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Small creative industry rms: a development dilemma?

Ian Chaston
The Business School, Ponticia Universidad Catolica del Peru, Lima, Peru
Abstract
Purpose The purpose of the paper is to examine whether the standard support service intervention model of providing training programmes to stimulate business growth is an effective economic regeneration model in the case of small creative industry rms. Design/methodology/approach A survey of small creative rms was implemented in the south west UK. The aim of the survey was to gain owner/manager views about participation in training. Findings The results reveal the majority of rms are interested in a lifestyle based on fullling creative aspirations. Very few respondents exhibit any interest in participating in training schemes aimed at enhancing business performance. Research limitations/implications The limitations of the research are that it only relates to creative industry rms and was restricted to a single geographic area and only generated data from micro-enterprises. The implications of these ndings are discussed in relation to whether regional development agency policies in rural areas should primarily be directed towards supporting industry-led expansion of existing creative industry small rm clusters. Practical implications The results provide useful guidance in relation to avoiding public sector expenditure on support schemes that are unlikely to stimulate signicant economic growth in the small business sector. Additionally a more cost effective approach to stimulating growth in small creative rms outside of metro-city areas is presented Originality/value Previous researchers have raised questions about the benets of offering business training to small rms. This study provides additional knowledge in relation to this issue. More importantly, however, the study offers conclusions about the possible need for support agencies to radically revise their current strategies in relation to stimulating growth and new job creation in the creative industry sector. Keywords Creative thinking, Economic development, Small enterprises, Training, Business support services Paper type Research paper

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Received December 2007 Revised February 2008 Accepted February 2008

Introduction The successful entry of the Pacic Rim nations into global markets for consumer goods such as cars and electronic equipment in 1970s and 1980s clearly evidenced that Western nations could no longer depend on their manufacturing industries as the primary source of economic growth. Ability to counter key variables such as Pacic nation lower labour costs were perceived as insurmountable obstacles. More recently Western rms have began to recognise that knowledge now represents a critical asset through which to achieve and sustain competitive advantage (Tofer, 1990). The validity of such thinking is demonstrated by Western nation rms success in the new industries such as computer software, the Internet and telecommunications. In the 1990s, there was a tendency by Governments to focus economic policy on seeking to support high technology industry as the primary opportunity through which to build knowledge-based economies. More recently, however, the concept of

Management Decision Vol. 46 No. 6, 2008 pp. 819-831 q Emerald Group Publishing Limited 0025-1747 DOI 10.1108/00251740810882617

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knowledge workers has been extended to other industrial sectors. One area which is being recognised as increasingly important for sustaining economic growth is the creative sector which encompasses areas such as the pure arts, performing arts, design, lm, television and publishing. In Australia, for example, PMSEIC (2003) published a broad ranging report which examined the countrys creative industries and identied strategies through which knowledge workers in these industries could make a greater contribution to GDP. This document has subsequently provided the template for dening the Australian Governments policy in relation to economic development strategies for this sector of their economy. Similar views have been expressed in policy documents prepared for the Singapore (Wong et al., 2006) and UK (The Work Foundation, 2007) Governments. In the case of the UK, underpinning a national policy in relation to economic development of creative industry are subordinate policies evolved at the regional level by the countrys Regional Development Agencies (South West RDA, 2007). The problem facing some of the RDAs, however, is that the commercial wealth generation core of the creative industries, such as lm, television, computing and publishing, are primarily located in major cities. Hence those RDAs responsible for evolving support policies for mainly rural areas face the dilemma that the vast majority of their creative industry operations are micro-rms (i.e. between one and nine employees) most of whom are active in the eld of pure arts and crafts (South West RDA, 2006; Welsh Assembly Government, 2006; The Scottish Government, 2004). It is very usual that the owner/managers of such operations have located their rms in a rural area as the basis for achieving signicant commercial success. Instead their location decision is frequently based on a preference to sustain a preferred lifestyle. Seeking to assist economic growth of knowledge workers in this type of small rm is unlikely to be the easiest of processes. To assist such actions, further understanding is required about the managerial orientation of small rural creative industry rms. Hence the purpose of this paper is to present pilot level research into generating information about small creative industry rms in the south west UK. As the focus of this study is only concerned with small creative rms, no conclusions that may be reached should be extended to other sectors of the UK rural economy until further research is undertaken. Artistic orientation The aims of Government agencies are often dened in terms of implementing policies to achieve national or regional economic development through stimulating growth within the small and medium-size enterprise (SME) sector. Such ideas are rooted in the idea that the primary goal of all rms, no matter their size, are explicitly economic in terms of undertaking trading activities to achieve higher sales and prots. In reality, however, only a minority of small rms are driven by nancial objectives (Birley, 1982). The remainder usually perceive their entry into self employment as a route through which to full lifestyle goals such achieving an effective work/life balance, spending time with their family or living in a preferred geographic location (Carson, 1985). The creative industry is a prime example where lifestyle is commonly much more important than nancial gain. In part this is due to self employment issues such as work/life balance and the importance of family. However, another dominant inuence

is the widely prevailing philosophy of arts for arts sake. This view encapsulates the ongoing dilemma of the creative person, should they produce output which is personally satisfying, or generate output for which there is market demand? Fillis (2002) and Townroe and Mallalieu (1993) have found some empirical evidence that creative integrity causes many craft persons to believe that responding to market demand is a demeaning activity. For these individuals remaining true to their beliefs of the need to express themselves through their art totally vitiates any concept related to involvement in the pursuit of commercial gain. In all sectors of the creative industry, there are some individuals who clearly believe that the market should determine output and others who feel this concept is detrimental to their artistic freedom. An excellent example of this scenario is the lm business. In this industry, the activities of the Hollywood studios in their ongoing battle to generate record global sales by producing the next blockbuster is in stark contrast with the small independent European lm producers for whom artistic content is usually the prime motivation driving their endeavours (Kerrigan and Ozbilgin, 2004). Some researchers have posited that the creative persons dilemma is essentially that of being market versus product orientated. For example Tregaer (2003) in her study of 20 small craft businesses, found there were a diversity of orientations. Some owner/managers clearly placed overwhelming priority on adhering to the continued use of traditional production processes and sustaining employment opportunities for craft workers. Their fundamental aim is to ensure the ongoing existence of their chosen craft. These individuals can be contrasted with others for whom understanding and responding to market demands is a fundamental business strategy perceived as being critical in the achievement of personal success. Paige and Littrel (2002) adopted a somewhat broader approach when seeking to understand the attitudes and values inuencing the behaviour of people in small creative industry rms. To ensure identication of all of the possible relevant variables in their study of owner/managers of craft shops in the Southern Highland region of the USA, these researchers instigated a two phase process of in-depth interviews followed by a large scale postal survey. Key factors inuencing the behaviour of respondents included achieving personal happiness, independence, work/life balance, reinforcing local craft traditions, elevating craft traditions, personal gratication from working with crafts and expressing their own artistic skills. The quantitative data set generated by the survey permitted cluster analysis revealing four groups for whom certain key variables inuenced their business activities. Cluster 1 placed greatest emphasis on personal expression from working with crafts and using their artistic skills. Cluster 2 were owner/managers for whom personal happiness, personal expression through involvement in craft activities and nancial success were equally important. Cluster 3 were motivated by wanting to reinforce local craft traditions and achieving nancial success. Cluster 4 seemed indifferent to most issues other than enjoying the location where they have chosen to live and the independence offered by self employment. Another dimension of the activities of small craft industry rms is provided by McCauleys (1999) large scale research using in-depth interviews of small Scottish arts and craft rms in relation to their performance in export markets. The data acquired revealed that for many respondents, their primary focus was on producing an object from which they as the creative person received great personal satisfaction. Their entry into exporting then tended to be a somewhat random event when they encountered an

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overseas buyer visiting Scotland who was seeking new, innovative expressions of Gaelic crafts. These unplanned outcomes can be contrasted with other artists who perceived higher fees could be commanded for their works by entering overseas markets. In these latter scenarios, the artist researched international variation in market need as an antecedent to both starting on a new creation and identifying an appropriate distribution channel for their work. In view of the mixture of attitudes reported by both Paige and Littrell and McCauleys studies it seems reasonable conclude that at one extreme, some creative peoples only concern is their ability for self expression. At the other extreme, other individuals are driven by their desire for commercial success. Hence it seems reasonable to posit that these different behaviours can be contained within the context of an Artistic orientation. Within this orientation, there is a continuum of behaviours ranging from total focus on creative output, a varying mix of creative output and nancial gain through to a total commitment to nancial success. This proposal concerning artistic orientation generates the rst null hypothesis of this study; namely: H1. The aims of small creative arts rms are primarily driven by a desire to be nancially successful. Entrepreneurial orientation Entrepreneurship has been dened as the process of creating something different by devoting the necessary time and effort, assuming the accompanying nancial, psychological, and social risks and receiving the resulting rewards of monetary and personal satisfaction (Hisrich and Peters, 1992). Gartner (1988) argued that entrepreneurship could be dened in terms of innovative behaviour allied to a strategic orientation in pursuit of protability and growth. There have been a number of empirically-based efforts to describe the attributes of entrepreneurship in terms of personality traits, attitudes and management behaviours. The trait-based perspective has predominated and continues to be applied, as exemplied by Utsch et al.s (1999) investigation of the differences between entrepreneurs and managers in East Germany. They observed that entrepreneurs exhibited greater levels of self-efcacy, higher order need, readiness to change, interest in innovation, a Machiavellian attitude (or competitive aggression) and a need for achievement than did individuals who were perceived as managers. The other key difference was that the managers showed a desire for higher control and not granting employees any signicant degree of autonomy. Gartner (1988) attempted to draw a clear distinction between entrepreneurs and owner managers in small business. Similarly Stewart et al. (1998) found that many small business owners were more comparable to managers in larger rms than to entrepreneurs. The latter were found to exhibit higher ratings in relation to variables such as a desire for achievement, a risk-taking propensity and a strong preference for involvement in innovation. These ndings suggest, therefore, that an entrepreneurial orientation is concerned with growth and innovation (Georgelli et al., 2000). The issue of entrepreneurship may also be linked to the wider agenda of regional or national economic growth. For example, Kuratko and Hodgetts (1998) noted the importance of new and smaller rms in the US economy and in particular, in job creating, fast-growing businesses versus lifestyle businesses. The former type of rm,

referred to as gazelles in Birchs (1979) terminology, are identied by Kuratko and Hodgetts (1998) as being leaders in innovation. They cited evidence of the total number of innovations, innovations per employees, and numbers of patents in support of this assertion. Olsen et al. (2000) argued that most employment growth is attributable to the minority of rms that grow quickly. They also noted that business owners motives for growth are not homogeneous and appear to reect experiential and situational differences. Hyrsky (2000), in a factor analytical study of small business managers in Europe, North America, and Australia identied work commitment, energy, innovativeness, risk taking, ambition, achievement and egotistic features as dimensions of entrepreneurship. Georgelli et al. (2000) described being entrepreneurial as a willingness to take risks, being innovative and an ambition to grow. They went on to suggest that the core competencies for entrepreneurship are a capacity for changing business processes, the launching of new products and services and a planning capacity. They noted that not all small businesses are equipped with these capabilities, nor are all managers necessarily predisposed towards them. Covin and Slevin (1988) dened entrepreneurial style in terms of the extent to which managers are inclined to take business-related risks (a risk-taking dimension), favour change and innovation (an innovation dimension) and compete aggressively with other rms (a pro-activeness dimension). On the other hand, a non-entrepreneurial style in Covin and Slevins (1988) terms, is characterized as being risk-averse, non-innovative, passive and reactive. They described their development and use of a measure of entrepreneurial style based on previous theorising and research by Khandwalla (1977) and Miller and Friesen (1982). Their research led to the creation of one of the rst fully validated tools for measuring entrepreneurial orientation. Although many authors have included the dimension of business success in their denition of entrepreneurship, it is important to note that Covin and Slevins validated tool for quantitatively measuring entrepreneurial orientation does not include any variable concerned with assessment of nancial performance. This latter variable is also omitted from by a number of other researchers in presenting their conclusions about the attributes exhibited by entrepreneurs. Hence it seems reasonable to posit that the outcome of entrepreneurship is about creating something which is different to that which currently exists. This permits the proposal that even in small creative arts rms, where the owner/manager is not orientated towards commercial success, it can still be the case that such an enterprise will exhibit entrepreneurial behaviour. This proposition generates the second research null hypothesis; namely: H2. Small creative arts rms are not entrepreneurially orientated. Stewart et al. (1998) suggested that the difference between entrepreneurs and small business owners is one area for further research that may add to a more complete understanding of the entrepreneur. They propose that a pertinent question for entrepreneurship theory and small rm management practice is the following:
What are the behaviours that characterise management in small businesses (differentiated in terms of entrepreneurial orientation) and how do these relate to rm type in terms of nancial performance?

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Gartner (1988) argued that trait-oriented research has not proved wholly adequate in explaining the phenomenon of entrepreneurship and advocated examination of motivation and personal behaviour as an alternative and more promising way forward. Previous research and theorising suggest that a number of managerial behaviours may be associated with an entrepreneurial style. For example, Moss Kanter (1982) argued that there is a strong association between accomplishments in innovation and a participative, collaborative management style. From a conceptual perspective, scholars have previously compared and contrasted the entrepreneurial and administrative (or managerial) domains. For example, Hodgetts and Kuratko (2001) drew a distinction between entrepreneurial style (characterised by creativity, innovation, and risk-taking behaviours) and managerial style (characterised by planning and organisational behaviours) and proposed that the ability to remain entrepreneurial while adopting administrative traits is vital to the ventures successful growth. Hisrich and Peters (1992), building on the work of Stevenson and Sahlman (1986), contrasted entrepreneurial versus managerial approaches in terms of ve key business dimensions-strategic orientation, commitment to opportunity, commitment of resources, control of resources, and management structure. Within this overall context, competence-based frameworks present complementary framework for the analysis of managerial behaviours. Mukhtar (1998) in a study of entrepreneurship suggested that all rms operate inside a global competence space and in each business, specic competencies may be identied. Furthermore, he proposed that entrepreneurial style is an appropriate predictor of performance in terms of high-growth innovative organisations or low-growth (lifestyle or small business owner) types. These views permit the specication of the third research null hypothesis; namely: H3. Entrepreneurial orientation has no impact on the nancial performance of small creative arts rms. Research methodology To implement this study, a survey was mailed to 500 small arts and craft enterprises which appear to have been in business for at least three years within the south west region of the UK. Potential respondents for inclusion in the sample frame were identied by using the Yellow Pages and the membership lists of South West Guilds of Artists. Within the sample frame there were painters, sculptors and producers of items including textiles, jewellery, ceramics, glass, wood and pottery. The questionnaire was mailed to the owner/manager at each of the businesses identied. In the survey, entrepreneurial orientation was measured using the Covin and Slevins (1988) scale with three minor modications: (1) the large rm specic item from the original seven-item scale was dropped; (2) wording was made more generalised to apply to both one person enterprises and a rm with employees; and (3) a ve-point scale was used ranging from very strongly disagree through to very strongly agree. This scale and variants have a long tradition in the strategic management literature (Atuahene-Gima and Ko, 2001) and have consistently demonstrated reliability and validity. Business performance was measured using the technique validated by

Chaston and Mangles (1997) in which the rm is asked to comment on sales growth over the last three years in relation to the ve-point scale of sales declined by more than 10%, sales declined by 1-10%, no change in sales, sales increased by 1-10%, sales increased by more than 10%. As no scale appears to exist in the literature for measuring artistic orientation, the cluster variables from Paige and Littrells study were utilised to develop a six-item scale which asked respondents to comment in relation to their degree of agreement with the following questions: . Financial success is much more important than personal success. . Financial success is much more important than achieving personal independence. . Financial success is much more important than achieving a good balance between my family/personal life and work. . Financial success is much more important than reinforcing the artistic culture within my local community. . Financial success is much more important than expressing my artistic skills. . Financial success is much more important than the personal pleasure of using my artistic skills. Prior to using this new scale in the survey, it was reviewed with 16 different owner/managers in the creative arts industry. All of them understood the nature of the questions and felt the issues raised were important in relation to the decisions that are made by people running a small creative business. Results In order to minimise the inuence of the variance which may exist due to the heterogeneity of data sources, it was decided to remove the inuence of differences which may exist between start-up versus existing businesses; and the size of businesses. Hence returned survey forms from businesses which have traded for less than three years and those with more than ten employees were removed from the sample to be analysed. This action resulted in 107 useable forms, which represents a response rate of 21.4 per cent. In order to make some assessment of the potential inuence of non-response, a variance analysis was undertaken comparing the responses from the rst 57 respondents with the 50 respondents whose forms were received later. There was no indication of a statistically signicant variance between these two groups. This would suggest that non-response is not a cause for major concern in relation to the validity of the conclusions to be drawn from the data acquired. The breakdown of creative activity in relation to the nature of the output of respondents was painters (38 per cent), sculptors (5 per cent), textiles (22 per cent), jewellery (10 per cent), ceramics (6 per cent), glass (4 per cent), wood (3 per cent) and pottery (12 per cent). Although a visual inspection of the data indicated some variation between these different forms of creative endeavour, an analysis of variance was not signicant at p , 0.005. The properties of the entrepreneurship and the artistic scales were investigated by computing internal consistency (Cronbachs alpha) and item total correlations. For

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entrepreneurship, item-total correlations were in the range 0.62 to 0.75, and the internal consistency was 0.86. The item-total correlations for the artistic orientation scale were between 0.56 and 0.68 and internal consistency was 0.74. Both of these parameters (item-total correlations and Cronbachs alpha) are in excess of the minimum values suggested by Nunally (1978). These results are, therefore, taken as evidence of an acceptable level of internal consistency for the two scales utilised in this study. The overall average mean score for all respondents in relation to the six-item artistic orientation scale was 3.02. This result suggests that in small creative industry rms, achieving nancial success is not as important as other issues such as self expression and work/life balance. Further analysis, however, revealed that the average mean score for rms with an individual mean score equal or greater to the overall mean score was 4.15, whereas the overall mean score for rms with an individual mean score lower than 3.02 was 2.16. A t-test value comparing these two subgroups was signicant at p , 0.005 indicating that a statistically signicant difference exists between these sub groups. The implications of this nding is that some respondent rms can be considered to be place a high level of importance on nancial performance, whereas others are less interested in this aspect of their business activities. The overall average mean score for all respondents in relation to the six-item entrepreneurship scale was 3.14 suggesting that small creative industry rms do not exhibit a strong entrepreneurial orientation. Further analysis, however, revealed that the average mean score for rms with an individual mean score equal or greater to the overall mean score was 4.06, whereas the overall mean score for rms with an individual mean score lower than 3.24 was 2.28. A t-test value comparing these two subgroups was signicant at p , 0.005 indicating that a statistically signicant difference exists between these subgroups. The implication of this nding is that some respondent rms can be considered to be entrepreneurial whereas others are non-entrepreneurial. As shown in Figure 1, utilising the sub group mean scores for artistic and entrepreneurial orientation permits the classication of respondent rms into one of four types. These are: (1) creative-conventional; (2) creative-entrepreneurial;

Figure 1. Creative rm orientation

(3) nancial-conventional; and (4) nancial-entrepreneurial. The numbers of each type of rm are provided in Figure 1, accompanied by the respective mean nancial performance score for the group. It is apparent that although the majority of respondents can be considered to place greatest emphasis on creative achievement, it is the more nancially orientated respondents who enjoy the higher than average sales growth from their endeavours. T-tests revealed no statistically signicant difference at the p , 0.005 in performance between creative-conventional and creative-entrepreneurial rms or between the performance of nancial-conventional and nancial-entrepreneurial rms. There, was, however a statistically signicant difference at p , 0.005 between the rms exhibiting a creative orientation versus respondents exhibiting a nancial orientation. Conclusions The overall average mean score for all respondents in relation to the six-item artistic orientation scale at 3.02. This outcome appears to vitiate the H1 hypothesis that the aims of small creative arts rms are primarily driven by a desire to be nancially successful However, the t-test result comparing the two subgroups (creative orientation versus nancial orientation) responses to the six-item artistic orientation scale were statistically signicant at the level of p , 0.005. This latter outcome suggests that there is a difference between small rms in relation to the importance they place on the nancial performance of their business. Hence this suggests a revised opinion in relation to H1 in that it can be concluded that the aims of some small creative arts rms are primarily driven by a desire to be nancially successful. The overall average mean score for all respondents in relation to the six-item entrepreneurship scale was 3.14. This result would appear to provide support for hypothesis H2; namely that small creative arts rms are not entrepreneurially orientated. A t-test value comparing the two subgroups (conventional versus entrepreneurial) was signicant at the level of p , 0.005. Under these circumstances it would seem reasonable to propose a revised conclusion in relation to hypothesis H2 in that some small creative arts rms do exhibit an entrepreneurial orientation. The mean scores shown in Figure 1 and the accompanying statistical analysis indicated there was no statistically signicant difference in the sales growth performance of nancial-conventional rms versus nancial-entrepreneurial rms. The same outcome was also found in relation to creative-conventional versus creative-entrepreneurial businesses. In view of these results it would appear this study provides support for hypothesis H3 that entrepreneurial orientation has no impact on the performance of small creative arts rms. In contrast, however, a statistically signicant difference was apparent between rms exhibiting a creative orientation versus those exhibiting a nancial orientation. Under these circumstances it would appear to be the case that the nature of a creative rms artistic orientation will have impact on sales growth over time. Regional development implications As Western nations seek new opportunities to stimulate the expansion of the knowledge-based sectors of their economies, it is understandable that the creative

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industries have become the subject of increasing interest. In the UK, for example, creative industries now generate an annual Gross Value Added of 60,800 billion, annual exports worth 14.9 billion and provide 1.9 million jobs spread across more than 120,000 businesses (DCMS, 2007). One outcome of Governments now putting national emphasis on up-weighting assistance for this sector of industry is that support agencies responsible for regional economic development are now identifying the creative industry sector as a priority in their operational strategies. Many regional development agencies were originally established to co-ordinate economic regeneration in areas which in the past, have performed poorly in terms of wealth generation and levels of employment. In the UK, many such regional development agencies are now emphasising the opportunities for economic growth which exists by expanding the employment base within the large number of small creative rms already based within their region. Proposed support intervention strategies typically focus on enhancing the commercial or entrepreneurial skills of owner/managers as the basis for creating new employment opportunities. The question which is raised by the results of this research study, however, is whether such ideas have any real potential for success. This observation is made because a key conclusion of this study is the majority of small creative rms are managed by individuals who are more interested in sustaining a lifestyle orientated towards involvement in creative output than being nancially successful. Hence it seems rather unlikely that one could persuade them to dramatically alter their artistic philosophy to the point where they now wish to participate in business growth support programmes leading to the creation of new jobs within their businesses. The other issue is inward investment, which is often a key component of the strategies being implemented regional development agencies. Some of these organisations are already beginning to comment about the wealth generation prospects of attracting large, creative rms to relocate to their area. This philosophy does seem to appear to ignore a key sector characteristic; namely that key wealth generation creative industry sectors such as lm, television and advertising are invariably clustered in and around a major metro-city such as London, Berlin, New York and Los Angeles. Hence it seems extremely unlikely that many of these organisations would be interested in a business relocation package because acceptance of such a proposition would cause them to lose critical day-to-day contact with key customers who will remain based in a major metro-city area. Further research To minimise the inuence of data heterogeneity causing variance problems that might complicate the analysis, this study was restricted to creative micro-enterprises based in the south west UK. Hence to determine whether any of the issues concerning entrepreneurial behaviour and lifestyle business motivation are also applicable to small rms in other business sectors, it would be benecial to undertake further research into these other sectors. There is also a need for future research to cover additional geographic areas in both the UK and other countries. Finally there is the clear need for research about larger creative rms operating in overtly commercial areas such as lm or television to determine whether these organisations exhibit different characteristics in relation to the issues of artistic and entrepreneurial orientation.

A key limitation in this study is the use of a survey tool to generate a sufciently adequate volume of data that can be utilised in the quantitative assessment of respondent opinions. This approach does not generate the richness of understanding that can come from an interview-based, qualitative study of owner/manager attitudes, motivations and opinion. Hence there is a need to complement the ndings of this study by qualitative research designed to probe the reasons behind the majority of small creative rms business philosophy which focuses on creative output, while concurrently placing much less emphasis of the issue of creating a nancially successful business.
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McCauley, A. (1999), Entrepreneurial instant exporters in the Scottish arts and crafts sector, Journal of International Marketing, Vol. 3 No. 1, pp. 67-82. Miller, D. and Friesen, P.H. (1982), Archetypes of strategy formulation, Management Science, Vol. 29, pp. 770-91. Moss Kanter, R. (1982), The middle manager as innovator, Harvard Business Review, Vol. 60 No. 7, pp. 94-106. Mukhtar, S.-Y. (1998), Business characteristics of male and female small and medium enterprises in the UK: implications for gender-based entrepreneurialism and business competence development, British Journal of Management, Vol. 9 No. 1, pp. 41-51. Nunally, J.C. (1978), Psychometric Theory, McGraw-Hill, New York, NY. Olsen, P., Orser, B.J., Hogarth-Scott, P. and Riding, A.L. (2000), Performance, rm size, and management problem solving, Journal of Small Business Management, Vol. 38 No. 4, pp. 42-58. Paige, R.C. and Littrel, M.A. (2002), Craft retailers criteria for success and associated business strategies, Journal of Small Business Management, Vol. 40 No. 4, pp. 314-32. PMSEIC (2003), The Role of Creativity in the Innovation Economy, Australian Engineering & Science Council, Canberra. South West RDA (2006), Regional Economic Strategy for South West England, South West RDA, Exeter. South West RDA (2007), Unlocking the Creative Business Potential of the South West, South West RDA, Exeter. Stevenson, H.H. and Sahlman, W.A. (1986), Importance of entrepreneurship in economic development, in Hisrich, R.D. (Ed.), Entrepreneurship and Venture Capital, Lexington Books, Lexington, MA. Stewart, W.H., Watson, W.E., Garland, J.C. and Garland, J.W. (1998), A proclivity for entrepreneurship: a comparison of entrepreneurs, small business owners and corporate managers, Journal of Business Venturing, Vol. 14 No. 2, pp. 189-214. (The) Scottish Government (2004), A Smart, Successful Scotland: Strategic Direction for the Enterprise Networks and an Enterprise Strategy for Scotland, Scottish Government Publications, Edinburgh. (The) Work Foundation (2007), Staying Ahead: The Economic Performance of UKs Creative Industries, The Work Foundation, London. Tofer, A. (1990), Powershift: Knowledge, Wealth and Violence at the Edge of the 21st Century, Bantam Books, New York, NY. Townroe, P. and Mallalieu, K. (1993), Founding a new business in the countryside, in Curran, J. and Storey, D. (Eds), Small Firms in Urban and Rural Locations, Routledge, London. Tregaer, A. (2003), Market orientation and the craftsperson, European Journal of Marketing, Vol. 37 Nos 11/12, pp. 1621-37. Utsch, A., Rauch, A., Rothfuss, R. and Frese, M. (1999), Who becomes a small scale entrepreneur in a post-socialist environment: on the differences between entrepreneurs and managers in East Germany, Journal of Small Business Management, Vol. 37 No. 3, p. 3142. Welsh Assembly Government (2006), Wales: A Vibrant Economy, Department of Enterprise, Innovation & Networks, Welsh Assembly Government, Cardiff. Wong, C.Y.L., Millar, C.C.J.M. and Choi, C.J. (2006), Singapore in transition: from technology to culture hub, Journal of Knowledge Management, Vol. 10 No. 5, pp. 79-91.

Further reading Kaplan, R. (1987), Entrepreneurship reconsidered: the anti-management bias, Harvard Business Review, Vol. 65 No. 5, pp. 84-9. Mabey, C., Salaman, G. and Storey, J. (1998), Human Resource Management: A Strategic Introduction, Blackwell, Oxford. Corresponding author Ian Chaston can be contacted at: rutichaston@plymouth.ac.uk

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