Business Performance of the Creative Economy: Its Driving Factors and Challenges
Awan Setya Dewanta, Edy Suandi Hamid

The purpose of this article is to measure the role of the factors that activate or trigger the creative economy in the business performance of creative industries in 94 cities in Indonesia. The measurement method uses log-linear regression with cross-section data from the results of a creative industry survey in 2016. The research findings show that the activating factor of creative economic business income performance is the strength of the local culture; use of ecommerce in the form of online sales; and the role of urban locations in Java as center for the development of creative economy businesses, while the share of inspiring entrepreneurs is still relatively small. The role of the government has not provided a positive impetus for the development of creative economic ventures. The limitations of the development of the creative economy are that most are micro and small companies, and the use of technology has not been prominent in both the business scale and the length of time the business is. Therefore, the government needs to provide space for stakeholder participation in collaborating and adopting creative economic forces at the local level.

Full Text: PDF     DOI: 10.15640/jibe.v7n2a17