Figure 7. Cultural services as a share of subnational and national government spending, 2019 Subnational %
National
7 6 5 4 3 2 1 0
Note: Subnational refers to the combination of state and local government spending. Data for Costa Rica in 2011 refers to 2012, and data for Costa Rica in 2019 refers to 2017. Source: OECD (2022), National Accounts Statistics - Government expenditure by function (COFOG), http://dx.doi.org/10.1787/na-data-en.
CCS generate largely intangible capital that is often
•
Recognise the diversity of funding needs within the
viewed as high risk by investors. This incapacity to
sector. Since CCS are largely composed of micro
provide (tangible) collateral to guarantee the risk of
and small companies, freelancers, and non-for-
loans, as well as the project-based nature of work,
profits, adequate support tools should recognise the
has important implications for CCS firms’ ability to
importance and the specific needs of these creative
successfully apply for finance through formal channels.
communities.
Moreover, while CCS do not necessarily underperform in terms of profit or financial soundness when compared
•
Consider assuming the risk of financing uncertain
to other sectors, they are often viewed as high risk by
phases in the value chain, mainly associated with
equity financers. Given the difficulties that many CCS
the creation phase. This could either be through
businesses face in accessing equity and debt finance,
direct financing or through de-risking strategies
governments are increasingly stepping in to provide debt
such as loan guarantees.
and equity finance or finance guarantees. • Policies to reinforce financing of CCS at national and
Use public funding to leverage private involvement in areas of social impact.
regional levels include: • •
•
Ease access to crowdfunding by providing a suitable,
Consider culture as an investment, not a cost in
fully functional technological and regulatory
recognition of the numerous economic and social
environment as well as by increasing the financial
benefits CCS bring.
literacy of entrepreneurs and citizens.
Ensure a stable regulatory framework to facilitate the increasing participation of new actors in the support and finance of CCS. OECD. 11
