Artful economies: How business schools can help arts organisations

We are all aware of the intense and increasing financial challenges the arts sector is facing.  Many organisations dependent on Arts Council England (ACE) funding report worsening deficits, and most face escalating overheads and challenges to existing models of fundraising, touring and performance, making their business models increasingly unsustainable.

Small, independent organisations are struggling with reduced grant availability and high competition, forcing them to rethink their activities, and freelancers are hit particularly hard. These challenges are compounded by deep cuts in local authority funding.

The new Labour government, recognising the sector’s precarious financial situation, has outlined plans to “rescue” the arts from what Arts Minister Chris Bryant described as a “financial black hole”. While it is encouraging the government recognises both the value of arts and culture and the urgent need for support, the recent budget was singularly lacking in good news. Fresh thinking, new approaches to sustainable business models, and the resources and capacity to try new ways of working are badly needed – by arts organisations and funders.

Fresh thinking

As a co-director of the National Centre for Academic and Cultural Exchange (NCACE) – that exists to champion and research collaboration between the arts and higher education (HE) – as well as a trustee of two arts organisations, I ask myself: could closer, more creative collaboration between the two sectors support this fresh thinking and development?  

Cross-sector collaborations have long played a key foundational role in the economic, artistic and research development of many arts and cultural organisations and universities. There are a myriad of different models, some of which are explored in our case studies, published as part of the NCACE Collection. 

These range across teaching and learning, research, projects to develop new theatres, galleries and museums, and many large- and small-scale collaborations focused on social or civic issues. There are also substantial UK Research and Innovation (UKRI) programmes bringing the arts and universities together with a wide range of partners and stakeholders.

Universities play an important role in the arts industry pipeline, as well as the talent pipeline. For example, between 2020 – 2024 the Royal Central School of Speech and Drama supported 202 students to set up their own companies, with training and mentoring. There are many arts and HE collaborations generating a huge range of values, and certainly much to be learnt and celebrated. But, given the urgent situation, how else could the two sectors work together?

Misconceptions about business schools

Professor Jennie Shorley, academic director of the Centre for Enterprise (CfE) at Manchester Metropolitan University, thinks business schools are often overlooked as a resource by arts organisations because of an misplaced belief that there’s an insurmountable divide between businesses only interested in profit and those with social value aims.

But the reality is different. Business schools are unique – often hosting a collection of disciplines from social policy to computing – where social value, responsible employment and creativity are frequent themes. Indeed, small companies that Shorley works with often have a social mission, and deep personal investment in their team. They care about what they produce. They are proudly place-based and their local community is key to the stories they tell about why they are in business – key priorities also for arts and culture organisations.

The CfE is an innovation, leadership and growth knowledge exchange specialist centre. Having supported 2,500 organisations to grow over the last twelve years, and created more than 550 jobs with over £40m of funding, it has a significant footprint in the North West. It has also learnt how organisations work and thrive through these challenging and disruptive times. 

The arts and cultural sector is underrepresented among the businesses that engage with the centre through courses, development opportunities and research, perhaps self-excluding due to misconceptions about what a business school can offer them with their artistic or social rather than profit-driven mission.

In fact, the CfE’s work chimes with Brewer’s Manifesto for a new public social science that includes ‘post-disciplinary’ approaches to producing knowledge, and the importance of strong engagement with the public and policy spheres. For them, interdisciplinarity is crucial – organisations care not for traditional university disciplinary lines, and they work with all areas of academic expertise, from advanced manufacturing to digital arts.

Seeing approaches of other leaders in a safe environment can be the lightbulb moment for leaders of small organisations, who are often isolated in dealing with uncertainty and risk. And while business schools might talk about finance, sales and marketing, every organisation they work with faces challenges with managing people, standing out in a crowded world, and funding – the same core challenges for most arts and cultural organisations.

Treasure trove of resources

Another area where collaboration with a business school could support new ways of thinking and doing is in utilising new technologies. Every company from the huge multinational to a sole trader is currently urgently trying to understand how technology, including AI, could support their business. To engage with this requires resources and the capacity for experimentation, two things in short supply in the arts, particularly in straitened times. 

Professor Neil Maiden of the Centre for Creativity Enabled by AI (CebAI) at Bayes Business School says: “Business models – the structure and processes of organisations that managers use to improve performance – are a major topic of academic research. Arts practitioners are well-placed to think more creatively about these business models and how they could benefit their organisations, given access to these models and relevant case studies.”

Bayes, part of City St George’s University of London, provides various tools to help understand and explore business models. One – the Business Model Zoo – provides accessible information about business models and their basic types. Another – Business Sparks – goes further using dozens of business model types to guide managers to think more creatively about their models and strategies. Both tools are intuitive to use, although you might need to do a bit of translation – substituting customers for audiences, or distribution for touring – and both are free.

Staying with Bayes, its Centre for Charity Effectiveness (CCE) produces a treasure trove of relevant research and resources, notably on governance and in particular on The future charity chair. CCE’s director Alex Skailes emphasises the charity chair as a distinctive, important leadership role that sits at the heart of charity leadership and governance and plays an essential part in shaping how charities respond to opportunities and challenges collaboratively.

The report discusses a range of leadership models, three on the importance of relationships and collaboration: collaboration, shared and ecosystem. Collaboration is integral to inclusive leadership and is required for successful internal and external collaborative efforts. Shared leadership links with the ideas of distributed, collective and collaborative leadership. Finally, the concept of ecosystem leadership refers to where leaders come together in an ecosystem response to complex challenges that organisations cannot solve alone. The report is just one example of the resources available.

Don’t be put off by alien language

UK business schools provide a huge amount of free or low-cost support for SMEs through a variety of accessible programmes designed to support growth and resilience. For example, the London Business School’s Growth Programme offers workshops and mentorship for scaling businesses at subsidised rates, while Aston Business School’s SME Growth Service provides free consultations and resources tailored to SMEs. Similarly, Manchester Metropolitan University’s Centre for Enterprise (CfE) offers practical advice and peer networking through its Sustainable SMEs initiative, empowering businesses to implement sustainable practices.

Callum Morgan, an alumni of the CfE Growth Programme says: “I suddenly had an opportunity to regain some much-needed focus on a business that was overstaffed and underperforming. At the time, my mindset was ‘Grow at all costs’… ‘More staff, more money’. I soon discovered that is not the case… Within weeks I went from being distracted, my head stuck in emails – wondering what I was going to do next – to allowing myself the time to concentrate on what was being put to me. The result? I made some fundamental decisions which have transformed my company completely.”

Arts and cultural organisations and artists are mostly SMEs and sole traders and – though the language of business schools might seem alien or off putting – they face the same challenges and have the same social missions as many organisations from other sectors accessing the same support through programmes such as those mentioned above. Furthermore, you will find your creative insights, approaches and methods will be appreciated and valued.