Unpacking Radical Economic

Transformation in the Arts,

Culture and Heritage Sectors

FOUNDATION OF

DAC PROGRAMMES

National Development

Plan

1. Inclusive social and

economic

development

2. Sustainable

investment and

growth

3. Decent jobs and

sustainable

livelihoods

5

4. A capable

developmental

state

5. Expanding

opportunities

MTSF 2014 - 2019

Outcome 14

Nation Building and Social

Cohesion

REALITY Point

8

It’s ugly out there…

9

Economy under pressure

(Image: Shutterstock)

ECONOMIC BALANCE?

11

Artists Pains

1. Access to

funding 2. No access to Information

4. Corruption, bribery & nepotism 3. Lack of business

skills

5. No access to tools of

production 13

Result

14

Full Potential

Private Sector

But difficult to get in!!!!

Point

What is the DAC response going to be?

19

PHAKISA Programme

Clear Direction?

MONEY is not the main problem

Value for Money?

Are We Just

Paper Pushers?

Internal entanglements ?

Driving Derailment!

Point

CRITICAL SOLUTION?

31

32

Opportunity Seekers Opportunity Providers

33

RADICAL ECONOMIC TRANSFORMATION

Point

So

cia

l a

nd

Ec

on

om

ic

Ad

vo

ca

tes

are

Ne

ed

ed

35

Provide Tools of Production

Weak

Bridges

From…

37

Built

with

suspect

Ropes 38

To...

39

1) Mzansi Golden Economy

Cultural Ecosystem

Entrepreneurs Risk Capital

Nation Building &

Social Cohesion Profit

Motivation

24/7 Utilities Predictable

Economic System

Infrastructure Stable

Legal System Universities

Risk Taking Culture Accelerators,

Incubators

Creative Art

Academies

Free flow of

People/Info

Customer & Audience

Development Management

Tools

Agile

Development

Business Model

Design

Investment

Approach…

42

(VC)3 Model

43

Value Creation

(VC)3 = Value Capture

Value Circulation

44

Market size

R ??? million total spent by whole of Government

on Arts, Culture and Heritage goods

and services

R2 billion

Assuming that the total measured

procurement spend on ACH

R2 billion

R??? SMMES

R ???

Black owned Companies & BWOC

R ??

Established Companies & NGO

R ???

Others???

Disruptive Innovations: A driver of leadership failure

and the source of new growth opportunities

Pe

rfo

rma

nce

Time

Disruptive

innovations

Incumbents nearly always

win

Entrants nearly always win

Copyright Clayton M. Christensen

• Information

• Training

• Experience

• Networks

• Information

• Credibility & Visibility

• Workspace

• Information

• Markets

• Finance

• Partners

New Approach

50

Artist Development

Technical

Readiness Level

Problem/Solution

Basic Registrations

and compliance

Product/Market Fit

Validate

Revenue Streams

Validate

Resources and

Costs

Metrics that Matter

Investment

Readiness Level

Musical Literacy

Sound

Development

Genre Exploration

Audience

Identification

Musical Leadership

Growing Audiences

Master

(Antifragile)

Professional

(Robust)

Apprentice

(Fragile)

Market Development

Mzansi Golden Market

Scarcity

Abundance

Scarcity Abundance

Scarcity Abundance

Audience Development

Management System

Engagement in Activities

Information

Sharing

Training Needs

(Art

Appreciation)

Ecosystem

Membership

Using Mobile Technology

(Cultural Observatory)

65

Tax Incentives

Cash Flows critical

Creative Arts Incubators

Incubator Coverage

70

MGE Venture Capital

Fund

Artist Journey

Entrepreneurial Journey

2. DAC Entities

Business Model Innovation

3. AFRICA Month

Key Sectors 1st Week 2nd Week 3rd Week 4th Week Bonus

PERFORMING ARTS (FILM,

MUSIC, THEATRE, DANCE)

FASHION

DIALOGUES

CULINARY

HERITAGE

BUSINESS CONFERENCES

Genre Focus

4. Liberation

Heritage Route

LIBERATION

HERITAGE

ROUTE

5. Unite 2.0

Clubs in schools

6. Use of Official

Languages Act

implementation

7. Libraries

.

to

MINDSET

Keep

going

back

to

first

principles

Why?

Why?

Why? Why?

Why?

Why?

Why?

Why?

Why?

Why?

(Image: Shutterstock)

BIG Problems

=

BIG Opportunities

Pick the

RIGHT

FIGHT

don’t re-invent the wheel

think outside-of-the box

Reality Check…

93

Facing a mammoth Challenge...

94

Out of our DEPTH?

95

No man is an ISLAND

COLLABORATIVE APPROACH

Measure the quality of

current and potential

programmes

Success measures

Opportunities generated

Social

Cohesion

Impact

Value for

Money

Lean

Processes

Internally in DAC

Success measures

Meaningful Opportunities

“Feel Good”

Factor

Financing

provided or

leveraged

Cultural

Entrepreneurs

Impacted

Stakeholders

Short -term ROI R1 R3

Medium-term ROI

????? R1

Social & Financial Return On Investment

SIYABONGA!