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10 Benefits of the Creative Economy for Business Success

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10 Benefits of the Creative Economy for Business Success

What is the significance of the creative economy? Innovation and creativity are the foundations of the creative economy's rewards. In the end, the benefits of the creative economy are concentrated in the creative industry, which is fueled by inventors and creators.

The advantages of this creative economy are significant not only for entrepreneurs, but also for a country and a nation, as it has the potential to prosper society, a country, and a nation.

In order to create affluence and prosperity, the economic system must be conducive to innovative economic growth.

What is the Definition of the Creative Economy? 

"Ideas are very important economic goods, more important than items emphasized in most economic models," according to economist Paul Romer (1993).

"In a world of physical constraints, it is the discovery of large ideas, as well as millions of tiny ideas, that keeps the economy growing."

"Ideas are instructions for combining finitely ordered physical resources to create more useful ones." Romer also claims that a country's people are poor because they lack access to the ideas that are utilized in national industry to generate economic value.

"In theory, he separates the wave of economic civilization into three waves," according to Alvin Toffler (1980). The first wave is the agricultural economy's wave."

Second, the industrial economy's wave. The third is the information economy's wave. Then comes the fourth wave, which is the creative economy's surge of creative ideas and concepts."

Based on the remark above, business people can make wiser decisions based on the best options and more profitable projections by taking economic action on the development of a growing and successful industry.

However, before initiating any economic action, one should first consider economic principles, as they are the foundation for all economic activity.

3 Examples of Creative Economy

By using the concept of the creative economy, not a few businesses or businesses can be run. In addition, a centralized economic system is very important to run. 

Here are 3 examples of creative economy such as:

1. Design

The first example of creative economy is in the field of design. Design must require creative human resources in this field. It can be started from the design of an interior, graphic design, and product design and others.

2. Fashion

Of course, it is no longer taboo in the fashion world. The fashion world, of course, really needs someone who is also reliable in creating unique and creative ideas for making clothes.

Creativity can be started from how to make clothes, designing accessories that are suitable for use in these clothes. With this, fashion designers are required to be more creative and innovative with unique ideas from others.

3. Advertising

Another example in the field of advertising. Making advertisements is actually not as easy as we imagine, of course in the world of advertising creative ideas are needed even to use the right marketing strategy. So that the ads are made more attractive to consumers.

Creative Economy 

10 Benefits of the Creative Economy for Business Success

Based on a quote from the official website of the Creative Economy Agency, “the creative economy is a concept that places creativity and knowledge as the main assets in driving the economy. “

Then, what is included in the creative economy?

Here are some creative industry sub-sectors:

1. Architecture

The first creative economy sub-sector is architecture. In terms of culture and architectural development is one of the sub-sectors of the creative economy. From a cultural perspective, architecture is able to show the diverse cultural characteristics of the Indonesian nation. From the development side, it is clear that architecture plays a role in planning the development of a city. 

2. Applications and Game Development

Along with the increasing penetration of smartphones in Indonesia, the application and game development industry in the country is also increasing. Several new application and game developers have emerged

On the other hand, this sub-sector is still experiencing several obstacles, such as the lack of investor interest in this sector and the absence of a protection policy that favors the interests of domestic developers.

3. Fashion

Another sub-sector is about fashion. Fashion is a creative industry sub-sector that is running very dynamically. Various fashion trends emerge every year because of the innovation and productivity of designers. Currently, along with the times, fashion always shows a significant increase in competitiveness at the global level.

Characteristics of the Creative Economy

In this digital era, in the business world, business people are required to develop their business more creatively which requires something different from usual. as for the characteristics of the creative economy, namely:

1. The existence of several main elements such as creativity, expertise, and talents that have selling points through offering intellectual creations.

2. The resulting products (goods and services) have a short life cycle, high margins, variety, high competition, and can be imitated.

3. Consists of providing creative products directly to customers and supporting creative value creation in other sectors that are not directly related to customers.

4. It must require good cooperation between various parties who play a role in the creative industry, such as intellectuals, the business world, and the government.

5. Creative economy is based on ideas or ideas.

6. The concept of creative economy that has been developed is relative

7. The development of creative industries is not limited and can be applied to various business fields.

10 Benefits of the Creative Economy for Business Success

Prior to the benefits of the creative economy, the economic system that is still used today by business people in some areas is the traditional economic system, because it is still considered to have advantages for its enthusiasts, but there are certainly drawbacks.

After you understand the meaning of the creative economy from several experts, here are 10 benefits of the creative economy for your business success.

1. Opening Job Opportunities

 The more innovative and creative you do in your business, the more you will certainly continue to create new products to be sold, so that the more products that will be sold and promoted, the more experts you will have. need.

2. New Innovations Develop Fast

With the emergence of new ideas, it will certainly make it easier for people to meet their needs. Because there is no limit for someone to be creative in the business world.

3. You Are More Creative

As the times and with the development of the economy you are required to be more creative which can produce new ideas that are different and unique from the others. With this, of course, it can be easier to compete in the business world with the products you have. With this you are now more creative to meet needs that are not inferior to others.

4. Better Product Quality

Another benefit of the creative economy is that the product quality is getting better. With the benefits of this creative economy, because of product competition in the same market.

5. Economic Growth 

Economic growth is one of the benefits of the creative economy because it can be said that economic growth is always influenced by business growth from various sectors.

Humans carry out creative economic activities to make economic growth increase, with this, many new businesses or businesses have sprung up which because all the links are properly fulfilled, the welfare of the community will automatically increase.

6. Competitive Competition

As the economy continues to grow, it is not surprising that new entrepreneurs will start their business in the economic world. Entrepreneurs compete with each other to create businesses in order to become successful entrepreneurs. So that competitors or competitors are increasing, in other words business or business competition becomes naturally competitive.

7. Reducing the Unemployment Rate

The next benefit of the creative economy is that it can reduce the unemployment rate. It can be said that because the more creative an industry from various sectors, of course the company will need human resources. So because of the benefits of this creative economy, it can reduce the unemployment rate.

8. Broader Market

Then the other benefits of the creative economy are the wider market. The wider market here means that the creative economy has the opportunity to open a wider market because the number of creative ideas increases, the market also increases.

9. Providing Positive Social Impacts

Providing positive social impacts also includes the benefits of the creative economy. With this creative economy, it can have a positive social impact because with these innovative and creative ideas, people help each other and share how to implement these ideas.

10. Creating the Nation's Image and Identity

The last advantage of the creative economy is that it can help to shape the nation's image and identity. Because the more creative and imaginative a nation's people are, the better the nation's image and identity will be.

These are the ten benefits of the creative economy that are most significant for society's well-being. However, in order to reap the economic rewards of this business, entrepreneurs must be able to consider how to handle financial conditions so that they remain steady.

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