institute and co-author of the study.
Launching an Orange Future shows that 65.2% of creative entrepreneurs don’t have intellectual property rights or copyright registration. Among the reasons for not having them registered, 17,4% declared the process was too expensive and the rest admitted they did not know how to do the process.
According to the Institute of Failure, the proportion in entrepreneurships is 75% men and 25% women. In creative entrepreneurships, however, it is 62% men and 38% women, which reaffirms that the orange economy offers great opportunities to boost the growth of women entrepreneurs in LAC.
"At the IDB, we know that creativity in Latin America and the Caribbean is an unlimited resource. We live in a region of ideas that, with the right support, can boost our economy and provide a better future for all. If we promote the entrepreneurial spirit of citizens, our countries can take advantage of a resource they already have: a tradition of invention and ingenuity, a cultural heritage of great wealth, and the demonstrated creativity and sense of innovation of its entrepreneurs, creators and artists," said Alejandra Luzardo, lead specialist of the IDB and one of the authors of the book.
Launching an Orange Future also contains the first regional directory of more than 300 incubators, accelerators and coworking spaces, which will help with the mapping and strengthening the region's creative ecosystem.
To read the complete electronic book and learn more about creative entrepreneurs in Latin America and the Caribbean, visit http://www.iadb.org/launching-orange-future
About the IDB
The Inter-American Development Bank is dedicated to improving lives. Founded in 1959, the IDB is the main source of long-term financing for the economic, social and institutional development of Latin America and the Caribbean. The IDB also conducts advanced research and provides policy advice, technical assistance and training to public and private sector clients in the region.
About the Institute of Failure
The Failure Institute was born as the research arm of the Fuckup Nights, a global movement where business stories and failed projects are shared. Due to the increase in documented cases of failure to which they had access, the Failure Institute assumed the mission and responsibility of sharing information through studies and publications. The mission of the Failure Institute is to help those who lead business, academia and public policy make better informed decisions.