FEATURE
PAPER
On The
Edge: Stocking A Business Toolbox for Artitts
The
following paper was presented at the 2008 United States
Association for Small Business and Entrepreneurship (USASBE).
- Marilyn Besich, Edrienne L. Kittredge, Montana Arts Council
Abstract
Contrary to popular myth, artists can learn about business.
With its students increasing their income by 152%, the Creative
Arts Enterprise program at Montana State University-Great Falls
has demonstrated how to develop a successful curriculum that
stocks the toolbox of skills artists need to be sustainable
entrepreneurs. Several recommendations have emerged for building
a successful entrepreneurship program for artists: 1) artists
want a skillset, not a degree. 2) The institution needs to
fully understand the ramifications of the needs of the students.
3) Student interests need to be heeded because nontraditional
students learn what they are ready to engage.
Introduction
The
key question isn’t ‘What fosters creativity?’ But
it is why in God’s name isn’t everyone creative?...I
think therefore a good question might be not why do people
create? But why do people not create or innovate? We
have got to abandon that sense of amazement in the face
of creativity, as if it were a miracle if anybody created
anything. -Abraham
Maslow
In
the past, the arts rarely were linked with economy. Anthropologists
have related the emergence
of the arts with the development of a surplus economy and a society’s
ability to have time and resources to look beyond the struggle
for existence. Art and business have also coincided when art
has been used as a way to showcase wealth, as occurred in Renaissance
Italy or in corporate contemporary America. Until fairly recently,
economic developers have seen the value of the arts as
a reflection of a thriving society, a nice “icing on the
cake” of economic health.
To speak of art and business in the same breath has been
considered paradoxical. Artists were viewed as right-brained,
and business people were left-brained, with never the
two meeting. To expect an artist to consider balance
sheets or marketing strategies was seen as demeaning
the art, while calling an accountant creative was basically
labeling him a criminal.
The
creative sector has come to include “the enterprises
and people involved in producing and distributing goods
and services in which the aesthetic, intellectual and emotional
engagement of the consumer gives the product value in the marketplace” (Rosenfeld,
2007, p. 8). This category includes, writers, painters,
photographers, sculptors, woodworkers, architects, composers,
performers, fibre artists. Besides the individual artist,
this sector also
includes the organizations that promote arts education, the
industries with design at their core, and the businesses,
like studios, shops, and advertising firms, that depend on
the individual
artist for survival.
Increasingly,
researchers are finding that the creative sector is more
than a postscript. Several researchers
and organizations have gathered rather compelling data that
defines how the creative sector substantially contributes
to healthy economic growth. The results of that research
also illustrate how the creative sector holds the potential
to be an even more important player. Richard Florida,
who posits that creative individuals tend to gather in places
conducive to artistic activities, sees creativity and entrepreneurship
becoming 21st century core proficiencies regardless of the
career
path that a student chooses to take (Florida, 2002).
Other studies
show that the national economy received a direct impact of
between $12.3 and $14 billion in sales
from fine handcraft. These figures are half the size of
airline ticket sales and about the same as the impact of
the funeral
industry or the oil industry (Dave and Evans, 2001). Such
numbers provide real meaning to the statement, “The
arts mean business.” (Americans for the Arts,
2002). This impact is felt in urban and rural areas,
with arts-centered
activities becoming a growth stimulus in moribund
rural landscapes, offsetting loses in agriculture
while enhancing the quality of life and encouraging
people to stay (Markusen, 2006).
Read
the Entire Paper...
TIP
OF THE WEEK
Franchising
Options and the Structure of the Franchising Industry
Franchising Options
The potential value of any franchising arrangement is defined
by the rights contained in a legal agreement known as the franchise
contract; the rights it conveys are called the franchise. The
extent and importance of these rights may be quite varied.
When the main benefit the franchisee receives is the privilege
of using a widely recognized product name, the arrangement
between the franchisor (supplier) and the franchisee (buyer)
is called product and trade name franchising. Automobile tire
outlets carrying the Goodyear brand name and soft drink bottlers
distributing Dr Pepper are both engaged I this type of franchising.
Alternatively, entrepreneurs who receive an entire marketing
and management system are participating in a broader type
of arrangement referred to as business format
franchising. Fast-food outlets (e.g., Burger King), hotels and motels (e.g.,
Radisson), and business services (e.g., Mail Boxes Etc.) typically engage in
this type of franchising. The volume of sales and the number of franchise units
associated with business format franchising have increased steadily over the
years.
A master licensee is a firm or individual having a continuing
contractual relationship with a franchisor to sell its franchises.
This independent company or businessperson
is a type of middleman or sales agent. Master licensees are responsible for finding
new franchisees within a specified territory. Sometimes, they even provide support
services such as training and warehousing, which are more traditionally provided
by the franchisor. Also gaining widespread usage is multiple-unit ownership,in
which a single franchisee owns more than one unit of the franchised business.
Some of these franchisees are area developers—individuals or firms that
obtain the legal right to open several outlets in a given area.
Piggyback franchising refers to the operation
of a retail franchise within the physical facilities of a
host store. Examples
of piggyback franchising include
a cookie franchise doing business inside an Arby’s fast0food outlet and
a Krispy Kreme donut franchise operating within a Wal-Mart store. A new trend
in piggyback franchising is locating walk-in health clinic in Wal-Marts, Target
stores, drugstores, and other retail outlets. This form of franchising benefits
both parties. The host store is able to add a new product line, and the franchisee
obtains a location near prospective customers.
The Structure of the Franchising Industry
Franchisors and franchisees are the two main parties in the
franchise industry. A franchisor may be a manufacturer or another
channel member (a wholesaler or
retailer) that has an attractive business concept worthy of duplication. As shown
in Exhibit 4-3, a franchise can be sold by the4 franchisor directly in individual
franchisees or marketed through master licensees or area developers. Most franchisors
also own one or more outlets that are not franchised. These outlets are referred
to as company-owned stores.
In addition to these parties, the franchising industry contains
other important groups called facilitators. Facilitators
include industry associations, governmental
agencies, and private businesses.
The international
Franchise Association (http://www.franchise.org), or IFA,
is an industry association that serves franchise
members by attempting to safeguard
and enhance the business and regulatory environment of the industry. It has over
30,000 members—franchisors, franchisees, and suppliers—that operate
in more than 100 countries. Nevertheless, the IFA is highly selective and not
all companies applying for membership are accepted. Referring to itself as “The
Voice of Franchising,” the IFA sponsors legal and government affairs conferences,
franchise management workshops, seminars on franchisor/franchisee relations,
and trade shows. The IFA also champions the causes of minority business groups.
For example, the Women’s Franchise Committee (WFC), formed in 1996, provides
leadership conferences, mentoring programs, a network of professionals, and other
services for women franchisees.
Numerous federal and state agencies are involved in the franchise
industry. Agencies such as the Federal Trade Commission
(http://www.ftc.gov), or FTC, provide information
on franchise opportunities and enforce franchising laws and regulations. Presale
franchise disclosure practices are subject to special scrutiny by these agencies.
A third category of facilitators includes private businesses
providing franchise information and consulting services
to franchisors and franchisees. For example,
Franchise Connections (http://www.franchiseconnections.com) and The Franchise
Company (http://www.franchiseconnections.com) are two businesses that assist
with franchising evaluation and offer development services.
Evaluating Franchise Opportunities
After making a decision to pursue a franchising opportunity,
the prospective franchisee must identify a franchise candidate
and investigate it completely.
As we discuss the investigation process, we will continue to use examples
involving Wing Zone, a takeout/delivery restaurant franchise featuring
buffalo wings.
Small Business Management,
Fourteenth Edition
Copyright 2008 Thomson South-Western
Pgs. 101-103 Justin G. Longenecker, Carlos W. Moore, J.
William Petty, Leslie E. Palich
|
ANNOUNCEMENTS
2008
SBI Registration Form
The Small Business
Institute will be hosting their Annual International Conference
at the Handerly Hotel in San Diego, California. Click
here for more information and hotel arrangements.
National
Urban Inititiatives Competition
Clark University
is hosting the National Urban Inititiatives Competition.
They are seeking proposals that have practicality, creativity,
and are well rooted in theory. Proposals should trnslate
from theor to model or vice versa. Furthermore, it should
be feasible to enact into legislation.
An award of $20,000 will be given to each winner of the three categories:
1. Affordable and
sustainable housing.
2. Neighborhood based
economic development.
3. Financial services
to low income communities.
All applicants must
be from a institution of higher education and must team with
one or more of a local government entity and/or non-profit
organization.
Submission of Step
1 proposals are due January 25, 2008.
For more information
please click
here.
SBI
Journal - Request for Papers
The Small Business
Institue is now requesting papers for the Small Business
Institute Journal. If you are interested in submitting a
paper, please let us know. The first issue is to be printed
April 2008. For more information please click
here or email us at sbij@uca.edu.
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CONFERENCES
SERA
|
| Who: |
Social Science Research Center and
the Southern Rural Development Center |
| What: |
Southern
Extension and Research Activity
|
| Where: |
Atlanta,
Georgia |
| When: |
Feb.
11-12, 2008 |
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AMA
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| Who: |
AMA Educators |
| What: |
2008 Winter Marketing Educators'
Conference
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| Where: |
University of Texas-Austin |
| When: |
February 15, 2008 |
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EDRP
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| Who: |
The
University of Arizona Economic Development Research
Program
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| What: |
40th
Annual Arzonia Economic Development Course |
| Where: |
The
University of Arizona, Tucson |
| When: |
January
20-24 |
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WUF
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| Who: |
World
Universities Forum
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| What: |
2008
World Universities Forum |
| Where: |
Davos,
Switzerland |
| When: |
Jan
31-Feb 2, 2008 |
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ICSB
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| Who: |
International
Council for Small Business
|
| What: |
2008
International Council for Small Business (ICSB)
World Conference |
| Where: |
Halifax, Nova Scotia, Canada |
| When: |
June
22- 25, 2008 |
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CALLS FOR PAPERS
KGCM
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| Who: |
Knowledge
Generation, Communication and Management
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The3rd International Conference
on Knowledge Generation, Communication and Management
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Orlando, Florida |
| When: |
June 29th to July 2nd, 2008 |
Submission
Deadline:
February 7th, 2008
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SOBIE
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| Who: |
Society
of Business, Indutry, and Economics
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| What: |
Annual
Academic Conference of the Society of Business,
Industry, and Economics
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| Where: |
Destin,
Florida |
| When: |
April
15-18, 2008 |
Submission
Deadline:
March 1, 2008
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HICB
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| Who: |
College
of Business Administration at the University of
Hawaii
|
| What: |
8th Annual Hawaii International
Conference
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| Where: |
Honolulu Hawaii, USA |
| When: |
May 22 - 25, 2008 |
Submission
Deadline:
February 18, 2008
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