Chicagomade Chicago Creative Industries Economic Impact Study
Total Page：16
File Type：pdf, Size：1020Kb
CHICAGOMADE CHICAGO CREATIVE INDUSTRY ECONOMIC IMPACT STUDY FULL MATERIALS MAY 23, 2019 Next Street Financial LLC © Copyright 2019 – CONFIDENTIAL 1 TABLE OF CONTENTS Project Overview Executive Summary Creative Industry Definition & Project Parameters Fact-Based Assessment of Chicago’s Creative Economy Quantitative Profile Qualitative Profile Opportunities & Recommendations for WBC Next Street Financial LLC © Copyright 2019 – CONFIDENTIAL 2 PROJECT CONTEXT AND OBJECTIVES > World Business Chicago’s ChicageMade initiative works to support entrepreneurs in the Creative Industry and serve as a connector to the broader ecosystem of Creative Industry resources in the region > As part of this mission, ChicagoMade aims to enhance the profile of Creative Industry in Chicago, given their role as a driver of both innovation and culture to the local and national economy > ChicagoMade has engaged Next Street and Development Strategies to conduct a study that demonstrates the economic impact that the Creative Industry have in Chicago and its economy > Our work includes a fact base assessment, comprised of upfront alignment on the definition for the “Creative Industry”, quantitative and qualitative analyses, best practices research on peer cities, and recommendations on areas of opportunity to better elevate creative entrepreneurs Our project objective is to deliver a fact base assessment of entrepreneurs in the Creative Industry in Chicago, thereby identifying areas of opportunity to better support and articulate the impact of these entrepreneurs The outcomes of this assessment will be used to inform World Business Chicago’s business plan and the broader economic development strategy of the City of Chicago Next Street Financial LLC © Copyright 2019 – CONFIDENTIAL 3 PROJECT TIMELINE Next Street Development Strategies Feb Mar Apr May Phase 1: Fact Finding Alignment & definition Quantitative assessment Profile of Creative Industries & small businesses Assessment of Creative Industries compared to other industries in Chicago Profile of occupations and talent Profile of Creative Industries’ role in neighborhood economies Comparison of Chicago’s creative economy to comparable cities Qualitative assessment Best practices research Phase 2: Synthesis & Recommendations Strategy Profile Development Final recommendations Bi-weekly Check-ins with Project Team Milestone Meetings with Working Group Fact-base Readout (4/1) Recommendations & Synthesis (5/22) Next Street Financial LLC © Copyright 2019 – CONFIDENTIAL 4 PRELIMINARY THINKING FROM MILESTONE MEETING #1 CHICAGOMADE STRATEGIC PLAN RECAP ChicagoMade’s previous Strategic Plan highlighted several strengths, weaknesses, and opportunities for Chicago’s creative economy that we have begun to test through our fact-base assessment ChicagoMade Strategic Plan Preliminary Insights and Learnings Takeaways Chicago has a strong creative entrepreneur > While several resources for creative entrepreneurs exist, there is a general lack of 1 support infrastructure to build from, including awareness of resources and programs, and no single source for identifying available numerous museums, network of innovation programs (to be addressed, to an extent, for small businesses broadly, through spaces, City of Chicago incentives and SBDCs, ChiBizHub) among others > Existing programs vary in quality and relevance to creative entrepreneurs; entrepreneurs cited City’s Boombox pop-ups and community-based initiatives (Stony Island Arts Bank, Chicago Urban Art Retreat) as being key resources, whereas others, like City grant programs, are seen as ineffective at benefiting those they aim to support Creative Industry contributes significant > Alignment from entrepreneurs and other stakeholders that industry impact should 2 economic impact to Chicago’s economy and capture not only quantitative impact, but also cultural influence on neighborhood impart unique cultural identities to level; community development, political activism, and neighborhood pride were cited as neighborhoods across the city key motivators for engaging in Creative Industry 3 Unequal access to business assistance amongst > Unequal access to resources and customers is rooted in systemic racism in South Side creative entrepreneurs, and opportunity to and West Side neighborhoods; future initiatives should be community-driven and elevate creativity of neighborhoods locally and focus on alleviating risk and financial burden, and driving foot traffic to businesses in globally underserved neighborhoods 4 Incubator cited as potential solution for > Incubator could fill a significant gap in “back-office” / business needs – both through providing creative entrepreneurs with a single direct training to entrepreneurs and connecting creatives with existing service location for accessing and learning about providers; these services would alleviate commonly cited bandwidth issues and enable relevant resources entrepreneurs to focus more attention on creative aspects of their business > In addition to business training and resources, an incubator or similar model could serve as hub for networking, mentor relationships, partnerships, and career exposure programs to further cultivate Chicago’s collaborative, creative entrepreneur landscape > Continued research on needs of creative entrepreneurs is underway, and we anticipate solutions set could be broader than incubator model Next Street Financial LLC © Copyright 2019 – CONFIDENTIAL 5 TABLE OF CONTENTS Project Overview Executive Summary Creative Industry Definition & Project Parameters Fact-Based Assessment of Chicago’s Creative Economy Quantitative Profile Qualitative Profile Opportunities & Recommendations for WBC Next Street Financial LLC © Copyright 2019 – CONFIDENTIAL 6 EXECUTIVE SUMMARY: CHICAGO’S CREATIVE ECONOMY Chicago’s Creative Economy is large, integral to the economic health of the city, and can be defined through six core industry clusters Chicago’s Creative Economy Employs The Creative Industry’s More than 250,000 Employees in More Economic Impact2 than 37,000 Businesses1 Creative Economy establishments Total Creative Economy employees by number of employees 253,511 $144B of total direct and $34B in total direct 24,496 indirect economic output Non-Employers and indirect wages is equates to nearly four equivalent to 11% of Non-Employer Micro (1-9) Businesses times Healthcare and personal income in Small (10-49) Employees of 229,016 24,496 Social Assistance Cook County Businesses revenues in Cook County ($300B) 10,276 ($40B in 2012) 3,043 The Industry Clusters of Chicago’s Creative Economy Creative Goods and $ Design and Planning 660,000 direct and Fashion Design and Services indirect jobs supported is $2B in state tax Manufacturing equivalent to over 30% revenue generated is of private sector equivalent to 5% of Fine Arts and Creative Goods and employment in Cook state tax revenue in Performing Arts Fashion Wholesale County (2.2M) 2016 Entertainment, Digital Creative Culinary Media, and Creative Businesses Professional Services 1. US Census, County Business Patterns, Cook County (2012, 2016); Nonemployer Statistics (2012, 2016); 2. U.S. Census County Business Patterns; Bureau of Economic Analysis; IL Dept. of Employment Security; IL Dept. of Revenue Next Street Financial LLC © Copyright 2019 – CONFIDENTIAL 7 EXECUTIVE SUMMARY: WHO CHICAGO CREATIVES ARE Chicago’s Creative Economy is not demographically representative of Chicago as a whole; women and People of Color are underrepresented and face barriers to inclusion Business Ownership in Chicago’s Creative Economy1 “The people making decisions about arts funding Ownership by race for businesses need to look like artists. They need to look like the with paid employees city and the people who live here.” [arts center director] White Black 87% Asian “The food industry is so male dominated. People write me 2% Some Other Race 1% 19% off, don’t necessarily respect me as a business owner or chef. Have to fight for respect.” Ownership by ethnicity for businesses with paid employees [catering company, formerly food truck] 95% Not Hispanic or Latinx “We had a meeting with the mayor: 12 organizations were Hispanic or Latinx 5% represented. I was the only Latino, and the only one whose organization wasn’t based in the Loop.” Ownership by gender for [museum director] businesses with paid employees Female “When black people aren’t a part of the conversation about what’s going to happen, it doesn’t go well. People avoid 62% Male inclusion because it means working outside of our ego.” Equal Male- 25% [designer and architect] 13% Female Ownership 1. Survey of Business Owners, Illinois, 2012 Next Street Financial LLC © Copyright 2019 – CONFIDENTIAL 8 EXECUTIVE SUMMARY: HOW CHICAGO COMPARES Chicago’s Creative Industry employs nearly 10% of all Chicagoans, but peer cities offer helpful examples in how to grow Chicago’s Creative Economy and make it a more inclusive and supportive industry for all Share of Creative Industry Employment1 to Total Employment by Primary County, 2016 Det Hou Phil USA Chi Atl NY LA 5% 8.1% 9.5% 20% Learnings from four peer cities (New York, Los Angeles, Philadelphia, and Detroit) Support offerings for artists in the Creative Economy should be flexible and adaptable to meet artists’ 1 needs Robust business support services for the Creative Industry can elevate artists within a city’s economy, 2 creating downstream economic and cultural impact Organizations providing support to creative entrepreneurs should leverage the expertise of partners to 3 extend their