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Barriers to growth The previous section described a dynamic, creative

On average, Brighton CDIT firms rate the current

and growing cluster. However, Brighton CDIT firms

economic climate the most important barrier

are not immune to risks and difficulties. Several

hindering their growth possibilities, followed by not

factors may affect the firms in the cluster, and

enough revenues to reinvest, excessive workload,

impede or hamper their growth.

too much competition, and lack of visibility. An example of this is the apps market, one online

1. The current economic situation, lack of revenues, resources and profile are the main barriers faced by our respondents.

developer explained: “It seems to be the thing with the App Store is that it’s like 10% how good your game is and 90% marketing, because there’s just a flood of apps and information. Getting noticed

We asked respondents to classify a list of ten barriers

is the key.” (Interview, 11/07/2012). The other

that could potentially hinder their business. Figure 22

kinds of barriers are, on average considered, less

ranks these barriers to growth by their importance.

problematic by the respondents.

The barriers in the orange area are those considered the most important, while those in grey are less

Quite interestingly, copyright infringement is

important or indifferent to the respondents.

considered the least important barrier. However, this is not too surprising if we consider that more than

Figure 22: Barriers to growth ranking 0.0

1.0

2.0

3.0

50% of the firms introduced new material eligible for 4.0

5.0

6.0

7.0

copyright, but only 8% of them identified royalties as an important source of revenue.

The current economic climate

This picture reflects the average perceptions.

Not enough revenues to reinvest in growing the business

However, respondents have been quite specialised

Excessive workload

in their answers, rating only a few barriers as

Too much competition

important at the same time, and showing much

Lack or visibility and profile

less concern for the other ones. Out of ten kinds of

Difficulties in accessing external finance Lack of bargaining power with clients or suppliers Gaps in the skills of our workforce Lack of managerial skills in our business Illegal infringement on our Intellectual Property

barriers, 78% of the firms declared that two barriers or less were important for them, while only 22% faced three barriers or more as important. Moreover, we found that some barriers were Important

Less important/ indifferent

correlated with each other, and we carried out factor analysis28 to reduce the number of barriers to a more

28

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Principal Component Analysis with Promax oblique rotation. IP infringement has been excluded because it was too poorly correlated with the other items.

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