According to a new report from think-tank Demos, “the lazy assumption that the creative industries are inherently risky is harming Britain’s path to growth.” They found that one third of investors perceived the creative industries as being too risky to merit investment, for two reasons. There’s a popular conception that the ‘creative genius’ is obsessed by his or her art but somehow impractical, and certainly unable to run a business. Investors also think past creative success does not predict the same in the future, making it difficult to judge whether a particular business is a safe investment.

These beliefs may be compelling but they’re wrong. After much sifting of data, Demos discovered that an average of 49.7% of creative businesses were still trading after five years, compared to 46.9% of all other businesses. The creative sector has a higher business survival rate than the financial intermediation, manufacturing and mining sectors. Unsurprisingly, the notoriously risky hospitality sector proved to be the least successful, with a survival rate of just 34.7%.  As a whole, the creative sector has the fourth highest survival outcome of any sector in the UK.

Far from being risky, Demos also found that creative businesses are inherently flexible, allowing them to weather tough times. For example, an advertising firm can minimize its expenditures in a way that a restaurant can’t – Demos mentioned that it’s possible to run a company from a cupboard. Creative businesses are uniquely innovative and have taken advantage of the Internet to stay relevant in a digital world.

Last year, David Cameron announced the Coalition was “determined” to support “all the knowledge-based businesses including the creative industries.” There’s no doubt that nurturing native talent will be important to our future growth.

Last week we launched our innovate framework to provide early stage businesses in Creative Services with a free, practical process to support their business success.  With the opportunities that being a member of the Exchange also provides these businesses in terms of access to projects from brands across the world, blur Group is at the forefront of showcasing this industry. And by making it easier for brands to use these new creative agencies rather than sticking to the oligarchy of the big networks, we’re encouraging other businesses to invest in their growth.