Advances in Science

Four universities in the country, in conjunction with the Organization of Ibero-American States OEI, for its acronym in Spanish, have an important mission: To show Colombia what the model of management of the Creative or Orange Economy should be. The essence of such an economy is constituted by culture, new media, and content software, among other fields, and which is expected to make a great contribution to the nation's economic growth as contemplated in the Plan Nacional de Desarrollo, PND (National Development Plan).

Universidad del Rosario is part of this important group. Since 2019, it has worked with the OEI, the Vice Ministry for the Orange Economy, the Ministry of Culture, Escuela de Administración de Negocios (EAN), the Cultural Economy group of Universidad Nacional de Manizales, and the School of Arts of Universidad de Antioquia in a project called Creative Economy.

“The OEI invited us to help them define the management model for these types of industries, outline how we are going to start them up, and chalk out a plan on how to mobilize small- and medium-sized entrepreneurs to put their proposal into practice. Universidad Nacional and Universidad de Antioquia are identifying the cultural contribution of cities and regions, and as for the EAN and us, we work on the functional, more business element,” says Professor Hugo Rivera, School of Business Administration, Universidad del Rosario. This task has to be conducted in an articulated manner with what the National Government has been doing since 2018, such that the 5 percent growth goal can be achieved in 2022 for these types of industries.

"The theme of creativity and the creation of business models associated with cultural industries, understood as the construction of a new thought and based on ideas and work, is a winning bet. If our economies are to grow, they must do with support from these types of creative industries,” assures Professor Rivera.

First steps

To provide all the elements that the country requires in this matter, one of the first goals of this research study was to establish the different aspects that have given rise to, as well as making it possible to include within the Colombian economy, the Orange Economy, which, today, is set forth under Law No. 1834 of 2017, known as the Orange Law.

In that sense, it included an inquiry to know what implies the concept of Orange Economy and its relationship with the “Seven Is” (Information, Inspiration, Inclusion, Industry, Integration, Infrastructure, and Institutions), which are the strategies that will allow adequate implementation of the Law.

Likewise, the ‘Seven Is’ were related to the topics that can adapt more to what is sought in the Orange Economy as codified by researchers: Culture, resources, innovation, and creativity, skills, and education (see chart).

With all this practice, this research study will propose a management model that allows entrepreneurs to have better vision of their business as well as awareness of the different steps they have to take to be successful.

"A management model is like a roadmap, a precise guide that tells the entrepreneur how the planning phase, start-up, and follow-up will be like so that the industry creates value. An investigation of what was done in other countries has already been made to identify which elements of those models can be applied in the Colombian case; if we adopt a management model more focused on the cultural or functional aspect. We are in the phase of prior identification,” explains Professor Rivera.

With “the entrepreneur path,” as the researcher calls it, entrepreneurs will also be able to identify to which orange activity they belong, according to their classification and the ecosystem of value to which they will contribute. The management model will depend on whether it is an entrepreneurship or whether the company is already consolidated. The previous model proposed by the research groups in this first phase of the project allows identification of the concepts and the most relevant indicators of the Orange Economy in a matrix of 13 items, which considers the three main activities: Art and heritage; cultural industries; and functional creations, new media, and content software.

Each entrepreneurship will establish its business model, which is its value proposal. Whether it has consumers and available resources; whether it generates monetary value, in such a way as to generate an impact on GDP, employment, or in the balance of trade; or whether, on the contrary, it generates a non-monetary value that contributes to the development of skills, creativity, or innovation.

The model will also determine whether entrepreneurship generates a use-value, which allows bestowing an educational value; or a non-use-value, which can provide historical value, a contribution to internationalization, or an option value.

For all of this to be consolidated, it has to be identified whether it will be created or whether there exists an entrepreneurship or a more formal organization; that is to say, whether it is or will be an informal, non-profit, community emerging business, or a company.

Likewise, the offer programs and instruments that facilitate access to resources have to be determined so that entrepreneurs can increase the value added by their proposals.

With all this, it is expected that the country will have a better idea on how to get the most out of the Orange Economy because, as Professor Rivera says, Colombia is just in an incipient phase of understanding, to determine the industries that would be in this new scheme.