Creative and Cultural Industries and Democracy

The mission of the Center for International Private Enterprise (CIPE) is to support democracy by strengthening private enterprise. CIPE works with business, political and civil society leaders to build democratic institutions that create an enabling environment for entrepreneurship and the private sector to flourish.

CIPE is an affiliate of the U.S. Chamber of Commerce and one of the four main institutes of the National Endowment for Democracy (NED). It was created in 1985 by the U.S. Government on the principle that economic freedom and political freedom are closely related: a thriving private sector needs a strong democracy to function, and vice versa.

CIPE has established partnerships with business associations, think tanks and other private sector organizations from over 60 countries around the world. Its programs promote a rules-based system that emphasizes the principles of democratic governance, anti-corruption, business promotion and open markets. In this way, CIPE and its global network of partners create knowledge and develop practical tools to drive local change. Tijuana Innovadora is a social innovation platform for the city of Tijuana, whose programs transform the citizens and, as a consequence, the region, strengthening an engaged and rooted society.

Tijuana is a metropolis with more than 1.5 million inhabitants, neighboring the fifth largest economy in the world, the state of California, with whom it shares the busiest land border in the world. Its geographical location has made it one of the cities with the highest economic and demographic growth in Mexico, receiving thousands of migrants. This growth has generated enormous human capital and great challenges of integration and development.

In 2010 we undertook a major event that shook the city. It brought together organizations, social activists and citizens to work together for a better city, especially our youth. Organically converted into a movement, we are currently working on 10 permanent programs: Sinfónica Juvenil, Paseo de la Fama, Arte en la Industria, Líderes, Innovamoda, DiseñoLab, FabLab, Tijuana Verde, Casa de la Ideas and Comuna Creativa, who convenes this effort to work in particular democracy and creative economy.

Tijuana Innovadora is a platform that strengthens citizenship, promotes the positive aspects of the city and creates a sense of belonging that integrates society in a collective and binational effort in alliance and collaboration with other actors (community, governments and businesses) to create active, committed, conscious, congruent and creative communities.

Creacción

México:

Promoting a Democratic Culture, Addressing Citizen Insecurity, Fostering Youth Entrepreneurship and Citizen Participation.

Derechos 2022 Tijuana Innovadora. https://tijuanainnovadora.org/creaccion/

Acknowledgments

The Center for International Private Enterprise, CIPE, strengthens democracy around the world through private enterprise and market reforms. Since its foundation in 1983, CIPE has worked with business leaders, politicians and journalists to build the civic institutions vital to a democratic society. Among the main areas of work is the strengthening of entrepreneurial ecosystems and the promotion of public policies for economic development with particular emphasis on women and youth participation.

In Latin America, CIPE collaborates with local civic and business organizations in the development of projects that promote citizen participation. As an example, in the last 5 years they have promoted a creative industries program in Guatemala, strengthening the creation of companies and their growth. In Mexico, they have several programs as well, like in Tijuana where a collaboration agreement was established in 2021 by Tijuana Innovadora to promote creative industries and the participation of young people.

John Zemko Regional Director for Latin America and the Caribbean Center for International Private Enterprise

To search and find the Cultural and Creative Industries, in the midst of the activity of a dynamic and bustling city such as Tijuana, is not easy. It has required effort, loving dedication, and scientific thoroughness that comes finally to present a well-done work before CIPE, our sponsor, and society in general, which will find in this study a practical and effective instrument of the treasure that represents creativity.

To all the people who participated in this effort, we are pleased to present to the community the result of many months of work, and at the same time, we thank you for the trust and responsibility you have given us.

José Galicot Founding President Tijuana Innovadora

Preface

Why promote citizenship and strengthen

The richness of the cultures found - and not found -, in this region has been the subject of media coverage since the border was founded. Hybrid and dynamic, Tijuana's vocations have been sensitive and audacious thanks to -among other characteristics-, its geographic opportunity. This circumstantial territorial event has generated challenges, services, opportunities, products and strengths that could not be found in any other latitude. And this includes the Creative and Cultural Industry, CCI by its acronym.

Our CCI was a collective initiative since its origins. With Technology and Culture as a binomial, Tijuana Innovadora 2010 brought to the discussion table the urgency of exploring the potential of the current digital movement and its links with the economy of culture and art.

Over the last 12 years, in the sphere of Tijuana Innovadora's Comuna Creativa we have enriched these links, promoting the economic potential of the cultural and creative industry and fostering the democratic participation of the community, youth, collectives and creative agents by promoting meeting spaces, committed alliances and entrepreneurial exercises.

One of these efforts is this one you hold in your hands: Creacción, whose name is composed of the words crear (to create), and acción (action). A dream come true that we now present thanks to the support of the Center for International Private Enterprise, CIPE; a committed Council -Advisory Collective- of specialized characters; the rigorous academy of Centro de Enseñanza Técnica y Superior, CETYS Universidad; the experience of Macedo Cham Consultores, the creative calm in the design and printing of Médicis Comunicación, as well as the dissemination campaign of TIPS Marketing and all the people of the creative ecosystem who gave us their time to share their experience in order to elaborate this work: Mexico: Promoting a Democratic Culture by Addressing Citizen Insecurity, Fostering Youth Entrepreneurship and Citizen Participation.

The foreword written by economist Ernesto Piedras situates the value of this material in a national and international context. In Chapter 1 you will find an initial quantitative and qualitative mapping prepared by CETYS Universidad that allowed us to know the creative ecosystem of Tijuana and to define two sectors for the development of various Road Maps, both in entrepreneurship and acceleration. Chapter 2 by Macedo Cham Consultores, corresponds to the steps for entrepreneurship in the creative industries with emphasis on audiovisual media, and in chapter 3, Dr. Flavio Olivieri incorporates a guide for cross-border internationalization for the audiovisual media subsector as well. In chapter 4, CETYS Universidad works integrating digital technologies in the traditional arts and finally, chapter 5 enriches the material by sharing financial tools for scaling and internationalization.

This effort intends to strengthen the collaborative work and progress of all of us, creative people who yearn for integral development and seek to participate, dialogue, and express ourselves through this fascinating world of the creative economy.

Claudia Basurto Vice President Asuntos Binacionales & Comuna Creativa

Advisory Colective ACCI

Art, Culture and Creative Industries

Yair Hernández Coordinación Operativa

Claudia Basurto Presidenta Ejecutiva

Marina Gurría

Eduardo Gurría

Luisa Gómez de Silva

Rigo Domínguez

Ana de Gurría

Abelardo Vázquez

Ingrid Kuri Ramón Toledo y Jorge Soto

Flavio Olivieri

Enrique Jiménez “Ejival”

ACCI Advisory Collective

Claudia Basurto Executive President

Cultural manager and promoter, teacher, graduate in Communication Sciences and completed a master's degree in Education and Cultural Integration. Certified in Arts Appreciation and Specialized in International Migration. She has experience in the public, social and private sectors in the areas of education, management, communication, art, and culture.

Rigo Dominguez

For more than 20 years, he has been a journalist and content creator about videogames. He has been part of various media, having the opportunity to cover national events such as the Electronic Game Show (EGS). and international, as the largest fair worldwide, the E3 (Electronic Entertainment Expo).

Luisa Gómez de Silva

Bachelor's Degree in Communications. She started in Television as a News Correspondent; worked in written press, radio and media research. For more than 5 years she was Administration Supervisor at 20th Century Fox Studios in Baja Mexico. She was directly involved in the production of major feature films such as Titanic, Kung Pow: Enter the fist, Pearl Harbor, and Master and Commander: The Far Side of the World

Ana de Gurría

In Mexico City, at the hand of her mother Amalia, who was a dressmaker specializing in evening and bridal gowns for over 30 years, Ana learned the Haute Couture craft. Between figurines, magazines, fabrics and the teachings of her mother, she manages to develop a special sensitivity to identify quality finishes in clothing, fabrics and tasteful designs.

Eduardo Gurría

Civil Engineer. He holds a master's degree in engineering from the University of Kansas. He founded Comercializadora de Insumos y Productos Siderúrgicos del Noroeste. He is a board member of Tijuana Innovadora and General Director of Arte en la Industria, treasurer of "Sala Anguiano - Rutas" gallery, member of the Taller Pro Discapacitados, A.C. board of trustees.

Marina Gurría

Bilingual professional in mechanical design experienced in product and tool design for the medical, plastic, metallurgical and electronics industries, new and sustainable products. Master in Process Design and Manufacturing. Project manager for the design process cycle.

Yair Hernández

Operational Coordinator

Academic, international cooperant, and a border activist; for the last 10 years he has been dedicated to designing and implementing projects for development in the areas of youth,

democracy, and gender. He has also collaborated in the projects' implementation at a territorial level coordinated with UNDP Mexico, INE, USAID Mexico, Fundación Telefónica, and INMUJERES, among others.

Enrique Jiménez "Ejival"

Promoter, journalist, critic, label-head of two record labels, and a great advocate of his native city. He has been an active citizen of Tijuana's cultural scene and its tireless promoter since the late eighties. His independent work as a producer and his intense passion for music and border life have led him to write about these topics in different media around the world.

Ingrid Kuri

Graduated in Law, Master's Degree in International Corporate Law and has a PhD in Social Sciences with a specialized in Economic Development and Social Exclusion. She is part of the Sistema Nacional de Investigadores (National System of Researchers) and has developed research projects related to cultural and creative industries.

Flavio Olivieri

Ph.D. in Philosophy and in Economic Development and International Development from the UABC. He has more than 30 years of experience promoting economic development between the border of Baja California and the United States.

Blanca Emma and Jorge Soto

Conductors of Sinfónica Juvenil de Tijuana (SJT - Orchestra), a non-profit organization whose objective is to promote the participation of children and young people in the city in orchestra activities, fostering their human development and improving their quality of life. At SJT, they have been known for facilitating the learning of dozens of children and young people by teaching them the discipline of learning to play an instrument, and how that knowledge can be applied in their daily lives.

Ramon Toledo

President and CEO of Busca Corp. Specialist in digital business, entrepreneurship and mentoring. Co-owner of INMUEBLES Y DESARROLLOS ARNAIZ, a family-owned real estate development company. With 20 years of experience in international management and business development, Toledo has numerous recognitions as one of the most respected entrepreneurs in bringing business to Mexico.

Abelardo Vazquez

He has been working in the professional music industry for more than 25 years. As a music producer, he has developed and signed in the most important record companies in the world such as Sony Music, Universal Music and Warner Music over a dozen artists, nine of which are from Mexicali.

Foreword

Tijuana-San Diego: Nodes of the Binational Creative-Productive Chain

Tijuana, "The Corner of Latin America" expands to touch multiple economic fronts. Noted not only for its commercial development of agricultural production and exports, it is also noted for its cultural and creative diversity, that is, in its own right, a vibrant node classified as a Global City.

The production function of classical economists considered the following productive factors: Capital, both directly productive or machinery and equipment, and indirectly productive, such as the infrastructure which is abundant in this area; Human Capital or Labor, both in quantity of labor and in quality, for its productivity and creativity, which is also very outstanding regionally; and land or geographical factors, such as the endowment of natural resources and location, which in the case of this area constitute a valuable and unique asset.

Indeed, this municipality is the original source and magnet of attraction of the valuable economic and productive resource that is Creativity; it is home to t his multidisciplinary talent.

Therefore, its creative-productive ecosystem embraces a wide range of subsectors that feed Tijuana's economy and development. From gastronomy -foodtrucks, signature food -, crafts, design, through the visual arts, audiovisual, digital development, applications, among others, with which Tijuana is consolidated as an important creative-cultural cluster and, of course, with all this, high value-added economic.

Since Creativity is a dual input, cultural as well as productive and economic, its effects derive in the generation of economic value, production, employment, exports, infrastructure and capital accumulation, technological development and innovation, which enables and empowers the municipality and its surrounding area to become the referred cultural and commercial node.

This is how the sum of these two elements, creativity and culture, constitute a duo for integral development. In quantitative terms, the added value generated by a locality's cultural heritage is measured in terms of the economic activity generated by it, which in this case represents 6.4% of total municipal production 1 .

Bordered to the north by the Californian city of San Diego, TJ-SD is a binational duo of creative, economic and social growth. This international linkage drives the supply and demand of goods and services related to creativity and culture.

By taking advantage of its geographic position as a development tool, Tijuana boosts the creative economy, being the convergence point of a plurality of cultures and traditions.

The rigorous work presented here reflects the diversity in this municipality, as well as its economic impact, and the participation of the cultural agents involved in the development of Tijuana's culture.

Economic-Creative Route Map

The following pages provide not only information, but a practical guide to understand and approach productive-creative ventures based on the regional profile resulting from the creative economy.

Based on collective work, its realization brings together various private institutions, academia, young people and economic agents from both countries, Mexico and the United States of America.

This exercise of "Research and Mapping of CCI Ecosystems in Tijuana" not only succeeds in determining the creative ecosystem of this municipality, or its contribution to the labor market and cross-border networks. Additionally, it is incorporated as a document of informative and working nature, which delivers in two main axes, mechanisms that contribute to the sustainability of Tijuana's culture and creativity.

In the informative axis, it offers a robust mapping of the creative ecosystem of this municipality, with its contribution to the economy, employment, sectors of higher value, exports, all based on data that support public policies and/or private developments, both current and forthcoming.

In the work axis, parallel to the information axis, it contributes with results such as the directory of key actors and the manual for entrepreneurship, which result in the implementation of support tools that provide actions and resources to young and more experienced entrepreneurs, professional agents and decision-makers seeking to develop and professionalize their cultural and creative activities.

This exercise represents a comprehensive, in-depth and detailed analysis of the creative and cultural industries, which identifies their outstanding sectors, strengths and opportunities, resulting in a study that branches out to provide tools and solutions for the development of creative enterprises and the search for financial sustainability.

Tijuana-San Diego on International Perspective

This project's set of elements launches the region among the most pioneering and innovative in the world. To this end, it adds the collaborative work between academia, institutions, the private sector and citizen participation.

Its depth of analysis and action regarding solutions, based on results obtained, makes this study a comprehensive project at the forefront of national and international levels.

Noteworthy is the integrality and transversality of the approach developed here, as it is not only a study of cultural or creative or social or economic and productive factors, but of all of them as a whole.

Thus, the activity derived from culture and creativity not only generates employment and wealth, but also increases the well-being of the population in general, since it promotes the expression and participation of citizens in political life, fosters a sense of identity and social security, and expands people's perception and with it, full democratization.

In the case of the Tijuana municipality, this work becomes a tool that articulates cultural and innovation ecosystems, which are key to trigger social and economic changes for development.

This is also a pioneering exercise on a national level and especially in the northwest region of the country. This, rather than being interpreted as a goal, is an innovative starting point in the productive and creative map, to replicate and develop more efforts like this one, promoting democratic access to culture, youth entrepreneurship and citizen participation.

At the international level, it puts Mexico on the map together with similar results applied in Spain, such as the Kultursistema2, or the Mapping of the Cultural and Creative Industries of Jamaica elaborated by UNESCO, just to mention a couple 3

But in this case of Tijuana, it stands out the regional and not only national focus of an extensive list of mappings.

While the study shows us an overview of the components of the region's cultural sector, it promotes the economic potential of the cultural and creative industry and is an engine for creators to innovate and find spaces and alliances where they can develop, which also places Tijuana as an international promoter that demonstrates the value of the creative economy.

On the road to development, these projects are required to offer, from an integral perspective, results that bring us closer to qualitative and quantitative information on culture in our country. And that in turn offer tools for its development.

Centripetal Force of the Creative Economy in Tijuana

Economic activity based on culture and creativity, like any economic activity, is unevenly distributed in space.

Traditionally, it has been thought that the main explanation for the differences in production structures between regions is due to their underlying characteristics (geographic, technological and resource availability). Along these lines, economic integration leads regions to specialize only according to their comparative and competitive advantages.

In Tijuana, as in other cities around the world, creative industries tend to be concentrated in specific areas or clusters. The above, seeking the viability of cultural productions with a sufficient scale of spectators, thus attracting actors and spectators from all over the country who want to participate in these productions.

The economy of agglomeration referred earlier is also critical on the supply side, with the availability (in volume and effective price) in these cities of complementary activities, such as other creators and activities complementary to the cultural operation.

Another element that contributes to the explanation of these unusually high levels of the economic weight of the economy of culture and creativity is, in addition to the generation and reproduction of creative elements in this municipality, the capacity to attract creative elements from other regions. Again, attributable to the supply and demand factors described above.

This can be called Centripetal Force of the Economy of Culture and Creativity, referring to the force or component of creativity, directed towards a center or specific point. In the case of mobility of the creative resource for cultural economic activity, it refers to the cities or regions that attract the resource to the center of that region, from peripheral regions where that creative resource was originated.

In the particular case of cultural and creative activities in Tijuana, this feature is preserved, generating economic benefits of experience, efficiencies and relatively lower transaction costs for all those activities that are located within this municipality.

Therefore, the dynamics of agglomerations is a complicated process in which the agents of the economy prefer to group together in order to obtain greater benefits. It is these higher profits that lead to economic growth and improve people's standard of living.

Formalization to Optimize Well-Being

Here it is worth asking, who are the relevant agents and actors in these production chains based on the use of creativity as an economic and productive input? In this block of work, priority has been given to citizen participation in order to involve all the public and private links that are indispensable.

In the search for sector sustainability, it is important to achieve financial sustainability. We know that investment in the creative economy is synonymous with economic well-being, which generates employment and constitutes a balance of trade.

In the case of Tijuana's creative enterprises, only 17% have foreign investment, which indicates that, although cross-border dynamics exist, the rest of the companies are developed with their own or national investment, hence the importance of contributing to the formalization and promotion of cultural projects at a national level.

The achievement of the multiculturalism that Tijuana offers allows and leads to consider collaborative exercises between creative, cultural and economic, binational and even multinational agents.

The access to tools such as national or international financial productive funds that detonate professional development that allows us to export our creative capacity, that is, the local procurement of talent in our region.

Care must be taken to avoid a tendency for Tijuana's creators to emigrate from their communities, which would represent a loss of highly talented human capital and the contribution of their creativity to the city.

Undoubtedly a latent risk, given the high degree of migratory culture in the area. Therefore, it is of crucial

importance to recognize the talent that exists in Tijuana and encourage it to develop within the municipality, identifying the socioeconomic factors that drive, shape and encourage the mobility of talent and promote them in the city in order to prevent this mobilization from continuing.

As part of the incentive to the Creative and Cultural Industries, Baja California has Instituto de Cultura de Baja California, which aims to generate the necessary conditions to increase citizens' access to cultural goods and services.

At the regional level in Tijuana is Instituto Municipal de Arte y Cultura, whose function is to connect artists with the inhabitants of the municipality, as well as to encourage and promote cultural spaces and activities.

Funding is another measure of great impetus for the sector. There are several alternatives, such as public funding, promoted by Secretaría de Cultura of the Mexican government, or Fondo Nacional para el Fomento de las Artesanías, Comisión Nacional de Ciencia y Tecnología, among others. There is also private financing, such as Angel investment funds or crowdfunding, and there are also sources of credit entities, either through banks, business loans, loans or virtual banking 4

In addition, the formalization of labor and creative human capital takes on special relevance, allowing them to be inserted into productive chains with greater value added, with coverage of social welfare and educational services, sources of financing, export and import mechanisms, among many other benefits.

It is encouraging to see projects such as this one, whose main component is articulation and collectivity, which in turn implies the participation of cultural agents.

Although the relevance of this study is evident, the contribution, availability and participation of cultural agents, and of society in general, is of utmost importance, without it we would not have verifiable and truthful data. The objective is for these studies to be recurrent and to promote a culture of participation in them.

This set of works is not of a conjunctural nature, but rather of a structural analysis and of medium and long term potentials. It is partly for this reason that it does not focus mainly on the conditions and effects derived from the Covid-19 pandemic, although it does show the context in which the CCI were developed in the region.

Certainly, for the world and for the region, the pandemic brought new challenges, innovations and creations to the cultural sector, so it is essential to

continue with these analyses in order to be able to compare and make better informed decisions. CCIs evolve along with the social, economic and technological environment, it is imperative not to neglect their study, to recognize the impact they have at regional, state and national levels and thus contribute to their development and promotion.

The bet derived from this exercise is then to make the most of this economic potential for growth and development resulting from the comparative and competitive advantages of our economic-cultural activity, taking into account the importance of technology.

The challenge is to achieve this in the era of globalization, within a framework of respect for our identity and cultural diversity.

Ernesto Piedras 5 Economist (ITAM-London School of Economics)

1 Sánchez-Jofras J., Kuri-Alonso I., Cabrera- Flores M., León-Pozo A., Cota-Cota C., Patrocinadores, Políticas Públicas y Herramientas para el Escalamiento e Internacionalización. 2021, Sostenibilidad Financiera by Claudia Basurto - Issuu

2 KULTURSISTEMA. Matriz para la Interpretación y Mapeado de los Ecosistemas Culturales y Creativos, (España, 2017), https://cerlalc.org/publicaciones/kultursistema-matriz-para-la-interpretacion-y-mapeado-de-los-ecosistemas-culturales-y-creativos/

3 UNESCO, Mapping of the Cultural and Creative Industries in Jamaica, (Jamaica, 2020), https://es.unesco.org/creativity/policy-monitoring-platform/mapping-cultural-creative.

4 Sánchez-Jofras J., Kuri-Alonso I., Cabrera- Flores M., León-Pozo A., Cota-Cota C., Investigación y Mapeo de Ecosistemas de las Industrias Culturales y Creativas en Tijuana. 2021, Repositorio Institucional Cetys: Investigación y Mapeo de

Ecosistemas de las Industrias Culturales y Creativas en Tijuana.

5 In the development of this document I am grateful for the valuable contribution of Marissa Manzanilla López, Coordinator of Nomismae Consulting, and Mariana Espinoza Mendoza, Analyst of Nomismae Consulting.

Contents

Acknowledgments

Preface

Foreword

Ernesto Piedras

I Study and Mapping of Cultural and Creative Industry Ecosystems in Tijuana Cetys Universidad

•What are the cultural and creative industries?

•Methodological proposal for the study

•Perspectives of the cultural and creative Industries in Tijuana

•Tijuana-San Diego, the binational region

•The value of the cultural and creative economy in Tijuana

•Labor market contribution

•Women’s participation in CCI

•Mapping the Cultural and Creative Industries of Tijuana

•Sectors and activity categorization of the CCI

•Mapping methodology

•Location map

•Creative professionals

•Young creatives

•Business models and financing for young entrepreneurs in cultural and creative industries

•Situational analysis of cultural and creative industries

•Authors

•Qrs

2 Roadmap to Venture and Escalate in Cultural and Creative Industries

Macedo Cham Consultores

• Background

• Introduction

What Are the Contents of this Manual?

Who Can Benefit from This Manual?

How to Use this Manual

Am I an Entrepreneurial Entrepreneur?

• How Do I Venture in CCIs?

The Entrepreneur’s Guide: ROADMAP

The Success Triad

Zooming into the Roadmap

Roadmap: 10 steps to become an entrepreneur

Steps and Considerations to Achieve Scalability

The Scalability Model of Audiovisual Media

Examples and Success Stories for Scalability

Examples and Success Stories for Scalability

• References

• Special Collaborations

• Acknowledgments

• Glossary

• Credits

• Annexes

1. Success Triad Checklist (QR1).

2. What Do I Need to Know about CCIs and The Entrepreneurial Ecosystem in Tijuana? (QR2).

3. Step by Step Business Model (QR3)

4. Basic Guide to Manage Copyrights and Intellectual Property Rightsl (QR4).

5. From One Cre@tive Mind to Another: Earthly Steps to Show Sublime Creativity (QR5).

6. Roadmap para emprender. 10 pasos (QR6).

7. Roadmap to Scale. 10 steps (QR7)

8. Scalability Model (QR8).

3 Transborder Internationalization Guide within Cali-Baja, for the subsector of Audiovisual Media for the Creative and Cultural Industries of Tijuana

Flavio Olivieri Borobia

•Introduction

•Contextual Continuity

Base Definitions

•Key findings from CCI ecosystem mapping and scalability/entrepreneurship roadmaps

Scalability Findings

Market Context

•The internationalization of CCI in Latin America

•The Cultural and Creative Industries in California, USA

•Transborder Internationalization Strategy in Cali-Baja

•Experts Interviewed

•Trans border Internationalization ROADMAP in Cali-Baja

•About the Author

•References

•Qrs

4 Road map to Scalability of Cultural and Creative Industries Integrating Digital Technologies

Cetys Universidad

•Before you begin

•Agile methodologies in the development of startups

•13 steps for scaling up activities in the cultural and creative industries

•Additional support

Resources for startup acceleration and scalability Training to become financially fit and tech savy Public support programs and institutions

•Creative professionals interviewed

•About the authors

•References

•Qrs

5 Sponsors, public policies, and scaling up and internationalization tools

Cetys Universidad

• Introduction

• Public investment

International Funds

National Funds

Regional Funds

• Private Investment

Angel investment funds

Crowdfunding Banking

• Links

Public funding sources

Private funding sources

Crowdfunding funding sources

Lender sources

• Autoría

• Qrs

Study and Mapping of Cultural and Creative Industry Ecosystems in Tijuana

Cetys Universidad

Authors

•Jorge Francisco Sánchez-Jofras

•Ingrid Kuri-Alonso

•Mayer Cabrera-Flores

•Eduardo A. Durazo-Watanabe

•Alicia León-Pozo

•Creta Cota-Cota

•What are the cultural and creative industries?

•Methodological proposal for the study

•Perspectives of the cultural and creative Industries in Tijuana

•Tijuana-San Diego, the binational region

•The value of the cultural and creative economy in Tijuana

•Labor market contribution

•Women’s participation in CCI

•Sectors and activity categorization of the CCI

•Mapping methodology

•Location map

•Mapping the Cultural and Creative Industries of Tijuana •Creative professionals •Young

Research for the development of Cali Baja Region

We are pleased that multiple actions continue to take place based on the visionary initiative called Tijuana Innovadora under the leadership of Don José Galicot.

First, the Study and Mapping of Cultural and Creative Industry Ecosystems in Tijuana was developed in alliance with Tijuana Innovadora, under the auspices of an international cooperation program with the Center for International Private Enterprise (CIPE), through the Mexico Project: Fostering Democratic Culture by Addressing Citizen Insecurity and Encouraging Youth Entrepreneurship and Civic Participation.

Secondly, this project was possible due to the experience of CETYS University professors and researchers working with the Centers of Excellence. We favor research on innovation in cultural and creative entrepreneurship due to its strategic relevance to the binational region by integrating research groups from the Institute for Innovation, Entrepreneurship and Social Change (INNSIGNIA). These actions are part of continuous efforts to study factors that bind together regional innovation ecosystems, which are vital for triggering social and economic changes for the development of the Cali Baja Region.

Thirdly, I want to stress the importance of communicating research carried out by our faculty, in this case, in support of young creatives and women entrepreneurs of the Cultural and Creative Industries. Success models will be documented in a second phase to support the ecosystem's growth.

We also thank the Advisory Collective Comuna Creativa, a sphere of Tijuana Innovadora, for their contributions during the research process, likewise the creative professionals, young people, and women who participated in discussion groups. Similarly, we are grateful to all those who joined in this effort as agents of Tijuana's cultural and creative economy.

Finally, we remain committed to developing this field with Tijuana Innovadora and CIPE.

Dr. Fernando León García President of the CETYS University System

What are the cultural and creative industries?

The creative economy and cultural and creative industries are relatively new concepts, introduced in some industrialized countries in the course of the 1990s. Australia was a pioneer, but it was in the United Kingdom where they gained the most momentum, with the integration of the Department of Culture, Media and Sport (DCMS). They are considered economic development policies, but also a cultural phenomenon that incorporates the values of the knowledge society and commercializes symbolic content. So it was that governments began to view the cultural sectors as productive areas rather than simply activities demanding public resources allocated on the basis of their intrinsic value or outside the market (Flew & Cunningham, 2010)

Originally, the cultural industries were based on models of centralized production (media) and real-time consumption (artistic events) following production, distribution, and consumption schemes. Later, creative industries based themselves on technology and education policies, but were also able to operate in decentralized networks of production and distribution of digital content and consumption mediated by new technologies.

In 2010, the United Nations Conference on Trade and Development (UNCTAD) classified the creative industries in four areas: heritage, arts, media, and functional creations.

Following this, CCI were identified based on the contributions of human creativity, which has a dual nature that is, it is both a product and a symbolic good at the same time, thus allowing the recognition of some degree of intellectual property.

In harmony with this conception, the Inter-American Development Bank (IDB) has defined the “Orange Economy” as the set of linked activities that allow ideas to be transformed into cultural goods and services, with their value determined by their intellectual property content (Buitrago & Duque, 2013).

Following these ideas, digital technology and intellectual property are the elements that generate capital gains in CCI. In Mexico, there is a notable interest in understanding and reflecting on these dynamics, due to their sociocultural, political, and economic effects. Initially, studies focused on the characteristics and infrastructure of the cultural sector, both at the national level (Conaculta, 2003) and at the state level (Cruz-Vázquez, 2011), and on the contribution of CCI as industries protected by copyright (Piedras-Feria, 2004), intellectual property (ProMéxico, 2013), government policies (Crovi-Druetta, 2013), and their link with the sociocultural environment (García-Canclini & Piedras-Feria, 2008). Similarly, attention has been drawn to regional (Valdivia, 2021) and local (Sánchez-Jofras & Kuri-Alonso, 2020) dynamics. It is a growing research field with permanent seminars at the UNAM’s Center for Research on North America (CISAN).

Methodological proposal for the study

General goal

Characterize the ecosystem of creative industries in Tijuana, Baja California, by mapping its strategic actors.

Specific goals

1.Classify the strategic actors that make up the ecosystem of creative industries in Tijuana, Baja California.

2.Carry out a situational analysis of the ecosystem of creative industries, and of youth and gender inclusion processes in Tijuana, Baja California.

3.Identify actors and mechanisms that contribute to the sustainability and future funding of the sector.

To perform the study, the industry mapping methodology proposed by the National Consulting Center (CNC, 2019) was taken as a reference. Accordingly, the project was organized in three phases to develop an initial characterization of the cultural and creative industries in the city of Tijuana, Baja California. These phases include information gathering and analysis techniques, based on both quantitative and qualitative approaches.

The first phase will involve a classification of the strategic actors that make up the creative industry ecosystem in Tijuana. To this end, a couple of quantitative instruments were designed, one aimed at young creatives, and the other aimed at creative professionals. By administering these instruments and analyzing secondary sources, we characterized economic activities and prepared a directory of strategic actors, as well as a georeferenced map.

In the second phase, we conducted a situational analysis of the creative ecosystem and of youth and gender inclusion. For this, qualitative data collection techniques were used, such as focus groups. Three discussion tables were organized, the first aimed at professionals, entrepreneurs, and creatives in general, the second aimed at young people associated with or planning to become involved in this creative ecosystem, and the third one focused on women participating in the ecosystem. From the analysis of the tables, a strategic diagnosis (SWOT) was made of the creative industries in the city.

In the third phase, desk research was conducted to identify a series of mechanisms with the potential to contribute to the funding and sustainability of the sector, resulting in an annexed document. Finally, the fourth phase consisted in the technical documentation of the study and the presentation of the results.

Below is a table that shows the relationship between study categories, methodological strategies, deliverables, and evidence.

Stage 01 Classify the strategic actors

Study categories

Economic activity, contribution to the labor market, intersectoral linkage, establishment of cross-border work networks, inclusion processes (women and young people), challenges and opportunities in general.

Methodological strategy

Design and apply a survey that allows the collection of information corresponding to each category.

Stage 02 Conduct a situation alanalysis

Study categories

Strengths, weaknesses, opportunities and threats of the most relevant sectors or those with the greatest presence in the creative economy in Tijuana, including youth entrepreneurship

Methodological strategy

Design a group interview script. Carry out directed group interviews (discussion tables), document a record of the process and SWOT analysis.

Deliverable Evidence

Directory of key actors and general mapping.

Electronic with georeferenced mapping.

Deliverable Evidence

White paper of the situational analysis of the creative industries of Tijuana.

Stage 03 Identify financial sustainability mechanisms

Study categories

Sponsors, public policies, and tools for escalation and internationalization.

Methodological strategy

Documentary research and group interviews.

Written document. Photographic record of round-table discussions. Attendance record.

Deliverable Evidence

Section within the white paper, recommendations and list with web links.

Written document.

Perspectives of the cultural and creative industries in Tijuana

Tijuana-San Diego, the binational region

The municipality of Tijuana is a strategic pole of development, due to its border with the state of California in the United States, in particular San Diego County. According to the National Institute of Statistics and Geography (INEGI, 2021), Tijuana has 1,922,523 inhabitants, half of whom are 29 years old or younger, while the population of San Diego is 3,298,634 inhabitants, of whom 21.4% are under 18 years old (U.S. Census Bureau, 2020). The Tijuana- San Diego binational region is the largest border urban agglomeration between Mexico and the United States, home to 34% of the total population in the international border zone (INAPLAN, n.d.).

The value of the cultural and creative economy in Tijuana

To gain insight into the economic dynamics of the CCI in Tijuana, secondary data was consulted in the Economic Censuses (2019) of the INEGI, as the most complete source to offer data disaggregated by municipality. The data matrix was structured from the information collected on economic activity carried out in Tijuana, Baja California, between January 1st and December 31st, 2018. A total of 9,018 economic units linked to cultural and creative industries were identified, which represents 17.9% of the economic units registered in Tijuana in the aforesaid Economic Censuses (2019). This information allows us to present the distribution of these activities by census category.

Other points of note from the data from the INEGI Economic Census (2019):

• 6.4% Of the total production in the city corresponds to CCI, which represents more than $22 billion pesos.

• In Tijuana, the added value of CCI accounted for as much as $11.75 billion pesos, which represents 7.5% of the value of all ecomomic activity in the city

• CCI generate 7.5% of the city’s gross census value added

The gastronomy industry stands out, accounting for over 50% of CCI, followed by artistic intermediation and auxiliary industries at almost 21%. They are followed, in descending order, by handicrafts at 7.5%, fashion at 3.3%, and publishing, design and marketing at 2.9%.

Figure 1. Percentage of CCI participation by sector in Tijuana

Source: Economic Censuses, INEGI 2019

An analysis of the total gross production of the CCI in Tijuana shows that gastronomy accounts for the largest share at 36.8%, followed by handicrafts at 23.3%, the fashion industry at 9.4%, the publishing industry at 7.8%, and then communication, audiovisual and radio broadcasting at 7%.

In terms of gross value added in the municipality, the gastronomy and handicrafts sectors stand out again, representing 33% and 26.6% respectively, followed by the fashion industry at 10.4%. The publishing industry, artistic intermediation, higher education, audiovisual communication and radio broadcasting, and design and marketing all contribute between 5% and 6.5%.

Labor market contribution

Total creative employment in CCI was quantified using the INEGI registry (2019). According to this analysis, creative establishments in Tijuana employ around 71,511 people, which represents 12.2% of the employment estimate in the entire local economy. The figure below presents the distribution of employment in each creative sector, with gastronomy, handicrafts, fashion, and higher education leading the way.

Source: Economic Censuses, INEGI (2019)

Women’s participation in CCI

Women represent 40.3% of the total employed personnel (TEP) in the CCI. They are particularly underrepresented in sectors such as handicrafts, digital media, and software and architecture, where they account for 24.2%, 27.5%, and 34.8% of employed personnel, respectively. On the other hand, they enjoy greater representation (albeit only very slightly) in sectors such as fashion and artistic intermediation, and auxiliary industries, at 52% and 51.7% respectively.

Figure 2. Percentage of total employed personnel by sector in Tijuana

Figure 3. POT of men and women by CCI sector in Tijuana Source:

The CCI represent 8.4% of total remuneration in Tijuana, which is equivalent to more than 5 billion pesos (INEGI, 2019). The sectors with the highest percentage of remuneration within the CCI are, once again, handicrafts, gastronomy, publishing, fashion, and higher education. It should be noted that, despite the fact that the gastronomy sector has the highest percentage of employed personnel (40.1%) of all the CCI, it is the handicrafts sector that has the largest proportion of remuneration, at 34.6% of total CCI employee remuneration, followed by gastronomy at 23%, the publishing industry at 10.6%, and fashion at 10.2%. These four sectors alone represent 78.3% of CCI remuneration in Tijuana, which is equivalent to almost 4 billion pesos (INEGI, 2019).

Mapping the Cultural and Creative Industries of Tijuana

Sectors and activity categorization of the CCI

To categorize the CCI sectors and activities, economic classifiers were considered: the Mexican National Accounts System and the North American Classification System (NAICS). Similarly, the dimensions of the matrices proposed by the United Nations Conference on Trade and Development (UNCTAD) in its 2010 report were compared, as were those identified by the Inter-American Development Bank (IDB), referred to under the heading of “Orange Economy” (IDB, 2013). Additionally, we sought to establish a correspondence with the sectors and activities present in the area, and the categories were discussed in consultation with expert teachers from CETYS Universidad and with the Art, Culture, and Creative Industries Advisory Collective, convened by Tijuana Innovadora.

Based on the described methodology, the cultural and creative industry sectors were identified as follows:

13. Supporting services

12. Gastronomy and beverage production

11. Music production and promotion

10. Graphic, digital or 3D desing

9. Audiovisual production

8. Mechanical and electronic design

7. Digital creative services

6. Fashion

5. Marketing

2. Performing arts and shows

4. Architecture

1. Performing arts and shows

3. Handicrafts

Mapping methodology

The mapping of CCI is a central component of this study, according to BOP Consulting:

It is a quick way of defining a task that encompasses a whole series of analytical methods for collecting and presenting information about the variety and reach of the creative industries. The main intention of the mapping is to put the economic value of creative industries into perspective, particularly in places where almost nothing is known about them (2010: 9).

Thus, this exercise includes the location map and the analysis of secondary data, particularly data from the Economic Censuses (INEGI, 2019) as well as data collected by the instruments designed to conduct this research.

Location map

Between April and May 2022, 130 entities were registered and gave express authorization for their inclusion in the map in the survey. They are located in the metropolitan area of Tijuana, with several entries in the coastal area corresponding to Rosarito, and only one entry gives its address in San Diego, CA.

The map can be viewed here:

https://www.google.com/maps/d/u/0/edit?mid=1ktfSsdnbZomDnmZSMkxCguX2tvpPEnte&usp=sharing (QR1)

Títere Vivo

Adress: Adolfo Lopez Mateos 18 Lopez Mateos 22030

Tijuana, B.C.

Delegación: Playas de TIjuana

Phone: 664 761 7269

Webpage: www.titerevivo.com (QR2)

Facebook: https://www.facebook.com/TitereVivo (QR3)

Instagram: https://www.instagram.com/titerevivo (QR4)

Twitter: https://www.twitter.com/TitereVivo (QR5)

TikTok: https://www.tiktok.com/@titerevivo (QR6)

Sector: Artes escénicas y espectáculos

Subsector: Producción de eventos musicales o escénicos

The information was processed using Google Maps and the markers are classified by color according to the sector.

When the cursor is placed over the individual markers or pins, a table is displayed with detailed information on the entity, including its address, telephone number, social networks with hyperlinks, sector, and subsector.

Figure 5. Example of information displayed on markers

Source: Own work with Google Maps.

The mapping features were classified into 13 categories and ordered by frequency. This systematization allows us to count by category and unit, and the information is displayed from highest to lowest according to the frequency of each sector.

Survey distribution

The instruments were distributed through the snowball technique based on key actors established in the terms of reference of this initiative. Likewise, the Comuna Creativa Consultative Collective helped to disseminate the first questionnaire, which we titled the extended questionnaire, since the time required to respond to it was approximately 15 minutes.

Based on the first results obtained in the first week of dissemination, it was decided to make an express version of the questionnaire in order to obtain data to characterize the CCI ecosystem. An online survey service was used to facilitate the instrument, which could be completed on a computer or through a smartphone. A little more than a month was available for the collection of information (between April and May 2022), and a press conference was used to disseminate the survey through various media outlets. It was also sought to reach the

largest number of creative agents through Tijuana Innovadora's social networks. In addition, a questionnaire was distributed to students and professionals in educational and work centers to learn about the situation of young people and women in the cultural and creative industries.

Regarding the scope of the study, it is important to point out that this is an exploratory research, whose objective is to characterize the ecosystem of the cultural and creative industries in Tijuana, based on a non‐probabilistic sampling or survey, aimed at creative professionals and young creative people. Based on these data, a directory and a map were created to determine their territorial distribution. In this sense, it is a first approach to the ecosystem's characterization, which represents development possibilities for creative agents and creative economy companies in the region.

Source: Mapping April-May 2022

Figure 6. Frequency table with CCI sectors

Creative professionals

Sectors and activities in the CCI of Tijuana

The data obtained through the questionnaires distributed to creative professionals offer an overview of the sectors and activities linked to the cultural and creative industries of Tijuana. Two instruments were simultaneously administered: the long version of the questionnaire to be answered in 15 minutes and the express version of the questionnaire to be answered in 2 minutes.

The first instrument was answered by 47 participants, while 157 responses were obtained from the second. The extensive questionnaire made it possible to filter economic activity between companies and independent agents, while the express questionnaire made it easier for the participants to define the sector in which they carry out their activities, with the possibility of specifying services or specialties within their area. The results of the exercise are presented separately.

Based on the results of the extensive questionnaire, the registered sectors that feature most prominently are performing arts and shows and those relating to audiovisual production. In second place comes marketing, followed by visual and plastic arts and support services for cultural and creative industries. Also notable is the digital creative services sector.

Performing arts and shows

Audiovisual production

Marketing

Plastic and visual arts

Supporting services

Digital creative services

Music production and promotion

Architecture

Electronic and mechanical design

Handicrafts

Fashion

Graphic, digital or 3D design

Gastronomy

Figure 7. Sectors by creative organizations

Source: Express questionnaire for professional creatives

Notable within performing arts and shows are organizations dedicated to music performance and singing, as well as the production of musical or stage events. The audiovisual production sector, on the other hand, is mainly dedicated to production and filming, but also includes preproduction, screenwriting, and artistic creation, postproduction and editing.

Marketing organizations are engaged in advertising and content production as well as strategy and branding services, while the digital creative services sector offers digital marketing and software development services. It

is worth noting that the visual and plastic arts sector primarily involves artistic production, although art trade, research and curatorship are also represented.

In the music production and promotion sector, sound recording studios are especially noteworthy, as is the organization of events, festivals, and concert tours. Lastly, support services for CCI include public relations, intellectual property and copyright, qualification and education, project management, and professional talent hunting.

Figure 8. Sectors by individual creative agents

Source: Express questionnaire for professional creatives

Based on the express questionnaire aimed at creative professionals, we were able to identify the activities involved in the most prominent sectors. In addition to those already mentioned, the performing arts and shows sector is complemented with dance and acting. In visual and plastic arts, the category of other artistic expressions encompassed several answers. In the digital creative services sector, creatives highlighted the activities of multimedia design, digital marketing, video games, interactive and virtual reality (VR), and online content distribution. In audiovisual production, services like sound design, as well as location, casting and props, were mentioned. Graphic, digital or 3D design includes graphic design, photography, and video, as well as web development and digital applications (apps). Additionally, the music production and promotion sector features musical composition, live event production, postproduction of sound recordings, and growingly, online editing and streaming services.

Companies and independent professionals

The extensive questionnaire for creative professionals indicates that 53.95% of participants carry out economic activities as independent professionals while 46.05% do so as a company. Further, 40.43% are self-employed professionals, while 29.79% work in small companies (with up to 50 workers) and only 6.38% work in companies with over 50 workers.

In terms of total employed personnel (TEP) by age range, most heavily featured is the group between 25 and 35 years of age, followed by those aged between 35 and 44. Nine of the employees are full-time workers and only one is a volunteer or intern, while four are independent workers or freelancers.

Figure 9. POT by type of contract in the CCIs

Source: Extensive questionnaire to professional creatives

Interregional linkages

Our findings show that 17.02% of CCI companies in Tijuana benefit from foreign investment, while 82.98% lack this. Inputs obtained abroad illustrate the cross-border dynamics of these companies, and these include education and mentoring, firstly, and then to a lesser extent, supplies and technology. At the same time, the services offered to the international market are associated primarily with demand-driven production, followed by design and ideation services, and then marketing and customer services.

Concerning collaboration with other organizations or companies, the participants report that 30% of entities with which they partner are local, 26% regional, 25% national, and 16.7% foreign. Only 2% do not collaborate with others. Altogether this shows the diverse nature of collaboration in the CCI.

Source: Extensive questionnaire to professional creatives

Figure 11. Collaborations in the territory

Figure 10. Percentage of foreign capital in ICC of Tijuana

Source: Extensive questionnaire to professional creatives

Intersectoral linkages

It was found that the vast majority of respondents belong to the productive sector (58.70%), followed by the social sector (15.22%), academia (6.52%), and government (4.35%). Similarly, 15.22% indicated that they belonged to another sector, providing the following responses: cultural, independent-educational, art, and cultural-musical.

With the aim of gaining deeper insight into the type of interaction that occurs between sectors, six interaction options were established and the strength of this interaction was measured by sector. The options were talent exchange, knowledge exchange, commercial transactions, funding, regulation and standards, and joint development of products and services.

For talent exchange, it was found that there is most interaction with the academic sector (50%). In knowledge exchange, the most common sector is also academia (76.09%). For regulation and standards, the sector that sees the most interaction is the government sector (43.48%). Finally, for the category of joint development of products and services, the most common sector for interaction is the productive sector (67.39%).

Respondents were asked to note the sectors with which they were closely linked and had strong partnerships. The responses reveal a clear tendency to associate or collaborate with the academic sector (76.09%), followed by the social sector (69.57%), the productive sector (67.39%), and the government sector (54.35%). It is clear that collaboration occurs between sectors, since only 4.35% of those surveyed report not collaborating.

Figure 12. Membership sector

Figure 12b. Linkage and collaboration sector

Figure 13. Intersectoral collaboration

Specifically, collaboration with educational centers occurs more frequently to develop internal projects (56.52%), followed by collaboration in research and internships (52.17%), social service (39.13%), development and continuous improvement (23.91%), recruitment and hiring (21.74%), and funding or donations (13.04%).

Other types of collaboration were found to a lesser extent: development of workshops, qualification, and cultural presentations.

Figure 14. Interaction between sectors by activity

Figure 15. Linkage with educational centers

Young creatives

Demographics

The survey of young creatives was focused on learning about the experiences, concerns, and expectations of young Tijuana residents who identify as part of the cultural and creative industries, and contributing to their visibility from their own experiences.

This survey focused on young people between the ages of 15 and 29 who are currently part of the CCI, whether as independent professionals, employees, interns, volunteers or students.

The highest response rate was found among 24 to 28-year-olds at 66%. Of these, 52.52% identify as women, 40.29% as men, and 5.04% as non-binary, while 2.16% preferred not to say. In addition, 2% reported living with a disability.

5%

40.3% 31 Creacción

Figure 16. Age distribution of young people surveyed

25/34 83%

18 6%

Figure 17. Gender identities in creative youth

52.5%

Of all the young people surveyed, 90% are only Mexican and the remaining 10% also hold US nationality as dual nationals. Since Tijuana is a border city, the inhabitants of both sides of the border share a close relationship; more than 50% of young people have a visa to cross into the United States, and do so at least once a month.

Likewise, they were asked about their area of professional training, either as students or professionals. The greatest proportion of respondents are training or trained in civil engineering, architecture or design (45.71%), followed by artistic education or music (22.86%); industrial engineering, processes and manufacturing (6.67%); administrative sciences, tourism and marketing (5.71 %); renewable energies, ecology and environmental management (5.71%); philosophy and humanities (4.76%); technology, electronics and computer science (3.81%); languages (1.90%); political sciences, law and international relations (0.95%); and social sciences, history, and social work (0.95%).

Figure 18. Areas of professional training for young creatives

Inclusion processes

It was found that the majority have been part of the CCI for 0-2 years (54.29%), followed by 3-5 years (28.57%), 6-10 years (7.62%), and more than 10 years (9.52%).

Regarding the type of involvement in the CCI, the two main areas of youth participation are as university students (57.14%) and as independent creatives (20%).

As for the CCI subsector in which they currently operate or would like to do so in the future, the responses show visual and plastic arts as the most common subsector at 19.72%, followed by architecture on the one hand, and digital design and programming on the other (each at 11.27%).

In addition to the previous subsectors, the following were also found, but less frequently: fashion (2.82%); music production and promotion (2.82%); radio broadcasting, electronic or digital media and cinema (2.82%); cultural management (2.82%); museums, galleries and libraries (1.41%); production of alcoholic beverages (1.41%); artistic education (1.41%); development of software and digital applications (1.41%); video games, AR and VR and interactive (1.41%); literature and print media (1.41%); and public relations (1.41%).

Figure 21. Subsectors in wh ich they aspire to develop professionally

Figure 19. Time associated with the creative industry

Figure 20. Professional characterization of young people surveyed

Discrimination

According to data from the National Council to Prevent Discrimination or CONAPRED (Consejo Nacional para Prevenir la Discriminación, 2017), the largest age group in Mexico is that of young people. One of the main problems that this group faces, in addition to poverty, is the structural discrimination perpetuated by the state, society, and the private sector.

Likewise, CONAPRED notes that young people are excluded from both employment and educational opportunities. They are discriminated against on various fronts, because of their social status, their physical

appearance (linked to their economic status), the school where they studied, the place where they live, or even their posts on social networks. This context contributes to keeping young people in poverty or unable to move up the social ladder.

In this sense, the young people surveyed were asked if they had experienced any form of discrimination or harassment during the last five years, with the three most common forms of discrimination being due to sex (30.48%), age (19.05%), and socioeconomic status (16.19%).

Figure 22. Juvenile discrimination in order of frequency

On the other hand, our analysis of job precariousness has shown that the majority do not have any legal benefits (57.14%), while only 38.10% have medical insurance, 8.57% life insurance, 9.52% a savings fund, 8.57% a retirement fund manager (AFORE), and 1.90% accounts and investments.

Priorities

Young creatives were asked what they see as the priorities for the continued engagement and success of young people in the creative industries over the next two years. The five most common responses were the following:

46,48 %

Help young creatives access affordable rentals, equipment purchases and funding.

Reduce cost barriers to access university or higher education.

Provide opportunities for training or coaching, including internships in companies.

Promote entrepreneurship assistance and financial education, including mentoring.

Ensure workplaces and creative places are safe and promote respect and diversity (social, cultural, age or sexual).

Figure 23. Percentage of young people with medical coverage

Figure 24. Hierarchy of priorities for youth success in the cultural and creative industries

38.1 %

Entrepreneurship

Entrepreneurship and creativity go hand in hand, and young entrepreneurs also bring their energy and enthusiasm to these processes. Taking this into account, the survey of young creatives asked about the impact achieved by their activity within the CCI, where 5 was a significant contribution and 1 was no contribution. The following aspects scored most highly:

Creativity or individual expression

Education

Ideas and content

Activities

Services

Cultural experiences

Production

Network generation

Generation of spaces and collaborative practices

Employment opportunity for women

Employment opportunity for young people

Employment opportunity for people with disabilities

Cross-border presence (rest of California)

Presence in international networks

Cross-border projects (San Diego County)

International projects

International markets

The experience of culture as a shared resource

Products

The democratization of culture

Attendance, use and consumption of cultural goods and services

Promotion of integration and social cohesion

Health

Environment

Tourism

Distribution

Participation in public policies

Participation in new plans and measures to promote CCI

Empowerment of minority sectors

Cross-border markets (San Diego/California)

Generation and/or maintenance of direct jobs

Legal benefits

Generation of indirect jobs

Employment opportunities for other minorities

Transfer of intellectual property

Multi-, inter-, transdisciplinarity

Intersectoral cooperation

Dialogical or hybridization processes

Cross-border presence (San Diego County)

International presence

Cross-border network presence (San Diego/rest of California)

Cross-border projects (rest of California)

Figure 25. Assessment of the impact generated by youth activity according to their perception

Business models and financing for young entrepreneurs in

cultural and creative industries

The survey found that more than 40% of the young people surveyed have used their own capital to boost their activity in the CCI, while 29.58% have been supported with scholarships and 21.13% have not participated in any of the cross-border networks in San Diego or the rest of California. To a lesser extent, seed capital (8.45%), subsidies (8.35%), calls for professionalization (5.63%), public-private partnerships (5.63%), incubators (2.82%), and conversions (2.82%) were also mentioned.

To grow their businesses, young people most frequently report investing in marketing, registering their economic activity, and requesting a bank loan.

They were also asked if they have requested and/or received any monetary or in-kind assistance from the government for their business or practice, to which less than 20% responded affirmatively: just 17.14% have requested government assistance.

Figure 27. Identified mechanisms for business growth

Figure 26. Promotion models used by the young people surveyed

The respondents mentioned a number of assistance programs through which applications had been made, including the Program for the Promotion of Cultural Projects and Joint Investments (FONCA), the Fund for Quality Film Production (FOPROCINE), the Benito Juárez Scholarship, Support for Artistic Residencies, and support grants.

As for the visibility strategies that young people use to position themselves in the creative economy, it was found that the three most common strategies are networking (52.11%), fairs and conventions (38.03%), and visibility platforms (32.39%).

52.1% Networking

38% Fairsand conventions

32.5% Visibilization platforms

Figure 28. Strategies to position yourself in the m arket

Figure 29. Current participation of youth surveyed

Situational analysis of cultural and creative industries

• Organic capacity to build solidarity and affective bonds within the creative community.

• Flow of markets, knowledge, talent, technology, and culture, based on cross-border dynamics.

• Potential of the CCI to develop healthier societies and citizens.

• Access to digital platforms as a means of interaction.

• Transcultural, cosmopolitan, diverse, and creative environment.

• Nationally and internationally recognized industries (gastronomy, wine, and beer).

• Emerging industries: cinema, digital animation, music, visual arts, video games, industrial design and furniture, and fashion.

• Initiatives for the promotion of CCI, developed by the creative and academic communities (festivals and exhibitions).

• Events that attract international attention, e.g. World Design Capital.

• Capacity of universities to concentrate and disseminate strategic information for this sector.

• Geographic situation, as a vehicle to position Tijuana as the gateway of the CCI into Latin America.

• Tijuana’s potential for the incubation of creative projects.

• The role of universities in accompanying the development of CCI.

Strengths Opportunities

• Economic and labor precariousness

• Limited access to calls for submissions and lack of familiarity with their processes

Weaknesses Threats

• Lack of unions and professional associations

• Snobbish perception of CCI

• Imbalance between a large number of creative professionals and a limited number of spaces for their projection

• Lack of specialists who study and promote CCI

• The economic potential of CCI is not evident

• Lack of intermediary mechanisms between creatives and the productive sector

• Lack of spaces for coworking

• Lack of communication within government and the discontinuity of policies between administrations

• Reduction of government support Rigid, complex, and bureaucratic tax framework

• Economic activities traditionally focused on the lower value links of the production chains

• Unexploded art market

• Lack of public policies focused on stimulating the creative economy

• Heterogeneous development among the different CCI

• Lack of tax incentives

• Lack of a joint development vision with shared goals

• Paternalistic culture (government dependency)

• Insufficient urban infrastructure, violence and insecurity

The main strengths of the sector were identified with two discussion groups made up of creative professionals. First and foremost, there is a significant concentration of creative talent in internationally recognized industries such as gastronomy and wine and craft beer production, but at the same time, talent can also be found in emerging industries like cinema, digital animation, music, visual arts, industrial design and furniture, video games, and fashion. In addition, the participants perceive a community that organically fosters collaborative and supportive ties and takes advantage of the flow of talent, knowledge, and culture that the border supplies, together with digital media capacities. In terms of opportunities, the participants identify various initiatives to promote CCI, put into place by the creative community and universities.

Universities are vital in promoting the development of the cultural and creative economy in the region, providing access to strategic information and analysis. Despite favorable conditions, the participants report a series of factors that inhibit the construction of an ecosystem around the CCI, including notably an increase in demand for jobs that cannot be filled, limited access to calls for submissions, and a lack of professional associations and intermediary mechanisms with the productive sector. Similarly, they highlighted threats that include a reduction of government support; a rigid, bureaucratic fiscal framework that lacks incentives; and the discontinuity of policies and strategies between public administrations.

This set of inhibiting factors, coupled with precarious economic and employment conditions for creative professionals, insufficient urban infrastructure, and a context of violence and insecurity in recent decades, makes it difficult to consolidate a cultural and creative ecosystem. However, an organic capacity to build supportive and affective ties within the creative community, together with cross-border market flows, stimulates knowledge, talent, technology, and culture, allowing us to uphold the vision of Tijuana as the gateway into Latin America for CCI.

SWOT analysis of women in CCI

• Greater proportion of qualified women in CCI.

• Strong participation of women as creators and academics in the field of CCI.

• Collaborative practices of women, and critical and inclusive feminism.

• Art as a way of life to deconstruct esthetic violence against women’s bodies.

• More aware, restless and empowered generations able to transform the industry.

• Movements that propose new identity profiles, as well as the recognition of women’s participation in the economy and culture.

• Incorporate humanistic, cultural, and artistic programs into upper secondary and higher education.

• Socially responsible companies demand the participation of more women in management positions.

• Promote pluralism and diversity from educational spaces.

• Educational spaces to transform society and encourage the development of women.

SWOT analysis of

women in CCI

• Economic and labor precariousness of women in the CCI.

• Low participation of women in cultural management, in public service, and in senior management.

• Significant asymmetry in the rate of economic participation between men and women.

• Artists and creatives lack training in entrepreneurship, administration, and business.

• Absence of public policies that stimulate the participation of women in the CCI.

• Lack of data that makes women’s participation in CCI visible.

• Lack of a regulatory and normative framework on gender parity.

Amenazas

• Rigid and bureaucratic tax. framework

• Imbalance between professional training and opportunities for women’s professional development.

• Perpetuation of the patriarchal culture by some segments of women.

• A pyramidal organization of institutions and work space prevails, to the detriment of women.

• Hermeticism and institutional rigidity that do not favor the gender perspective.

• The job insecurity of women in the CCI requires them to have a supportive family social structure.

Fortalezas Oportunidades

Análisis de las mujeres en las ICC

Strengths Opportunities

Weaknesses Threats

The reality of women’s participation in the CCI is similar to that observed in professional groups, but includes a number of additional, unique challenges. In short, women face increased economic and labor precariousness, and their participation is reduced when they seek to access higher positions in cultural management, public service, and companies, as remarked at the round-table discussion.

Similarly, the gap in the rate of economic participation between men and women persists, despite the fact that the proportion of professional women in the CCI and academic women is higher than that of men, as shown by the analysis of total employed personnel (TEP). Meanwhile, a deep-rooted patriarchal culture is one of the main threats, and one that is sometimes perpetuated by women themselves. In the same way, institutional hermeticism in the face of dialogues and reflections from a gender perspective remains a threat for women who work in the CCI, and for society in general. But this complex and multi-disadvantaged environment also raises some opportunities, mainly with the arrival of generations with a

greater awareness of the transformative power of women, and of art as a way of life that can reverse esthetic violence against women.

One other promising area of opportunity involves leveraging the capacity of educational spaces to promote pluralism and diversity, which may help begin to counteract gender asymmetries. Nonetheless, to achieve this, it is necessary to promote skills and tools for women’s autonomy, transforming institutions to level up access opportunities for women.

It is of crucial importance to generate data that helps to make visible the contributions of women to the economy and culture, as well as the inequity of the conditions faced by this segment of the population. Disseminating this information can be part of a process of raising awareness in society and among decision makers. This can lay the groundwork to design public policies that promote actions with gender perspectives to compensate for historical inequalities, through gender parity regulatory frameworks in public institutions and the private sector.

SWOT analysis of young creatives

• Plenty of academic institutions with CCI-related programs and a track record in the region.

• Growing student population within CCI Recognized industries (gastronomy, music, wine, and craft beer).

• Outreach programs for the arts for all education levels, provided by NGOs and cultural collectives.

• Cross-border links with independent institutions and projects.

• Border multiculturalism.

• New generations that are more collaborative, engaged, positive, technological, and global.

• Use of digital media as collaborative platforms.

• Emerging sectors (podcasts, radio, dance, video games, and TV).

• Interdisciplinary vision that favors collaboration between industries.

• Potential of digital media as democratizers of CCI.

• Alignment of academic programs with the industry value chain.

• Chaos of the city as a stimulus for creativity.

• University mechanisms to promote CCI (incubators, competitions, and programs).

• The potential of the maquiladora industry as a space for artistic and cultural expressions.

• Models and success stories in southern California as references.

• Perception of Tijuana as a seedbed of talent.

• Inadequate promotion of the CCI from basic education to university.

• Lack of management and business training for young creatives.

• Inadequate alignment between educational programs and the value chain of the CCI.

• Focus on talent over the rest of the production process.

• The CCI in Tijuana lack planning, organization, funding enhancement, and professionalization.

• Lack of unions or professional associations that provide support to young people.

• Fear and refusal to formalize their business or activities.

• Utilitarian approach to economics vs humanistic. approach

• Prominence of the maquiladora industry compared to value-added industries.

• Sector dispersion due to size and diversity.

• The conception of arts as a hobby, and not as an economic and professional activity.

• The dichotomous conception of the artist (star vs. failure).

• Limited government resources and lengthy bureaucratic processes.

• Budget cuts.

• Public and private organizations seek to incorporate young creatives into their activities, but for free.

• Impact of the pandemic on social skills.

In the case of youth participation in the CCI in Tijuana, the relationship between academia and industry has been critical in establishing the current conditions. In this regard, participants observe a gap between the academic programs of the universities and the different links of the value chain of the industry. This explains the focus of the academic programs on the development of creative talent, leaving aside training in highly relevant areas such as administration and business. This, in turn, makes it difficult for young creatives to visualize the economic potential of their professions, leading them to view CCI as informal activities that cannot provide a decent income without other complementary activities.

In addition to this lack of knowledge about the economic potential of CCI, the concerns of young people are fueled by a global economy that prioritizes a utilitarian over a cultural and humanistic approach, and this encourages young creatives to question the relevance of this type of profession. Likewise, the importance of the maquiladora industry in Tijuana relegates this type of higher value-added industry to a second plane.

On the other hand, another factor that makes it difficult for young people to join CCI is the size and diversity of the sector itself, which is made up of a wide range of industries, so the need for trade associations becomes urgent to provide support to students and young graduates. In the same way, budget cuts and limited access to resources are factors that work against young people and the entire creative economy.

Nevertheless, young creatives in Tijuana also benefit from conditions that help cushion the impact of these challenges. For example, Tijuana has many academic institutions that offer programs related to CCI, which has led to a growing student population and the emergence of a new conscious, collaborative, cosmopolitan, and technological generation, which takes advantage of cross-border links with independent institutions or projects and looks to success stories in southern California as a reference.

One example of this is craft beer, which came to Baja California on the back of a movement that began in San Diego. Emerging sectors identified include the

production of podcasts, radio, dance, video games, and television. Finally, one factor that motivates young people to enter this economy is the chaos of the city, which they perceive as a stimulus for creativity and innovation, together with the perception of Tijuana as a melting pot of cultures and a seedbed of talent.

Conclusions

Between April and May 2022, around 200 companies or independent agents answered the instruments that were disseminated electronically. The results of all the surveys of creative professionals in Tijuana enabled us to identify prominent sectors based on their share of CCI. In first place are activities inherently associated with culture: performing arts and shows, and visual and plastic arts, at 18% each.

Audiovisual production is notable in second place, at 14%, and music production and promotion comes in third, as does marketing, both accounting for 8% of CCI. They are followed by digital creative services; graphic, digital or 3D design; and support services for CCI, all at 7%. Finally, a lower share of CCI is taken up by architecture at 5%, fashion at 4%, handicrafts at 3%, gastronomy and beverage production at 2%, and mechanical and electronic design at 2%.

The challenge inherent to the study of CCI, which by definition are divided between several sectors of the economy, lies in covering the variety of branches or activities that they encompass. In this sense, it is considered that the sectors with the lowest participation respond to economic dynamics that are perceived in other areas of the economy – for instance, mechanical and electronic design responds to dynamics within industrial activities or the construction industry, although this study also identified architectural design services within the CCI. Specific studies have also been carried out on sectors such as gastronomy and beverage production; tourism promotion agencies and the restaurant industry have even created directories of services and establishments in the field. All this shows the dynamism of CCI- associated activities in Tijuana.

The cultural and creative industries contribute to the economic promotion of the area and generate value and production chains, and for this they need to synergize with the factors of production, including human capital. According to the Economic Census (INEGI, 2019), the creative industries account for 5.3% of the total gross production and 8.6% of the total employed personnel in Baja California, which translates into more than 89,000 jobs. They also generate 5.8% of the gross census value added, which represents more than 7.6 billion pesos per year and almost 3 billion pesos in remuneration.

These data do not consider the impact of the COVID-19 pandemic, since they were collected before the 2020 health emergency declaration. Given the size of the economic units we identified, with the majority being self-employed professionals, followed by small companies that offer services, it is necessary to support

their growth, both because of the rich nature of the content that they offer and because of the potential for economic development. The COVID-19 mitigation strategies played out in different ways depending on the nature of the CCI. For example, the performing arts and shows, visual and plastic arts, and music promotion, as well as handicrafts and design and fashion sectors, traditionally depend on in-person events or activities to exhibit creations, and were heavily affected; other sectors were able to continue to operate more or less normally due to their strong reliance on digital technologies.

In the pandemic hiatus, traditional CCI devised ways to continue creating and remain in contact with their audiences, largely through technological mediation and by programming online events or designing applications to offer their services hand in hand with programmers and marketers. This field is therefore believed to offer enormous potential, by combining expanded advertising with live events.

Finally, the digital technology and intellectual property aspects, together with the added value provided by the CCI, must be considered in the strategies implemented by the sector to seek to connect with international markets. In this vein, the road map defined by ProMéxico (2013) urges the promotion of content with an outlet on the digital screen, such as cinematography, animation, audiovisual development, advertising, multimedia, electronic learning (e-learning), and video games. With this, digital creative services and support services will be able to shore up even further the development of cultural and creative industries.

Agradecimientos

Emprendimiento

Coordinación

Flavio Olivieri / Eduardo Durazo / Mayer Cabrera

Personas Creativas Profesionales

Rachel Lozano

David Peguero

Ariosto Manrique

Claudia Basurto

Coordinación

Jofras/ Ingrid Kuri /Creta Cota

Armando García Orso

Javier Espinoza

Miriam Bautista

Norma Iglesias

Adolfo Madera

Yahir Hernández

Personas Jóvenes Creativas

Coordinación

Eduardo Durazo / Mayer Cabrera / Creta Cota

Eduardo Lucatero

Ishiro Pérez

Arturo Elenes

Fernando Quirós

Mujeres Creativas

Marianna Escobedo

Eduardo Gurría

Samantha Luna

Christian Zúñiga

Aleyda Acuña

Edna García

Osiris Fernández

Coordinación

Jofras / Ingrid Kuri

Isabel Salinas

Jud Hernández

Dulce Escobedo

Alita Escobedo

Miroslava Wilson

Monserrat Sánchez

Ana de Gurría

Victoria Zepeda

2 Roadmap to Venture and Escalate in Cultural and Creative Industries

Index

Macedo Cham Consultores

Authorship

Karla Fernanda Macedo Cham Coordination and design of the Entrepreneurial Handbook

Lizeth Castillo Navarrete, Karla Fernanda Macedo Cham Co-authors

Priscila Gerardo Peralta Research and Interviews Coordination

Alma Guadalupe Cham Kimsam

Proofreading

Pablo Seol García

Roadmaps Infographics Design

Marisa López Paredes

Handbook's Translation

Nancy Luna/Smart Translation

Annexes and Roadmaps Translation

Pablo Seol García

Infographics Design

• Background

• Introduction

What Are the Contents of this Manual?

Who Can Benefit from This Manual?

How to Use this Manual

Am I an Entrepreneurial Entrepreneur?

• How Do I Venture in CCIs?

The Entrepreneur’s Guide: ROADMAP

The Success Triad

Zooming into the Roadmap

Roadmap: 10 steps to become an entrepreneur

Steps and Considerations to Achieve Scalability

The Scalability Model of Audiovisual Media

Examples and Success Stories for Scalability

Examples and Success Stories for Scalability

• References

• Special Collaborations

• Acknowledgments

• Glossary

• Credits

• Annexes

1. Success Triad Checklist .(QR1)

2. What Do I Need to Know about CCIs and The Entrepreneurial Ecosystem in Tijuana? (QR2)

3. Step by Step Business Model (QR3)

4. Basic Guide to Manage Copyrights and Intellectual Property Rightsl (QR4).

5. From One Creative Mind to Another: Earthly Steps to Show Sublime Creativity (QR5).

6. Roadmap para emprender. 10 pasos .(QR6)

7. Roadmap to Scale. 10 steps .(QR7)

8. Scalability Model (QR8).

• Autoría

• QRs

Background

Tuana Innovadora (TI) (QR9) has been an economic development promoter in the city of Tuana through the continuous work of professional collaborators committed to the cause. Since 2010, these collaborators have synergized to coordinate activities that will promote and trigger the strengths of the city. Nowadays, TI is managing actions to positively and purposely impact the educational, cultural, social, entrepreneurial, and sustainable sectors.

Together with the Center for International Private, known as, México: Fostering a Democratic Culture by Addressing Citizen Insecurity and Encouraging Youth

Entrepreneurship and Civic Participation, Tuana Innovadora has developed a project called ¨Roadmap Design for the Scalability of Economic Activities (Audiovisual Media) of Cultural and Creative Industries.

To execute the Roadmap Design project, during the month of June of 2022, Tuana Innovadora conducted a bid for consulting services, where Macedo Cham Consultores was evaluated and selected by the Consultive Collective:, Arte, Cultura e Industrias Creativas (Art, Culture, and Creative Industries) of Tuana Innovadora

The aforementioned deliverable Roadmap project serves the following purposes:

1.That the roadmap will be a guide that will provide actions and resources for young entrepreneurs, professional agents, and decision makers that wish to participate and improve the results of the creative industry.

That the roadmap will be an input so that the members of the ecosystem 2. will make better decisions to benefit the economic growth of the creative industry.

That the roadmap is a guide for high potential entrepreneurs who wish 3. to “scale” their business models.

The consulting team, through interviews with key role players in the research ecosystem (entrepreneurs, business people, directors of educational institutions, public servants, and consultants) and by consulting a series of references relevant to the CCIs and success stories, as well as through the more than 30 year experience in the entrepreneurial world and more than 10 years in the business ecosystem, has developed the

present Entrepreneur's Manual called ¨ Roadmap to Set Up a Business in the Cultural and Creative Industries¨.

This manual was delivered to Tuana Innovadora during the first week of the month of August of the year 2022, with the purpose of it being shared with the Entrepreneurial Ecosystem of the CCIs and with that potentialize the success of the entrepreneurial projects of the CCIs.

Introduction

WhatAretheContentsofthisManual?

This manual is intended to be a guide and a tool box so that you as an entrepreneur who has an idea for a business in the CCIs are able to increase up to 70% the chances for success (that you are able to survive the first year of operations, year in which 90% of all businesses subside) and also that you as an entrepreneur are able to increase the potential for success of the first 4 years of life of the company (that you are able to survive the death valley* where approximately in the third or fourth year another 40% of companies die in Mexico).

The team of authors will share in this manual the answers to three questions that more likely you have asked yourself: Am I an entrepreneur? What do I need to know when starting up a business? How can I set up a business in the CCIs?

You will find specific answers to these questions in this manual, as well as references if you wish to explore and

get more information regarding the context of the CCIs and of the business and entrepreneurial worlds.

If this is your first attempt to set up your business, this manual contains a ROADMAP to set up a business with a high probability of success. Do not start up on your own. This ROADMAP will tell you how to create a more convenient environment for you, and it will also tell you the available resources for you in the entrepreneurial ecosystem in Tuana

If you already have entrepreneurial experience, we will be sharing a model, along with some good practices to achieve scalability Become more acquainted with the references of business models with a high scalability factor. You will find in this manual some success stories and references, as well as the description and components of a scalable business model.

WhoCanBenefitfromthisManual?

This manual has been written thinking about you, the CCI entrepreneur and/or professional, so that in a summarized way you will have access to valuable information to create a favorable ecosystem to set up a business, and to be able to take the necessary steps to become an entrepreneur.

It is important to mention that, in general, this manual contains a ROADMAP that can be applied by any entrepreneur or business owner of any industry. Also, it will present valuable information for all the key role players in the ICC entrepreneurial ecosystem, who are interested in articulating to potentialize the VALUE of the industry in Tuana.

Likewise, this manual is for all those who have 6-7 years of entrepreneurial experience, some failures, and at least one success in the market; and whose heads have not stopped thinking about the formula to ¨scale¨.

Call to action:

9 out of 10 business ventures in Mexico subside within their first year of starting operations. If you don't wish to become part of these figures, put the ROADMAP in practice and follow the path of other high potential entrepreneurs. Become that 1 out of every 10 who succeeds in their first year of operations.

Let's change those figures!

How to Use this Manual?

1. Download the ROADMAP infographic.

2. Read the Success Triad in Annex 3.

3. Print several copies of the roadmap (download the tabloid size version printout) and share it with your (QR10) fellow entrepreneurs. NB: if you are unable to find their support, look for others who are willing to discuss your ideas. Always remember that if they say you are crazy or if you feel like a fish out of water, then it means you are doing things right!

6. Once you become an entrepreneur, your ROADMAP will still be useful to continue setting up your business. By trial and error, as well as becoming successful, your fears will start disappearing and you will understand better that failure is key in the process and road to success.

NB: these steps are described in Annex 3 of this manual.

5. Put the ROADMAP to practice

• Understand the formula to success.

• Take the first step (then the second,

and then the third)

• Manage your resources and,

• LIVE the experience of becoming an

4. Zoom in on the ROADMAP and analyze each step. We suggest 10 steps to set up a business in the CCIs and increase by 70% your success rate entrepreneur.

Once you have acquired the professional experience, consider “scaling” your business. We suggest considering the model and steps contained in this manual to “scale”. Try, try, and try again until you achieve it. Info: in Silicon Valley, the average age for entrepreneurial success is between 37 and 40 years of age, and by the third or fourth attempt. Therefore, don't despair, what you are required to have in Mexico in order to succeed is lots of patience.

7. Get things right, and when you consider that you have understood how to incubate and mature a business, strive for scalability. Keep in mind that if it was an obstacle course to set up and mature your business in order to get to the third or fourth year, after that it will become even more complex: to make teams and get funding to survive the death valley of the fourth to sixth years) but wait! The best is yet to come, once you try to start SCALING!

If you are an entrepreneur, we recommend studying the Scalability Model shared in Annex 4.

(Para mayor información sobre escalabilidad, favor de verificar el Cap. 3. Nota de edición)

BACK TO BASICS

Many times, a life experience will hinder us from generating new ideas, just like the ¨comfort¨ of doing well. There is a quote that says ¨the worst thing that could happen is that you do well, because after that you will do even better¨. Go back to basics, to the obvious. Don't be so arrogant as to think: ¨you already know that…¨.

From the of the magician More conference (QR11)

¨Can you believe that after 30 years of research we always get it right in the last attempt? This is a great quote from my friend Eduardo Anitua who has a Biotechnology company¨

You cant remain second to last, you have to make that one last attempt in order to GET IT RIGHT!

Am I an Entrepreneurial Entrepreneur?

To set up means ¨to make things happen¨; therefore, an entrepreneur is a person who makes things happen

The fact that each one of us “exists” means that we were able to be born, so our birth was our first and greatest venture.

Each and every single person in this world has an amazing entrepreneurial potential. We have the capacity to materialize our ideas, our dreams. That's why it is so important to imagine, visualize, and dream

“All things are created twice. There's always a mental

or first creation, and a physical or second creation to all things.” Stephen Covey.

We can set up a soccer team at school, organize a trip between friends, a business idea, an air quality campaign. However, the entrepreneurial population in the world, only 1% approximately, has the profile to set up a business. That is, you are an entrepreneurial entrepreneur if ¨you will be able to make a business happen¨ and if that is the case, you are welcome to continue reading.

According to the Global Entrepreneurship Monitor (GEM), if you decide to venture in the entrepreneurial path, you are part of a pretty important worldwide group. GEM interviewed 65 different global economies and discovered that the entrepreneurial spirit is alive and well, with an estimated 582 million entrepreneurs living all over the world.

Another recent study conducted by the GEM found that 40% of all new entrepreneurs in 35 out of 50 countries partially agree or completely agree that their motivation to set up a business is wanting to make a difference in the world. ( The Definite Entrepreneur's Source: (QR12) Statistics 2022)

Why do people set up a business?

When dealing with the 'why' people want to become entrepreneurs, a report from Guidant Financial found that 26% of the people interviewed wanted to be their own boss. Another 23% said that they wanted to pursue their dreams, whereas only 19% stated that they saw an opportunity and that was their motivation. Finally an even smaller percentage, 6% started their own business because they had lost their jobs

As an entrepreneurial entrepreneur, we recommend that you get a tool box and a guide on how to apply those tools.

Keep reading; coming up, the ROADMAP to venture in CCIs.

Why are you interested in setting up a business?

What is your motivation?

If you have a clear answer to these questions, CONGRATULATIONS! It is very important to connect the motivation, since as we will be reading in the Success Triad, motivation feeds the commitment and dedication of your venture (commitment is key one of the three elements to being successful). If you haven't defined the reasons, it would be important to allocate some time to connect and discover your motivation to start venturing. Simon Sinek will tell you START with WHY! (QR13)

If you have come to the conclusion that you are in fact an entrepreneurial entrepreneur, acknowledge your motivation, it will become your energy source and will to keep on track.

(Canvas: Read Oster Walder, Steve Blank)

The Success Triad

Just as we mentioned previously, in Mexico 9 out of every 10 companies die within their first year of operation. However, the death rate of entrepreneurial ventures does not have to be so high. The objective of this manual is to increase the number of companies that are successful.

In Mexico, we need better ventures. Not more, just better. We need superior companies that will survive and become high impact companies.

For more than 30 years we have been participating as consultants for private companies, universities, and in the public sector in projects whose objectives are to make their processes more ecient. We have seen the teams and their leaders in these organizations working towards reaching their goals. We have seen some failures, and we have seen others reach their objectives effectively

But at the end we always ask ourselves the same question… What makes the difference? Why only a few reach their goals? Why are some companies successful and others fail? Is there any sort of formula for success?

As we have worked with these companies, we have been able to find many answers. We discovered that there is no magic formula to become successful overnight. We have interviewed entrepreneurs and business owners that are considered to be successful, who have confirmed that there are many hours of practice invested and that you need to have a great leader for a team that shares the same dream, the same idea, and the same passion.

From the success story interviews that we conducted for this ROADMAP, as well as from the many others that we have conducted in other companies that we have collaborated with previously, we found that companies that have achieved great success do not share the same guide, nor follow the same steps. However, there are 3 common elements present that make them different and successful.

We will present in this Chapter these 3 elements that we have called the Success Triad: Knowledge, Capabilities, Attitude, entrepreneurial success formula.

The Success Triad.

If we want to talk about a method to become successful, we first need to define what success is. Dictionaries give us many definitions and they all agree in using words such as money, achievement, recognition, but the meaning is not very clear, and there is no universal definition. The answer is inside each one of us. Every entrepreneur, every leader, every team, has its own definition and idea of what success is. For some, it means creating its own vision of life, for others it means to obtain a benefit for the community, etc. However, once they have a clear definition, they are able to establish goals, achievements, and take the first steps to obtain it.

Many times you will have to deal with failure along the way, and you will have to acknowledge that. Writer Andrés Oppenheimer, in his book Crear o morir wrote: “In the culture of innovation, failure is seen with good eyes; someone who has failed many times, learned much more than a person who hasn´t failed in his life. That is not only tolerated, but it is rather valued”. He mentions cases such as Henry Ford´s, creator of the car produced in series. “He named his first car Ford T because before that he had 19 failed attempts.” This well-known journalist invites us to “stop crucifying those who fail, because failure is a necessary and essential step in development”.

Emotions aside, we have to embrace failure, capitalize knowledge and move forward. At the end of the day we have to transit from opportunities and findings, to prevent errors from happening and repeating our successes the following day. That is how you develop companies who achieve success.

In an interview, , a well- Marco Miranda (QR15) known painter, shared that for him success had meant that he was able to decide on his TIME; to be the owner of his own schedule Success for Guillermo del Toro (QR16):¨to get where you want to get to, doing what you want¨

The entrepreneurs that we have studied and that are considered successful have many things in common:

Each one of them, in a very particular way, has his own definition of success and is considered successful. None of them consider that they have reached the end of the road. They all agree that at a certain point in life they decided to dedicate 100% of their time to their project, give in to their passion, and focus. They did not stop feeling passionate about what they do, and discovered that entrepreneurship is their life.

They are great dreamers. They all continue searching for more than just a mere personal satisfaction, and have a huge motivation: to pursue their dreams. In every interview we hear them talking about their dreams with a passion.

For them, money is just the means, an indicator. There is no stigma, that is, that money is not sinful and it helps them along the road, because there is no guilt every time they visualize the profit goal they wish to reach.

They know their business, they know their sales result, market participation, who, and how they are competing, why and for whom they are doing what they do, among many other things about their business.

They know where they are standing, and where they want to go. Each one of the business owners recognized being clear on what they want to achieve.

They are great observers of their surroundings, they understand the trends and their proposals are aligned to the opportunities and challenges that may arise

They all dedicated around 5 to 10 years to working, making their way, getting up and continuing learning until the time came when they considered that success started to appear, regardless of the satisfaction they had experienced because of their decisions and results.

Most of them talked about having a mentor as a significant person in their initial stages and in the times when they required validation and trusting their decisions. In fact, they always seek the opinion of experts, whether they are other business owners like them, or specialized consultants.

They all recognized the value of their collaborators to reach company growth and to be able to dedicate time to strategize and to their hobbies.

They have all repeated a process of envisioning, practicing, failing, trying again, and professionalizing.

They have learned from their failures. That is a constant factor since they do not assume that success is guaranteed.

They don´t stop researching, learning, reading, finding out about new trends, and being up to date

Knowledge, Capabilities, and Attitude, these are the common elements. Steve Jobs, Michael Jordan, Simon Sinek, were not born being geniuses or with the perfect conditions given. They appropriated their vision of success and they gave in to make it a reality. Even those who had guaranteed success because of an inherited circumstance, have also been able to maintain and even improve their companies because they have all the weight on their shoulders of past generations. There are even others, who are the exception to the rule because they represent a third generation of successful entrepreneurs and have many years to go.

Knowledge.

Represents the vision of the place where I want to get to and the success I want to achieve. It is about setting goals and objectives that are challenging. The starting point is to answer questions such as: What moves me? Where do I want to get to? What does success mean to me? In some entrepreneurs, the process of establishing their goals is more conscious and faster than others. However, there is forcefulness every time they make the first step. The personal revelation of success comes indicating that we are ready to venture. The clarity of the dream fills the soul with conviction for the road that will require persistence. Knowledge means to acknowledge that it will be a long road, but that you are willing to travel it and that it will be that road which will give you the hours of practice that will translate into skills. It is not only about having the desire and the passion of becoming a great painter, but rather having the capabilities to be one.

Writer Malcom Gladwell shared in his book called Outliers. The story of success, that geniuses, at the time they were labeled as one, had approximately 10,000 hours of accumulated practice. This means that if you invest 40 hours per week, in 5 years you will be able to have the skill-experience to be skillful. It doesn´t mean that this time will be the rule for success, but definitely the competency that is developed with practice is a requirement. You cannot intend to be successful if you don´t venture with vision and develop skills.

Capabilities.

Stephen Covey, author of The 7 Habits of Highly Effective People (QR17), said that things are created twice, the first one in people's minds, and the second one in reality. To achieve a vision that will transform into a reality, you require financial resources and human materials. They are all important and necessary. However, it is important to mention that successful entrepreneurs insist that obtaining the financial resources is not the obstacle or the most dicult part of setting up a business. The most relevant element is an effective work team. The development of , association. To “win-win” (QR18) look for and find that right arm that will share your dreams, complements your talents; that is a constant task.

Good ideas and money are everywhere, but good teams are not. We have heard from investors who say: “Give a good idea to a bad team and they will wreck it to pieces; give a bad idea to a good team and they will transform it”. Nowadays, an investor will not bet on the potential of an idea, but rather on the team potential. The integration of a good work team is a basic requirement for venturing. Currently, orchestra directors have very few probabilities for success. It is easier to cover our deficiencies by using experts than wanting to know everything, or what is worse, wanting to do everything. Key roles in a business must be done by at least three people: a person responsible for selling-generating alliances, the one responsible for managing the business, and a person responsible for the product, its production and its continuous improvement.

Attitude.

Attitude is a matter of wanting, an honest commitment with oneself. High impact entrepreneurs are daring, willing to do whatever it takes to achieve their goals. It means deciding where they are going to place their energy and talent, and focus on that. One thing at a time. Once a woman approached the flamenco guitar player Paco de Lucía and told him: “Paco, I´d be willing to sacrifice my life to be able to play like you” and Paco de Lucía responded: “That is exactly what I did, I sacrificed my life to play like this.”

ATTITUDE is for an entrepreneur to willingly surrender to achieving his goals, and it is that passion that will make him get up, make the first step, and obtain the hours of experience.

The Success Triad is an opportunity to reflect on the potential for success that your company will have. For that reason, you need to ask yourself this:

1. DO I KNOW? Do I have a personal definition of success? Have I appropriated my vision of success? Is it clear why I do what I do, where I am, and where I want to get to? How many hours of practice do I have already to be successful? Do I have the necessary talent and Capabilities?

2. CAN I? Do I have the team of collaborators that my venture requires? Do I have the resources that my company needs?

3. DO I WANT TO? Am I willing to give my 100%? Are my collaborators willing to put in their effort together with me?

It is said that success is 1% inspiration and 99% perspiration. Behind every great company, there is someone who made the decision. Most likely he failed many times, but knowledge made him get up even faster every time

In 2006, the record time of 3.4 seconds to change all 4 tires in the was The Formula 1 Ferrari pits (QR19) achieved by a great team of men who were coordinated and knew their objectives, they had the ability to carry out their tasks, and were very committed. Leadership and teamwork is not a romantic matter: it is a skill that is developed when a person understands that the amazing 3.4 seconds=effectiveness, and are a result of the KNOWLEDGE-CAPABILITIES-ATTITUDE triad of the team.

Putting into practice the KnowledgeCapabilities-Attitude continuous improvement leads to incredible results! In 2019 they were able to reach the record time of 1.82 seconds (QR20)

at the pits.

A leader is a person that makes sure that each one of the collaborators knows what the goal is and that they KNOW what their position is. A leader practices every move with his collaborators to make sure that they master what they have to do and continues until each one of the members of the team acts autonomously. A leader as a resource manager, recognizes that the 3.4 second goal requires tools, information, and procedure: Capabilities.

Attitude is equal to commitment. The reason for being in a team is important for the leader because it will allow him to evaluate if the motivation will remain in each one of the collaborators. A person who knows, can, and wants to do things inspires trust, and that is the value of a leader who consolidates a team where each member trusts himself and others.

Considerations

Nowadays, there are considerations that can guide us to build our own venture.

A high impact venture is a matter of profit, lots of profit where we must work with company goals and not regarding the amount of money that the owner needs to live.

A high impact venture is a company with high profit and a business model that transforms its ecosystem and positively influences and inspires the next generation

We now need to focus our entrepreneurship to specific needs in a market niche. Listen to the market, approach the needs that your future clients WANT to fulfill.

A value proposition must present a Scalable and Replicable Business Model, in other words, to have the potential to grow and replicate in different markets. A Business Model is the opportunity for an entrepreneurial entrepreneur to validate if his proposal is WANTED by the client, if there are channels to get to that niche, if it is feasible due to regulations and environmental conditions, if the competition is large or if it's loyal or unloyal. Likewise, it is necessary to know if you have the key people to venture (in clear and agreed upon terms between both parties, with common values and expectations).

We must consider scalability in the business model.

We are at a moment where it is necessary to understand that we need to go out and have a high impact venture as a VISION. NB: even though my entrepreneurship is not born with a potential to scale, my vision as an entrepreneur must be at a given moment, to be able to¨scale¨.

It is true that in Mexico 9 out of 10 business die within their first year of operations. However, it is also true that there is one that survives and is successful. These success stories are the ones that we need to study and have as references. Success is a decision. Let's become part of that high impact venture statistic

Just as in the Formula 1 example, a venture in any economic activity in CCIs applies to the Success Triad. A painter requires knowing a technique (practice hours to dominate a technique and to develop a talent), he is required to know how and where he wants to get to, he has to define a business model to generate profit, requires CAPABILITIES (canvas, brushes, resources to participate in calls for paintings, etc., and continue developing) and ATTITUDE (to have the will to stay on the way to reaching a goal). Alejandra Phelts (the first woman from Baja California to showcase her work at the Soumaya Museum in Mexico City, and at the Louvre Museum in Paris, among other international museums), was telling us that she thought that to be an international artist was only for those who had been born in New York or Paris, not in Baja California. She worked on “believing it”, in making teams, knocking on doors and more than 10 years of practicing before her first international exhibit.

How many hours of practical experience are required to be considered a member of a team or to be able to lead a team in the videogames industry? What resources are required to be able to practice? Who do you need to relate with? Who will be your mentors? How many hours a day are required to commit to your dream?

Zooming into the Roadmap.

Roadmap: 10 Steps to Become an Entrepreneur:

STEP 1.

Analyze the Success Triad and define what success means to you.

In the Success Triad, the 3 common elements of entrepreneurs who are considered successful are Knowledge, Capabilities, and Attitude. The purpose of this reading is for you to assess if your thoughts and resources are the appropriate ones to venture, and if you have a clear definition of success and what you want to achieve when venturing.

STEP 2. Position yourself in your industry and in your entrepreneurial ecosystem.

Personal Reflection:

DO I KNOW? CAN I? DO I WANT TO?

SOLVING a problem for a market niche. Your product or service can be a “work of art” but if it is not useful for a client (does not make a headache go away, or provide a tangible benefit), this product or service will not be easy to generate the opportunity to GENERATE BUSINESS. NB: Let´s remember that I am starting a business with the purpose of generating profit, lots of profit. So the problem must be the market niche, which is not only in Tuana. The need is present in other parts of the country or of the world.

Think Global and Act Local. Identify a need that the world has, SOLVE a problem in the world.

venture in CCIs, we have the basic information that prepared a summary with

We are sharing with you a TedX video about the formula for success (from minute 5).

You, who are looking to a business in CCIs and about the entrepreneurial ecosystem in Tuana

Download Annex 1. Checklist of the Success Triad (QR21)

you need to know to start

In What do I need to know about CCIs and Annex 2. the entrepreneurial ecosystem in Tuana? you will find:

What CCIs are

Audiovisual media and the CDI.

• Findings, challenges and opportunities.

CCIs in the world and in Mexico

• Strategies to trigger the potential in

young entrepreneurs.

• Entrepreneurial ecosystem of CCIs in Tuana

Identify who is the one solving that headache and how they are solving it. In this moment don't think about the solution you would give (product or service); listen and connect with the problem, with the headache of the market. Analyze what is going on in the market. (QR23)

STEP 3.

Identify a need in a market niche.

Observe and observe again. Sit on a park bench, make a line in the bank, visit the waiting room in a hospital or in a restaurant. Practice observing and LISTENING: Are people complaining about something? Do you hear them talking about a desire or need? The first step to venture in a business is to be clear on the need that a market niche WANTS to cover. NB: it says WANTS. The market might need something, but if it doesn´t WANT it, it´s the same as if it didn´t need it.

What problem do you wish to solve? The (QR22) answer to this question will give way to an entrepreneurial venture. The opportunity of

we understand what the need is

Sometimes we think (a supermarket close to your home because you don’t have a lot

in his Fric Martínez (QR24) book Startupismo (QR25) mentions:

It is easier to identify a need (there are many) and generate a product/service to satisfy it, than to create a product/service and try to find a market for it.

to my client: his

of time), but when habits, his daily (I want to get home and have food to

If you can´t recognize a ¨headache or benefit¨ that you have heard that the client WANTS to eliminate or obtain… keep on OBSERVING and discover that headache

to understand what he really WANTS

prepare, I don’t want

commute, I am able the supermarket or get to my house to order from a store online, I just want to get home and have a full fridge). Once I understand the need, that is when GREAT OPPORTUNITIES appear.

Don’t try to CREATE

I observe and listen needs, DISCOVER THEM!

STEP 4.

Create a value proposition (product/service)

A value proposition is the solution to the ¨headache¨ that you have identified in the market, or that solution that provides a benefit. Propositions are classified in aspirins and vitamins. Value propositions are materialized in products and services. It validates that the product or service give the client what he wants. The following

video (QR27) explains in a very clear way the relevance of MATCHING the need with the client and the value proposition. Strategyzer shares a canvas to work with value propositions. (QR28)

Example of a . value proposition (QR29)

FOCUS!

A market niche and a value proposition.

Don’t make the mistake at the beginning to think that:

• My market is the same as that of my family and friends. NB: not because you asked your family and they told you they do drink coffee in the morning, it will mean that there is a market for your cup of coffee.

• My market is men and women between 20-60 years of age. NO! not because men and women between the ages of 20 to 60 like to drink coffee in the morning, they[re all going to be your customers.

• Identify a niche. STRATIFY and focus your value proposition to this niche

Don’t try to sell your audience more that one product or service. Be very clear on the solution you wish to offer so that there are no misconceptions. Once you consolidate your first business model, then you can start with another product or service. NB: think about UBER. They first started with a very clear value proposition: executive taxi service (security and traceability), much later came UBER EATS (food from your favorite place sent directly to your home). If both options had come out at the same time, it would have been more services and grow

dicult to both. It is better to start with one and

communicate both then the other.

STEP 5. Organize your ideas in a business model canvas and define how you will make money.

To organize all of your ideas and hypotheses for your business idea, it is VERY recommendable that you follow the Business Model methodology. The most popular one is the , or you Canvas (QR31) can always use the format contained in Annex 3 (QR32) which is a more detailed BMM document.

Business Model is a document that will contain the “way in which your business is business”. BMM is a methodology that you follow to validate your hypotheses regarding the success that your business idea may have.

A BMM will allow you to analyze if your idea will be successful in the market, if your idea has potential to be profitable and to become an innovative company.

It is important that your BMM has a scalability factor and that it is replicable.

We are going to share with you the Lean Mx Canvas (Canvas for Mexicans) from the (QR33) book “Emprende en México” (Venturing in Mexico).

The Business Model design is basic for venturing. If you don’t design, test, discard, and design your BMM until you validate it, you are missing out on the opportunity to venture cheaper, failing cheaper, and understanding how you will be making a business.

NB: listen to OSTERWALDER (QR34), the creator of the “Business Canvas, Why Design your Business Model?”.

If you don’t want to pay for a workshop with guides or mentors to design your BMM, it is highly recommendable that you watch the Steve Blanc videos on youtube com where he explains step by step how to design your BMM (video 1) or take his free online course on udacity.com

NB: remember that designing and validating and your BMM will increase by 30% your success potential when venturing.

Watch the following video from the Limo Mix in Shark Tank (QR30) pitch. Analyze the clarity of the value proposition and later how the SHARKS give suggestions to add¨values¨ to the current product that could affect or distort the message to the customer.

STEP 6.

Validate your ideas and hypothesis (design a minimum viable product).

STEP AWAY FROM YOUR DESK

Test your hypothesis: I have a super product in my hands! This service will be a success in this market niche! It is going to sell off the shelves! It has an excellent location and the lease is great to start!: WRONG!

Validate, validate, and validate

Confirm each element in your canvas and generate evidence that your hypothesis is true. Before requesting an investment or purchasing the equipment or the license that your venture requires, design a minimum viable product (QR35) and reach out to the market. FAIL!

The MVP does not refer to a “scale sized model”, it refers to a “way” in which you can go out and sell and bring information (QR36) to adjust your BMM.

If you are thinking about selling an online training platform for programmers, I don’t need to develop the platform to go out and sell. An MVP (QR37) could be a landing page to launch, with a demo of the courses and memberships with an irresistible discount for the first 1000 who sign up. Design a strategy on social media that is aimed at the target market niche and validate if with the demo and the advertising, you will have the clicks to the landing page and the discount request. If nobody signs up, it means there is no match between the market niche and the value proposition (market fit) so it will be necessary to adjust the proposition to the niche (pivot).

If you got people who signed up, congratulations! develop the platform and the programs, you will have clients!

After selling to the client, you will discover what they do and what they don’t want, how much they are willing to pay, how they would like to get to the product, and if they would buy it again. Watch out! don’t make a survey where you ask Would you buy it? Would you go? Would you use it? Many will say that they would buy it, but it doesn’t necessarily mean they will.

Sell to them!

Do you want it? Do you buy it? Are you interested? Do I bring it to you for X Pesos?

The only people who will respond are those who are willing to pay you. That is evidence:

% of people who bought from you.

STEP 7. Go out and sell and if you do sell…

You don’t need to have the company to go out and sell, it is necessary to have a sales pitch, a portafolio, a web page, or a business card (or the entire sales kit).

Don’t invest in anything beyond your basic sales kit, before you have any sales. If you are already selling OPEN UP YOUR COMPANY! VENTURE!

Define and rehearse your venture’s PITCH and also about who you are. You can’t imagine the times when you will be next to your potential client, partner, investor, supplier, ally or collaborator; and the great opportunity that you have when striking a HIT when they ask you the question: What do you do for a living? What is your business idea? How can I help you?

Don't waste a great opportunity to obtain what you have (QR38) been searching for so long. We recommend analyzing the Elevator PITCH and describing your business idea in 15 (QR39) to 30 seconds tops. We know that you are very creative. Take advantage of that talent to create a convincing pitch that achieves the call to action that you have established. However, practice your pitch yourself and with other people and make it better every time

STEP 8. START UP a business and become an entrepreneur

According to your BMM consult a recommended accountant, that you have confirmed has a good reputation in the market and can provide you with his accounting services. Before you start with the process, find out about the steps you need to take to register your business and start operating. NB: if you are already operating log on to the Instituto del Emprendedor de Baja California website and check out all the resources that could apply to your business.

Consider the following good practices:

1. Design and revise your business model at least once a year (post pandemic, at least every 6 months).

2. Connect with a vision of you and your business at a 3 year term. Travel in time and visualize who you are talking to, your ideal day, how you feel, what is being said about your product, what is being said about your services, how you see your collaborators, the operation of your company, what value does your brand have in the community, what you have achieved through your venture…

When you open your eyes, write in present tense all of your VISION. Don’t limit yourself, write and write everything that you see. This document will be the MANIFESTO of your VISION.

We recommend that you do the envisioning exercise as proposed by Cameron Herold in his book . Envisioning is the Vivid Vision (QR40) first conceptualization of who you wish to be and how you wish your business to be

3. BEING RELIABLE. Create an identity of someone who is “reliable”. Remember that trust is the effect of complying with what was agreed. If you commit to arrive at a certain hour, or deliver a project, or send an email, DO IT. When you arrive on time, turn in the project, or send the email that you promised to send, the other person acknowledges that you

are a person who does what he promised and trust begins to form. NB: trust is not given because of the relationship or time you have known another person. You may love him very much or have known him for a long time, but because you know that person, you know he never arrives on time and you don’t trust him.

Consider that the reputation of being “reliable” that you begin having in your network, will be the entry pass to keeping your ally network loyal and will grow with time

Share your vision with your employees, with your clients, with your ally network, and commit to them to achieve everything you have envisioned!

4. PLAYING following the RULES OF THE GAME.

Start to understand the written and unwritten rules of the industry that you belong to. What is accustomed when delivering a proposal? If someone brings a new client, do they get a finder’s fee? What conducts are ethical in your sector or profession? How is the work relationship with your suppliers? What does the competition do to generate loyalty with the clients? You don’t need to be an accounting expert, but what is the best fiscal regime for your commercial activity? Do you already have an accountant that can help you with compliance issues with your fiscal obligations? Do you have a consultant on intellectual property management? What rights do you have over a piece that you sold to a client? Can you include in your portfolio one of your “pieces” without the consent of a customer who already paid for it? Ask your allies if you need to answer any of these questions. Ask your mentors if anything is not clear. You don’t have to have any questions. Ask yourself these questions. Sooner or later you will have to answer them and it is better to do it now before it’s too late (you had a bad experience with a client, a collaborator went with the competition, they stopped recommending you, etc.) Don’t surprise yourself with an.. “I didn’t know that”, especially when there are many people in your community who have more mileage than you and who are willing to guide you.

STEP 9. Manage Resources

Basic Resources for the Entrepreneur.

• MENTORS.

• TEAM OF COLLABORATORS

• ALLY NETWORK.

• INVESTMENT

The opening of the company (step 8) and resource management (step 9) can be parallel steps once you have decided to VENTURE into your company. NB: even some of the resources you most likely have been capitalizing on them since the first steps of the ROADMAP. You must have them all by now.

MENTORS.

Who or whom are your mentors? You may consider someone within your creative community, who already has a career and who you trust and admire to call him in the middle of the night and share with him that idea that has been keeping you awake. NB: consider someone within your commercial activity, or your discipline or at least someone who has ventured into a business in the industry that inspires you. Take advantage of virtuality and you can also have a mentor in another city or country. You might be willing to pay for an hour of consultation fees from someone who can make things much easier (whether with a key that opens a door, with a shorter roadmap than yours, some advice, or maybe a question that will make you understand all your panorama).

Remember that a Mentor is someone who has a lot of expertise, and most likely has a very tight schedule, but still don’t hesitate to ask for support. They are always willing to give you an hour of their time to guide you. Be persistent (they also received some kind of mentorship in their first ventures and surely they still do, so it is some sort of paying it forward that you will also do with the new generations once you are a mature entrepreneur).

From the book ¨One Minute Manager¨ by Ken Blanchard, here are some good

• Relate with people whom you admire and from whom you can learn something.

• Carry a notebook where you write down the knowledge you read, listen to, and learn. Summarize your notes.

• A good life is built over strong and solid values such as integrity, love, honesty, and dedication to work.

• You never need to cheat to win

• It is more important to know what is right, than to know who is right.

• Ambition is the fuel that triggers the situations that produce definite changes in your life.

• Don’t be afraid to dream big.

• Success is obtained when opportunity meets preparation.

• What counts is not who we know, but rather who knows us and what they think about us.

We suggest visiting the CCI Directory Tuana and research directories from (QR41) other ecosystems that will allow you to get to your mentors.

TEAM OF COLLABORATORS

Our experience in the entrepreneurial and business ecosystems, as well as the research we’ve conducted on entrepreneurs, high potential business owners, and high performance teams, have allowed us to identify 3 types of entrepreneur profiles:

Salesperson. The entrepreneur who “challenges” status quo. This profile loves to observe, explore, and socialize. For them it is key to a team, since he is the one that brings information from the competition, about the new trends and practices, that he found out “talking to” or while he was in line at the bank, or while sitting in the park. Observation is fundamental to discover market opportunities, and only if you understand the customer, and the competition will you be able to anticipate if we OBSERVE and explore. This profile tends to be very good with “dialogue”, presentations, negotiating during a discussion for sales. This person is really daring, a doer. You NEED to have a SALESPERSON in your team

References of salesperson profiles: Steve Jobs, Gary Veynershuk Edna Patricia (Qr42), Hernández Carlos Vizcarra Miguel (Qr43) (QR44) , , Ángel Dávila José , Hugo Abel Castro, (QR45) Galicot Ana Victoria García (QR46) (QR47) , , Carlos Córdova

Manager. The manager entrepreneur is a person who enjoys analyzing things. He is into numbers, risk analysis, he is good with costs, projections, statistics and probability. This kind of person analyzes the convenience of an investment, develops the ability to manage and justify resources, understands why we can win or lose money with that “business idea”. You NEED this profile so that the business ideas that are generally discovered by the salesperson, can be materialized into a profitable company. In other words, for the company to generate profit and income.

References of managing profiles: Mario García Franco, César Higuera (QR48).

Specialist. it is the person who knows about what is going to be sold. He is an expert programmer, animator, or fashion designer. It is the kind of person or team member who can materialize the company products or services. It is the CHEF who enjoys cooking and makes the catering service possible. You definitely NEED to have this profile so that your customer says: WOW! I LOVE IT!

References of specialist profiles: Wosniak, Alejandra Phelts Lourdes Ibañez (QR49), Elon Musk, John Lennon, (QR50) (QR51) (QR52) , , , Roberto Vizcarra Enrique Olvera Julian Rios, , Javier López Ancona Gabriel Reyes (QR53) (QR54)

What is your profile? When venturing it is very important that you acknowledge your value and contribution to the team.

To venture with success, you need to have a team. The idea of “you’re better off alone” has been a great obstacle in team collaboration, in business enterprises. You need to have an attitude that will facilitate collaboration “the strength of a team relies on its differences and not on its similarities”. A team where two people think alike, one of them is too many.

Do you need a team to venture?

When venturing, it is really important to acknowledge my contribution, my talents, and abilities to collaborate, to recognize the value and talent of others, and to recognize that without the contributions from other people, it is impossible to get a result.

The value of a team relies on its experience (the knowledge that is obtained when trying, failing, and trying again until you are successful).

The greatest ability of an entrepreneur is that of generating an internal and external collaboration network when venturing.

̈I started as a social entrepreneur with citizen associations when I was 14 years old. At 24, in 2016 I gave it a try as an independent candidate for a spot in congress and did not succeed. However, the collaborator network that I had created was a great strength to be successful in 2021. It was very important to start young, and even more important were the mentors from which I learned a lot. But the most important thing was my team that contributed with the improved ideas and actions from the first attempt. When we tried again in 2021, we already knew what we had to do, because we had already gone down that road.” Daylín Garcia, Congresswoman, 30 years old, promoter of the Instituto Emprendedor in Baja California.

Are you able to work as part of a team? This will become your most important asset.

It is recommended to have a basic team to start: Salesperson, Manager, and Specialist.

Should my collaborators be my partners? How do we become partners?

From the book: “Emprende en México” by Rudy Andrade: ̈Establish the determining questions that you or your partners must know about before starting. Given our indirect, unclear, and highly emotional communication culture, it is very important to determine through a simple, ecient, and direct process what the motivations, goals, roles, and relevant aspects of the participation from each member of the partnership are, and of course, of the team. When we start up a business as a partnership, it is very important to clarify the percentage that will be given to each partner, and of course, how the profits will be distributed. Never take for granted that everyone agrees and always look for a space to comment and discuss this core issue, since the repercussions will go beyond the initial investment: a misunderstanding can put at risk the existence of the company

Some of the questions we must answer are:

What percentage are we willing to share as partners?

What percentage must the operating partner have if he invests or doesn’t invest in the business?

How sensitive is the company before a partner who operates and has key knowledge so that the business takes place?

Is it a family business?

Will percentages be the same for family members?

Who must get a higher percentage: the one who generated the idea or the capitalist partner?

What role will we be playing in the company?

How much time will I dedicate to the business?

How much time will I be in the business?

Am I going to charge for the time I put into the business?

What do I plan to keep when I exit the business?

Document the answers to these questions. Consider that it is very positive to establish a partnership, but it must be done very clearly. Don’t think that because you have known each other for a long time, the company will be successful.

Anecdote. Once an investor in California arrived in a room where there were more than 30 entrepreneurs ready to pitch an idea. He said: “Before I hear what you have to say, I ask that everyone that is here by himself exits the room. The same goes for those who came here with their best friend or cousin. I ask that only the teams that have failed at least 3 times remain”. This is how the investor started off. Only 2 teams remained (6 people out of the 30 that were initially there).

He asked some of the entrepreneurs: “What do you think I consider important when investing?” to which we responded: “The degree of creativity of the idea? The ROI? The financial forecast?”. He said: “Do you think your idea is as creative or more creative than the dozen of ideas I hear about every day? Do you really believe that I am going to believe that your financial forecast or ROI have the slightest probability of becoming a reality?

We know that your forecast information is up to date, but will change by tomorrow. I know that the ROI is a beautiful promise which has a less than 10% probability that it will happen. The only information I can use as a basis to invest is the strength and diversity of the team. The only guarantee I have is a good team. If a good idea is handed over to a bad team, the idea will go to waste. Give a more less creative idea to a good team and it will become even better”.

ALLY NETWORK.

Identify who you consider to be your customers. What companies or businesses can get you closer to them. Who will be your suppliers? What entities, people, or institutions will be a valuable asset for your venture?

Participate in events or spaces where your clients, suppliers, and allies go. Learn and do some networking.

Identify who can be your allies in your community and start to get closer to them. TIPS:

El valor de un equipo radica en su experiencia (aprendizaje que se logra al intentar, fracasar y volverlo a intentar hasta tener éxito).

1. Be very clear on who is relevant to your ally network. It is important to differentiate between your friends and ally networks. Allies contribute professionally to consolidate and make your commercialization possible, and execute key activities for your business.

2. Find out about the events calendar where you consider that your potential allies will participate, and start scheduling events and meetings.

3. Do some networking.

4. Connect with your ecosystem and start getting recognized.

Many of the best and important relationships with the allies that we have formed, have been through events and conferences for entrepreneurs in other cities. SInce you are on the plane, while having breakfast or dinner at the hotel (tip: reserve a room in the hotel where the event will take place, most likely the attendees will stay there). You have the opportunity to meet and exchange interesting ideas with the person sitting next to you. If you go with your friend or partner, don’t stick together all the time, as you may miss out on the opportunity to meet a lot of people that might have the profile you are looking for in your ally network.

STEP 10. Incubate, grow, and scale

There is a very high mortality rate during the first year of a business venture, but you have followed a roadmap that only 1 out of 10 companies follow, and your success probability is higher than 70% than the average entrepreneur.

To be able to survive the first year, identify the failure factors for companies in Mexico, and prepare so that none of these causes touch your company:

Why do small and medium companies fail in Mexico?

According to the Asociación de Emprendedores de México (Entrepreneur Association in Mexico), through the Entrepreneurship X-Ray in Mexico (QR55), small and medium sized companies fail due to the following reasons:

• Lack of market knowledge 34%

• Bad business administration 32%

• Problems with the partners 25%

• Lack of working capital 23%

• Problems to find financing 22%

• Lack of clients 18%

• Time availability 14%

• Lack of technical knowledge 11%

• Problems with the work team 7%

Now, if we analyze the main causes of failure by sex, we might find that the main problems that lead to a company failing are the following:

MALE ENTREPRENEURS

Bad business management 35%

Lack of market knowledge 34%

Problems with the partners 25%

Lack of working capital 23%

FEMALE ENTREPRENEURS

Lack of market knowledge 32%

Bad business management 26%

Problems with the partners 25%

Time availability 23%

In general, 48% of Mexican entrepreneurs think that the conditions to venture are bad or very bad. Only 28% consider that the support for small and medium enterprises are good.

If we look into the causes for failure, they might be focused on 2 reasons:

1. Half of the causes of failure have to do with steps 3 and 4.

2. The other half of the causes are due to an ineffective management of the resources, step (9).

if you followed the ROADMAP and got to step 9, these failure causes should not happen to you.

NB: the steps in the ROADMAP might seem simple (and they are) but if leave them aside, or suppose that they are unimportant or do not execute them, it is a bad practice of 9/10 entrepreneurs who die within their first year of operation.

Recommendations during the incubation and consolidation phases (years 3-5):

• Register your brand and find out about intellectual property. See Annex 4. Basic Guide to Manage Copyrights and Intellectual Property (QR56).

• Be aware of your business dynamics, cost structure, and the commercialization strategy. NB: if a cost, a business strategy, characteristics, or consumer habit, changes significantly within your market niche, RECHECK your business model.

• If the company you started with the basic roles of Salesperson, Manager, and Specialist, you are most likely at the stage where you can make the team grow (so that the founding roles do not become operational and focus on the strategic aspects).

• Focus the Specialist on the design, innovation, production of the product or service (have him stay close to the client to keep a valuable product or service for the market niche) and that a new role: operations coordinator, focuses on activities such as purchasing, inventory management, distribution, etc. (the key operations in the company) and in offering an added value to the client, among other things.

• The Salesperson must remain doing activities related to public relations and networking, the design and sales execution of the sales strategy, dedicating at least 3-4 hours of his time to assess sales results, analyzing the prospects and sales strategies, creating strategies to generate customers to come back, creating creative content to get to more clients (thinking about how to scale results with the clients). If you deem it necessary, incorporate a community manager or a salesperson who will increase the installed capacity to sell.

• The Manager must focus on generating funds, analyzing costs, keeping healthy finances in the company, designing collection strategies and negotiations with suppliers. He must not become 100% operational. The Manager must dedicate at least 2-3 hours per day to manage resources and strategic issues. If he starts to become too operational, integrate an accounts collectible and accounts payable coordinator. NB: by the years 3-4 your team should at least have doubled.

• Remember that you are looking to consolidate a business and that your start up is not a smaller version of large companies. So if you receive any consulting or advice coming from an entrepreneur or advisor who is aware of the moment your company is undergoing (applying techniques or knowledge for corporations does not apply to your startup).

• Years 4-5 are good years, since you have discovered an operation and management flow that works. It is the time to start documenting and standardizing (in a simple and practical way). Start operating your company in a more agile yet professional way.

• Start analyzing strategies and models to scale. A traditional business model can grow and become a good business, but million dollar industries are currently those that are scalable (we are not necessarily talking about technology companies, but rather companies whose relations with clients and suppliers is done through a technological platform).

• Continue your professionalization and develop your team of collaborators. Do not invest in reducing your weaknesses, invest in potentializing your talents. Become well-known in your ecosystem due to your outstanding talents in sales, business development, programming, direction, funding management, screenwriting.

• To be able to scale, study the Scalability Model that we share in Annex 4.

Success Stories

• (QR59) Boxel

• (QR60) ClubLia

• Find a Story México

• Pulsar

• (QR61) Markzu

Steps and Considerations to Achieve Scalability.

The term scalability has extended widely in the last few years, and defines the ability that a business has to multiply its profits exponentially with a linear increase of expenses.

UBER was the company that set the point of reference for a high scalability business.

Scalable Business Model.

In a traditional business model, such as the one for a restaurant, an art school, a marketing agency, or a software development company, the relationship between the growth of income and outcome is arithmetic and with a similar trend throughout time.

Let’s take the example of a supermarket. If the supermarket wishes to increase its sales, most likely it will develop a marketing strategy that will attract clients to its sales point (investing in traditional media such as tv, billboards, radio, and others such as social media). The increase in clients will increase the profit, but at the same time will require to have more cashiers, more power usage, more inventory movement, more workers, etc., So as the profit increases, so do the expenses, keeping a profit margin throughout time

This is a traditional business due to how its figures behave. Is it a bad business? Of course not. We have nothing against having a business such as Walmart’s. However, the investment to grow is much higher and the operations risk it too. Imagine the cost of operating and managing a supermarket.

Traditional BMM:

S.P: Well located supermarket store

Let’s

look into the case of TESCO Korea. (QR62)

This company wanted to grow, but not have to dare with the risk of a millionaire investment that was required to open new supermarkets. So it analyzed its market again, its consumer habits. When Tesco understood the “market necessities” (get home and have something to cook) it generated a different value proposition. That of a “branch close to home where you can buy everything you need to cook” to “everything you need to cook delivered right at your doorstep”

It innovated the value proposition and as a result required to restructure its operations (cost structure).

NB: Operation processes arise from the value proposition, so if you innovate in the value proposition, the operations dynamics, and the management of the business changes.

Innovative BMM:

S.P: Your groceries at your doorstep, buy at the subway

Basic Elements of a Scalable Business Model:

• A technological platform to communicate with clients and suppliers.

• A necessity that is solved, is a need that is almost universal.

• The supply source is located in almost every city in the world (it is not very sophisticated).

• The company through time gets the “power to fulfill the service promise” that a supplier on its own would not be able to make good.

• A digital commercialization strategy, rather than a traditional one

NB: A scalable business model as we have mentioned, does not necessarily imply a technological service, but it does require a technological communication platform

Compras ARF ARM

Distribución ARH

Desarrollo Cobranza

Compras Finanzas Contabilidad ARH ARM

Distribución

Cobranza cajas Almacenaje

Exhibición

Mercadotecnia Etiquetado

Fig. The graph on the left shows the income and outcome behavior of a traditional business, and the one on the right shows a scalable business.

STEPS TO SCALABILITY Audiovisual Media ROADMAP

START STEP 1 Prepare

Train your mind for disruption

Get trained in fund management and networking

STEP 5 Act local

With organisms and companies dedicated to take you to another level

• Meditate

• Obserb

• Travel

• Read

• Know

STEP 2 Connect

With organisms and companies dedicated to take you to another level

STEP 4 Value proposal

STEP 3

Think global

Identify s need in the world ¿Aspirin or vitamin?

STEP 6 Study

Success stories

STEP 7

Study

Scalability

Income Outcome

Scalable Business

Scalability model

Providers from around the world

Communication platform Clients from around the world

Communication strategy

A powerful promise

Convenient income in your time, Just by certifying your services

Communication strategy

A powerful promise

Non-traditional service

STEP 10 Inspire and share

Your story

STEP 8

Roadmap

Follow the 10 steps from the Entrepreneurial Roadmap

STEP 9

Focus on MKT

Communicate in an easy way your value proposal

Scalability model (QR63)

Steps to Achieve Scalability.

1. Get Ready.

a. Train your mind for disruption. You must be a observation. A lot of observation and analysis determined by my references. The wider and

5. Think global and act local.

person with flexible thinking.

required. A great ability is required to listen diverse my references are, the more opportunities will I have to “create and believe

know the world. Travel, read, know, connect. Remember that our creativity is the effect of it’s possible”.

c. Study the profile and context of the founders

b. Develop the habit of meditation and of the trends and problems in the world is to headaches. In other words, you require to our points of reference. My limits are of scalable Business Ideas.

d. Train to generate alliances and manage sources of funding (you require lots of

money).

2. Connect with and companies dedicated entities (QR64) to taking companies to the next level.

3. Think Global. What necessity exists in your city, in the state, at a national or international level? What headache or benefit can you identify that might have a market niche in every city in the world?

4. Generate a solution to that headache in a creative way (an aspirin) or a vitamin for the market. Consider that the value proposition does not require a sophisticated product or a very specialized service whose providers need to have specialized training or a development process that might take months in order to be able to provide the service. NB: By definition, a STARTUP is a new company with a technological foundation, with a high scalability potential, that only requires investment to grow exponentially. Example: in the case of UBER or Tesco you only require to invest in the communication strategy with clients and suppliers and a city is activated.

6. Study scalable businesses, their strategies and business models.

7. Check the basic elements and model of companies that scale. . Check out the Scalability Model (Qr63)

8. Follow the ROADMAP steps for venturing in CCIs from a different perspective: you wish to have a scalable BMM and require to find a world necessity with suppliers that are also available around the world.

Roadmap: 10 steps to become an entrepreneur.

STEP 1. Analyze the Success Triad and Define What Success Means to You.

STEP 2. Position Yourself in Your Industry and in Your Entrepreneurial Ecosystem

STEP 3. Identify a Need in a Market Niche

STEP 4. Create a Value Proposition (Product/Service).

STEP 5. Organize Your Ideas in a Business Model Canvas and Define How You Will Make Money.

STEP 6. Validate Your Ideas and Hypothesis (Design a Minimum Viable Product).

STEP 7. Go Out and Sell and If Do You Sell…

STEP 8. START UP A BUSINESS and Become an Entrepreneur.

STEP 9. Manage Resources

STEP 10. Incubate, Grow, and Scale

9. Concentrate on the marketing. Design a strategy to quickly communicate your value proposition. Consider indirect channels. Remember that your clients nowadays receive millions of messages during the day, therefore great marketing is key to be visible and recognized in a market niche.

10.Share your story and start inspiring other entrepreneurs.

Examples and Success Stories for Scalability.

Aiween, Cecilia Vega (México): Aiween is a social network where entrepreneurs train, network and advertise.

Pluralsight. https://www.pluralsight.com/codeschool.

It is a training platform for people who wish to develop their skills in the most trending topics related to software development, artificial intelligence, security, machine learning, among others.

. This company was established on January 1, App Canva

2012 in Sydney, Australia by Melanie Perkins, who previously founded Fusion Books, the largest publishing house in Australia. Canva is launched together with the company, providing simplified tools to make ads, designs, and billboards with vector graphics. Initially it was available only in its web version, but a year later it was launched for Android. The website offers a catalog of more than 15 million personalizable templates to edit and create your own projects and you can have a limited access for the free version. Unlimited access by paying an annual subscription for $1,209 Pesos, or unlimited access with group subscriptions for $1,890 Pesos. Figures have not ceased to increase for Canva, ever since its creation. In 2019 they had 20 million active users around the world. Two years later, they have reached 55, out of which 3 million are paid subscriptions. The company invoicing increased 130% in 2020, the year of the pandemic, reaching 500 million dollars per year and is currently worth $15.000 million US Dollars.

Clip a financial technology established in 2012 by Adolfo Babatz. Clip is the solution to receive payments with debit and credit cards by using smartphones or tablets and has tools to support Mexican businesses to increase their sales, such as the Clip Reader (for cards that have a chip or magnetic stripes). The Clip app

(available for iOS and Android) and the Control Panel at www clip.mx. It currently has more than 600 collaborators all over Mexico, and has generated more than $400 million US Dollars since it was founded. It is currently worth $2,000 million US Dollars.

KAVAC. A Unicorn company dedicated to car sales (unicorn companies are companies that are able to generate $1,000 million dollars during their first year of creation).

To us, this Entrepreneurship Manual has been an opportunity to understand what it means to “make things happen”. It is a road that will allow us to be creative and exercise our freedom. So be it.

“The road of the artist is in essence, a spiritual path, initiated and practiced through creativity… Primary imagination, I hold to be the living power. I cannot teach how to create, rather I try that each one allows themselves to be creative”. Julia Cameron

From one creative mind to another, Brenda García Laurent shares the following “Earthly Steps to Show Sublime Creativity” (Annex 6) (QR65)

Annex 6. Infographic STEPS for Scalability (QR66)

O. J. de Groot, M. Dini, N. Gligo, L. Peralta y S. Rovira (2020): “Economía creativa en la revolución digital: la acción para fortalecer la cadena regional de animación digital en países mesoamericanos”, Documentos de Proyectos (LC/TS.2020/29), Santiago, Comisión Económica para América Latina y el Caribe (CEPAL).

Secretaría de Cultura y Dirección General de Tecnologías de la Información y Comunicaciones: “Mapa de Ruta de Industrias Creativas Digitales” (Primera edición, 2018) Producción: Secretaría de Cultura.

BOP Consulting: “Guía práctica PARA mapear LAS INDUSTRIAS CREATIVAS” por: Serie Economía creativa y cultural

References de British Council ⁄Publicada por British Council.

British Council en México: “Habilidades para la economía creativa: necesidades, formación y estilos de aprendizaje en México”.

Estrategias de Desarrollo y Competitividad SAPI de CV: “Decide Ser Grande: 13 Historias que Inspiran y su fórmula del éxito empresarial”. (Primera Edición Noviembre 2016). Mexicali B.C. Laredo Impresores

Andrade, Rudy (Primera Edición julio 2019): “Emprende en México”. Mexicali B.C. Laredo Impresores

Gary W. Keller y Jay Papasan (Noviembre, 2012) : “The One Thing, The Suprisingly Simple Truth Behind Extraordinary Results''. Estados Unidos. Editorial Bard Press.

Ken Blanchard, Don Hutson y Ethan Willis (2009): “Empresario en un minuto”. Editorial Granica.

Steve Blank y Bob Dorf (Marzo, 2012) : “The Startup Owner's Manual: The Step-By-Step Guide for Building a Great Company “. Estados Unidos. Editorial K & S Ranch.

Stephen Covey (1989) : “Los siete hábitos de la gente altamente efectiva”. Estados Unidos. Editorial Free Press.

Malcolm Gladwell (Noviembre, 2008) : “Outliers”. Estados Unidos. Editorial Little Brown and Company

Fric Martinez (marzo, 2017) : “Startupismo”. México. Editorial Fric Martinez.

Michelle E. Messina y Jonathan C. Baer (2016) : “Decoding Silicon Valley: The Insider's Guide”. Redwood City, California. Decode Publishers.

Special Collaborations

Is an attorney who graduated from UABC, an international consultant and promoter of international liaisons in education, economic development, and innovation. She is currently working as the Liaisons Coordinator at the Universidad Politécnica de Baja California (UPBC), she represents Mexico at the 4 Border Alliance, Arizona, California, Baja California and Sonora. She is a leader in touristic, economic, sustainable development, education-cultural, and philanthropy programs.

Abelardo Mercado Herrera

Holds a Ph.D in Science with a concentration in Astrophysics. He is currently the Director of the Information Technologies Engineering program and a professor in the Animation and Visual Effects engineering program at theUniversidad Politécnica de Baja California (UPBC) .

Hugo Abel Castro Bojórquez

He holds a Degree in Electronic Cybernetics. He is a promoter of the development of video games, and founder of GAMACON and CEO of BC MEDIA LAB. He has been invited several times to speak as a panel member at the San Diego Comic Con

Carlos Alberto Cordova Burgueño

He holds a Degree in Audiovisual Media from the UABC He is the founder of Find a Story Entertainment, a company dedicated to creative production, focusing on audiovisual production, graphic design, and production logistics.

Adriana Eguia Alaniz

She holds a degree in International Business from Inholland University, an MBA from Cetys Universidad. She is the former Executive Director of Economic and Industrial Development of Tuana A.C. She has been acknowledged by Expansión magazine as one of the 30

people to change the world. She was part of the producing team of the first border TEDx held both in San Diego and in Tuana. She is currently the Vicepresident of VESTA Group

Rodolfo Andrade

He holds a Master in Marketing from CETYS Universidad. He graduated from the Economic Development Institute from the University of Oklahoma. He is the author of the book entitled "Entrepreneurship in Mexico" and of Lean Mx, an entrepreneurial methodology based on lean innovation, adapted to the business and cultural environment in Mexico. He is a partner and Director of AP Consultores S.C. and he is currently the Deputy Secretary of Economy of Baja California.

Carlos Vizcarra Muñoz

He holds a Degree in Law from the UABC, MBA and a Marketing Specialty Course from CETYS Universidad. He is a producer, author, singer, and founder of PULSAR MEDIA HOUSE, a company dedicated to marketing consulting, social media, digital marketing, advertising, and digital content.

Roberto Vizcarra Muñoz

He holds a degree in Mechatronics and an MBA in High Direction. He is the founder and General Director of G Nerd, the only Google Partner of Google in northwestern Mexico

Lourdes Ibáñez Aldana

She graduated from Informatics in UABC. She has been a software developer, consultant, trainer, and was considered a success story in the Tuana Innovadora 2012 movement. She is the founder and CEO of CLUB LIA, a company dedicated to developing technology and educational services that currently has more than 10 000 students.

Maria De Los Angeles Murillo Flores

Eloisa Perez Gonzalez

She holds graduated from Communications, and holds an MBA in Human Resources from the Tecnológico de Monterrey. She has more than 25 years of experience in designing and developing formative solutions with an innovative component for academic courses in the entrepreneurial sector. She has provided consulting services and academic training in Spain, Mexico, Latin America, and the USA. She is the current Director of Education Innovation at the EGADE Business School in Tecnológico de Monterrey.

Daylin Garcia Ruvalcaba

She holds a Degree in International Relations from the UABC. She was the former Technical Secretary of the State Council to Promote Wellbeing Activities and Social Development, former President of the National Citizen Council to Follow Up on Public Policies for the Youth, and is currently a congress member for the 24th Legislature of the State Congress in the State of Baja California.

Abelardo Vazquez Ramos

He is a musical producer with more than 25 years of experience in the music industry. He has produced the musical groups from Mexicali: Reik, Nikki Clan and Vázquez Sounds. He is the current Director of Creative Industries from the Secretary of Economy and Innovation in the State of Baja California

He holds a Ph. D in Philosophy and Economic Development and in International Development by the UABC. He has more than 30 years of experience promoting economic development in the Baja CaliforniaUS border. He is the former Director of Institution Development of Tuana Innovadora and a current representative of the Centro Internacional de Empresa Privada (ICPC).

She studied audiovisual media at the Universidad Autónoma de Baja California. Since then, she has been working in several audiovisual projects, in movies, series, commercials, and documentaries in the art, costume, and production departments. She worked in the Cinematographic Training Center in the Academic Coordination department, and supervised dissertation projects under the supervision of Master Felipe Cazals. She is well versed in putting together and revising binders for film projects, course planning, and academic liaison, as well as in the production and coordination processes. She also has experience in academics, she has participated in film festivals, especially in the events area. She is currently a project developer in Sarape Films, in the city of Guadalajara

Flavio Olivieri

Brenda García (QR67)

Abraham Hernández

Abraham specializes in Business Creation and Development at the ITM. He has experience in audiovisual executive production in Mexicali with It Feels Music- BIGSUN-, in Public Relations and Events with Youth Development ABP in the city of Monterrey, and has been since 2017 the Director of Administrative Management and Communications at the Conservatory in the city of Mexicali.

Gabriel

Reyes

Gabriel Reyes García, CEO of iDigital Groups and Zona Tuanense, has been a promoter of innovation in marketing, film, and communication in the region. He is

a pioneer in animation and digital production since 1990, and his career has earned him several awards such as: Cinco Flamas de Oro from the Asociación Nacional de la Publicidad Noroeste (National Association of Northwest Advertising), an acceptance speech at the Short Film Corner at the Cannes Festival 2014, an award in Uruguay for the TV Tuana project, among others. He is the cocreator of the Mexico Sports Cluster together with Alazraki Network. He has recently innovated with Transmedia concepts as an axis for Digital Marketing. He is a producer for EPK and AMC, and is responsible for the production of additional marketing content for the series Fear the Walking Dead.

Acknowledgments

“Never doubt that a small group of thoughtful, committed citizens can change the world. Indeed, it is the only thing that ever has”.Margaret Mead, Cultural Anthropologist.

We are very excited to know that Tuana Innovadora, a movement that started in 2010 with the purpose of showing the strengths and good things about this city to the rest of the region and to the entire world, is still alive and growing. It has become a reference thanks to the richness of its projects through the initiatives of its citizens.

For that reason, we are very proud to participate in such an ambitious project that will seek to trigger Creative Industries, and for having been chosen to develop this Entrepreneurial Roadmap project for CreativeAudiovisual Industries.

We would like to thank Mr. José Galicot and the entire Tuana Innovadora team, because thanks to their vision and leadership, have made the participation of the citizens a reality to be able to achieve the growth and development of the community.

We greatly appreciate the support and leadership of Comuna Creativa of Tuana Innovadora, which is the responsible axis of this project. Coordinated by Claudia Basurto and Yahir Hernández, as well as to the Consejo Consultivo ACIC (Art, Culture, and Creative Industries), composed by Rigoberto Domínguez, Luisa Gómez Da Silva, Eduardo Gurría, Ana Gurría, Marina Gurría, Enrique Jiménez “Ejival”, Ingrid Kuri, Flavio Olivieri, Jorge Soto, Ramón Toledo and Abelardo Vázquez.

This project is now a reality thanks to a series of interviews that we conducted to be able to get to the heart of this document: the Roadmap that is now in your hands. Finding out more about success stories, experts who are passionate about their work, and sharing visions for a common goal, will always be our favorite part about these initiatives.

Thanks to all of you:

María de los Ángeles Murillo Flores

Edna Patricia Hernández

Abelardo Mercado Herrera

Abraham Hernández

Hugo Abel Castro Bojórquez

Carlos Alberto Cordova Burgueño

Adriana Aguia Alaniz

Rodolfo Andrade

Carlos Vizcarra Muñoz

Roberto Vizcarra Muñoz

Lourdes Ibáñez Aldana

Eloisa Pérez González

Daylin García Ruvalcaba

Abelardo Vázquez Ramos

Flavio Olivieri

Brenda García

Abraham Hernández

Gabriel Reyes

We’d also like to thank all of our inspirations and references of entrepreneurial ideas, which are way too many to mention in such a small space. It has been more than 30 years of conversations, books, videos, workshops, conferences, etc., that make us vibrate and resonate inside with all of those topics and that trigger our minds to continue thinking about how to do things.

Finally, thanks to you, Entrepreneurs and Business Owners interested in better venturing, assuming the freedom and responsibility of envisioning and materializing your visions, and through this road generate jobs, satisfied customers, and a series of benefits for the community

Thank you for looking through this manual that was made thinking to help you have a successful project.

Remember: it is a road that you can walk many times.

We hope that you will have a road full of success, but above all, of satisfaction.

Macedo Cham Consultants.

Glossary

Manager. It is the person in charge of performing administrative tasks through planning, organization, direction, and control of every area within a social group or an organization to reach objectives through the ecient use of resources.

Back to basics. To go back to what is basic

BID. Inter-American Development Bank.

British Council. Public Cultural Institute of the United Kingdom.

Catering. Institutional food service or collective food service that provides a determined amount of food.

CIPE. Center for International Private Enterprise.

CEPAL. Economic Commission for Latin America and the Caribbean

Checklist. A control method that relates different tasks, activities, and conducts that must be followed to achieve a result.

Clusters. Group of interrelated companies or institutions, that are geographically concentrated, and compete in the same business.

Coaching. It is a process of reflexive and creative accompaniment, through which a duly trained professional accompanies his clients to reach their objectives.

Call to action. A call to take immediate action.

Creative Economy. It is the sector in the economy involving the generation of ideas and knowledge

Orange Economy. Set of activities consisting in transforming ideas into cultural goods and services.

Unicorn Company. Unicorn companies are those who are able to generate a value of 1,000 million dollars during the first year of their creation

Ecosystem. The interaction that takes place between individual and institutional role players to foster entrepreneurial spirit, the innovation and growth of small and medium enterprises..

Entrepreneur. He who makes things happen.

Entrepreneurial Entrepreneur. He who makes a business happen

Scalability. It is a concept that makes reference to the capacity of a company, a project, or even a computer system, to reach exponential growth.

Specialist. He who cultivates, practices, or masters a specific discipline, subject, or activity.

Effectiveness. Effectiveness = Eciency plus ecacy. Ecacy means achieving the result in terms of what my client wants, eciency is the indicator of the intelligence with which we take advantage of the resources. Effectiveness is therefore, doing things right, the first time.

Elevator PITCH. A speech or presentation that intends to be shocking, agile and fast that must last between 45 seconds and a minute

SWOT. Technique used to identify the strengths, weaknesses, opportunities, and threats, in order to develop a strategic business plan.

GEM. Global Entrepreneurship Monitor.

Win-Win or no deal. It is an approach where the parties involved are able to conclude a negotiation process in a satisfactory way. If one wins, the other one does too. If the parties are unable to find an alternative where both of them reach their objectives, there wouldn’t be a negotiation. Win-Win or No Deal is a life philosophy, it requires a creative thinking framework to generate alternatives towards a higher goal other than just just for the individual, that of the team Creative and Cultural Industries. Those industries that combine creation, production, and commercialization of materials that are immaterial and of cultural nature.

Incubator. A support program for entrepreneur initiatives.

Creative Digital Industries. They are companies dedicated to software development, audiovisual or interactive content creation, animation, video games, digital platforms, applications, creative production, IT services, among others.mediante el uso eficiente de los recursos.

Mission. Function, order, or purpose that a person must comply with

Audiovisual Media. Are those massive communication mechanisms that transmit their messages through channels involving not only what can be seen but also what can be heard. Business Model. A document that contains the “formula to generate a business”. It is a methodology that validates the hypothesis of a business. It is the methodology to establish how to generate profit in a business.

Market Niche. It is a group of people or companies that share a series of similar characteristics that are yet to be covered by a product or service.

Networking. It is the social and professional circle that can provide several growth and referral opportunities for your business or company if you are an entrepreneur.

Blue Ocean. It is that space belonging to the market that is yet to be exploited, which will generate the opportunity for a profitable growth that has many advantages.

Minimum Viable Product. It is a product with the essential functionality, used to validate an idea in the market.

Value Proposition. They are the set of products or services that satisfy the requirements of a determined market segment.

Promise. The commitment you create with your customers about what your brand will deliver to them.

PITCH. It is a simple and brief presentation of what you plan to do in the future with your business or startup.

Roadmap. Map of the route you plan to take

ROI. Return of the investment.

Startup. It is a newly created company that, thanks to its scalable business model and to the use of new technologies, has great growth potential.

Tuana Innovadora. A citizen platform that integrates proposals that trigger the strengths that will improve the quality of life of the people in Tuana.

Success Triad. Knowledge, Capabilities, Attitude

Talent. A special ability or the ease that a person has to learn or execute a specific task.

UNESCO. United Nations Educational, Scientific and Cultural Organization

Vision. A projection of the future of a company.

Salesperson. It is a person who in charge of selling or commercializing the products or services of a company

Transborder Internationalization Guide within Cali-Baja, for the subsector of Audiovisual Media for the Creative and Cultural Industries of Tijuana

Index

Autoría

Flavio Olivieri Borobia

• Introduction

• Contextual Continuity

Base Definitions

• Key findings from CCI ecosystem mapping and scalability/entrepreneurship roadmaps

Scalability Findings

Market Context

• The internationalization of CCI in Latin America

• The Cultural and Creative Industries in California, USA

• Transborder Internationalization Strategy in Cali-Baja

• Experts Interviewed

• Trans border Internationalization

ROADMAP in Cali-Baja

• About the Author

• References

• Qrs

Introduction

This Transborder Internationalization Guide is an add-on document to the Digital Media Entrepreneurship Manual prepared by the consulting firm Macedo Cham, which is part of the Center for International Private Enterprise (CIPE) and Tuana Innovadora program to increase youth civic and economic participation in strengthening democratic culture in the City of Tuana. The program that started in 2021 included the development of two scalability roadmaps for entrepreneurs participating in economic activities related to the Cultural and Creative Industries (CCI).

The scalability roadmap’s objective is to provide specific recommendations for entrepreneurs in the CCI including strategies and resources that enable them to expand their market exponentially. Given the broad set of areas of specialization of the CCI, the roadmaps focused on preselected subsectors considered most feasible to scale-up. The selection of the subsectors was the conclusion of the first phase of the program focused on the Mapping of the CCI Ecosystem in Tuana. The selected subsectors are the digitalization of traditional cultural activities such as performing and visual arts

(Music, dance, theater, painting, sculpting, etc.) and Audiovisual Media (Digital Media) that includes videogames, animation, visual effects, and virtual reality among others.

The goal of the Transborder Internationalization Guide in the Cali-Baja Binational Region is to provide strategies and practical recommendations to entrepreneurs in the Digital Media subsector of Tuana. It intends to enable entrepreneurs to maximize the opportunities presented by the geographic proximity to one of the world’s most robust and competitive markets in this subsector. This document explains the internationalization process as a Scale-up strategy. It presents a broad description of the CCI industry in the State of California and establishes a step-by-step roadmap on how to participate in it. The recommendations are based on documented best practices and the personal experiences of three accomplished entrepreneurs of the Digital Media subsector. It is an add-on document to the entrepreneurship and scalability manuals of the CCI which should be reviewed previously

Contextual Continuity

To provide continuity in terminology and context based previously in the Mapping of the CCI Ecosystem entrepreneurship and scalability roadmaps, following is a review of the main concepts, basic definitions and proposed principles.

Base Definitions:

Cultural and Creative Industries (CCI): Economic activities based on individual creativity, skill and talent to generate wealth and employment through the commercialization of intellectual property (Sanchez and Alonso, 2020). It includes activities to create, produce, and or distribute creative goods and services, as well as linking them to other economic sectors (European Cluster Observatory, 2013).

Creative Economy: The Interamerican Development Bank (IDB) defines the Creative Economy (or Orange Economy) as a set of interrelated economic activities that allow for ideas to be transformed to cultural goods and services, and that value is determined by the content of their intellectual property (Buitrago y Duque, 2013).

Audiovisual Media: Refers to the subsectors of the CCI related to mechanisms of mass communication and transmission of messages by electronic channels that involve sight and sound. It also refers to activities focused on promoting content that is distributed through a digital screen such as film, animation, audiovisual development, publicity, multimedia, electronic learning, and videogames.

Business Model: “A business model is the simplified representation of how an enterprise creates, delivers and captures value” (Osterwalder & Pigneur, 2014). It is the definition of strategies to generate value for customers and allies (Sánchez et al, 2022) including the use of technology for scaling and strategies for monetization

Value Proposition: Set of products and services that satisfy the requirements of a specific market segment.

The differentiation of products and services in respect to their competition, with unique and innovative attributes.

High Impact Entrepreneurship: It is an enterprise with the potential to multiply its income sustainably and increase their capitalization in an accelerated fashion, most commonly it will have disruptive innovation in established markets.

Scalability: Refers to the capability of an Enterprise to multiply its income exponentially sustaining a linear growth of their operational costs (Macedo et al, 2022). The capability of companies to overcome growth limitations, to leverage economies of scale and an accelerated acquisition of customers. They serve a universal need (global) and can be accessible by digital media

Economies of Scale: When average costs of production diminish in proportion to accelerated sales growth. It refers to the point where increments in sales do not require proportional increments in capital investment. (For example, a software platform once developed the incremental cost of adding new users is negligible)

Replicable business model: It refers to an enterprise with well defined processes that can be replicated with high levels of standardization and reliability over space and time. Although it achieves a certain level of economies of scale their profitability will be constant and linear, the increase of sales is not exponential, and costs increment in proportion to new sales.

Market Niche: A segment of a broader market with specific needs and preferences, a reduced subgroup of clients that share characteristics. A fragment of specialization determined by specific attributes such as price, value added, quality, convenience, or design.

Value Chain: A sequence of activities within an enterprise that accumulate value for customers. From design, logistics, production and delivery of goods and services. A method of analysis of the Value Chain by Michael Porter in 1985 helps identify sources of competitive advantages of companies. The same methodology can be applied to the analysis of an industry in general terms and to determine the competitive position of a company within the industry.

Core Competency: The central or basic capabilities of an enterprise, that differentiates it from its competition, it may include a unique skill, knowledge, or specialization. The accumulated collective knowledge of an organization, including processes, designs, market understanding, social networks, and communication channels.

Disruptive Innovation: Innovations that have a transformative impact on an industry or market. Mostly driven by new technology, or new business models that drastically change the competitive dynamics of a market displacing established products and services.

Blue Ocean Strategy: A competitiveness and

differentiation strategic framework developed by W Chan Kim y Renée Mauborgne in 2005. Based on the observation of competing companies in a saturated market (Red Ocean), and the development of differentiated market segments not being served (Blue Ocean). The Blue Ocean refers to the creation of new markets, opportunities, and niches with little or nonexisting competition, through offering highly differentiated value

Business Acceleration: Refers to a strategy that provides enterprises with the needed resources to meet their business goals in a shorter period. A designed acceleration plan based on the identified strengths and competitive advantages of the company; a capability development program offers the resources needed for rapid expansion. The resources may include mentorship, networking, investment capital and access to new markets.

Business Internationalization: An acceleration and scalability strategy for enterprises. The process of a company to develop their activities in one or several countries different from the country of origin. Allows access to new markets, strategic alliances, and diverse resources such as capital, technology and/or more competitive production resources. It can start with exporting of products to nearby countries, to the full globalization of a company’s value chain

Key findings from CCI ecosystem mapping and scalability/entrepreneurship roadmaps.

• The city of Tuana is a strategic development hub due to its vicinity to the State of California and the United States.

• According to the Economic Census by INEGI in 2019 there are 9018 companies registered within the Cultural and Creative Industries (CCI) in the City of Tuana, which represent 17.9% of all business units.

• The audiovisual communications and radio transmission subsectors represent 7% of total CCI production.

• 40% of survey respondents are related to the Audiovisual Media subsector, making it the most

representative subsector. This group is comprised by 14% audiovisual production, 8% for music production and promotion and same for marketing, followed by creative digital services, graphic design, digital and 3D applications with a corresponding 7% of participation.

• Results of the survey highlight activities related to audiovisual media. Within the subsectors of creative digital services, the main activities identified are multimedia design, digital marketing, interactive and virtual reality, and online distribution.

• In the subsector of audiovisual production, the main activities identified are sound design, location setup, casting and props. Within graphic, digital and 3D design the most relevant activities are photography and videography, as well as digital applications (apps development). Representing 12.3% of the total survey respondents.

• In relation to foreign investment or international linkages of the CCI, only 17.02% of respondents said they had foreign investment. The transborder dynamics of this companies is based in supply chain linkages, including training and consulting services, as well as specialized supplies and technology.

• The main services offered to transborder markets are production services, followed by design and ideation, and thirdly by commercialization and customer service.

• Regarding collaboration with other organizations or businesses, respondents said that 30% are local, 26% regional, 25% national and 16.7% foreign, and only 2% said they did not have any collaborations.

• From the youth focused survey, 10% said they had USA citizenship in addition to the Mexican nationality. Tuana being a border city it is common for cross border

Scalability Findings:

• CCI activities looking to link to foreign markets should consider value added strategies based on digital technology and intellectual property.

• An important element highly appreciated is the capacity to innovate creative products based on local cultural assets, with a global reach and significance, as differentiating elements and distinctive character.

• International funding sources such as UNESCO’s International Fund for Cultural Diversity (FIDC) should be sought out as an active financial resource. As well as funding from EU’s Europa Creativa and the Asia Cultural Board. The InterAmerican Development Bank has financing initiatives focused on cultural and creative sectors through entrepreneurship competitions and acquisition of art from regional creators.

• It is increasingly dicult to access public funding and

relationships, more than 50% of the youth respondents said they had a visa to visit the USA and does so frequently at least once a month.

• Youth respondents mentioned as a priority for their activity Transborder Presence, international networks, transborder projects in San Diego and international projects.

• Strengths of CCI professionals in Tuana: Transborder dynamics, flow of customers, knowledge, talent, technology and culture. Access to digital platforms as an interaction media as well as a transcultural and cosmopolitan culture, diverse and creative. Being a community with solidarity that builds collaborative links organically. Also that they take advantage of the border location and the use of digital platforms.

• Opportunities: Existence of emerging sectors such as film, digital animation, music, visual arts, industrial design, furniture design, and fashion design. International events such as the World Design Capital 2024 (WDC), and ComiCon in San Diego. The geographic vicinity to California, making Tuana the portal to Latin America.

to survive on donations, that is why private and selffunded investments are required and should be sought out. Private funding can be obtained with Foundations that promote culture such as museums, Angel Investors (Seed Funding) or by Crowdfunding platforms.

• For Scaling-up projects it is important to use technology and learn about diverse business models and monetization strategies.

• Online services with “freemium” business models that offer “pay what you want” options for audiences, as well as “gamification” schemes based on reward systems or collective barter/exchange platforms where users can exchange goods or for “shared use” models. Additionally, promoting mass collaboration digital platforms for collective content development or “crowdsourcing”.

• Facilitating access to intellectual property registration oces such as INAUTOR is very important. CCI need to take advantage of laws of authoring rights that provide creators a set of exclusive use rights over their work for a determined period.

• Strategic Alliances and collaborations are crucial for the development of CCI. Interactions with diverse actors of the orange economy ecosystem, such as government and civic organizations, are very important to access the resources and complementary capabilities needed to reach new markets.

• Creative agents should leverage their core competencies (innovation, creativity, artistic skills) by implementing digital technologies to create new sources of income, distribution channels and forms of communication with their clients to scale-up.

• CCI creators need to document their creative catalogue, identifying the different projects and activities they have developed. This can be used to measure and analyze progress, leveraging digital technologies to promote their cultural and creative offerings.

• CCI need to develop a creative and a business Pitch. The creative pitch to communicate your artistic and cultural message effectively, build on the unique style of the creators (personal branding), and a second pitch for business, to communicate the financial opportunities, commercialization model and cost structure.

• CCI need to evaluate their readiness level for Scalingup. Typically, an entrepreneurial project should have 4 to 6 years of consolidation before entering an accelerated scalability process. It is crucial to have an established leadership TEAM that is very strong in three basic functions: Sales, Production (Creative Capabilities) and Administration. They should have the appropriate mentors and necessary resources. The process of scaling-up is like starting a new entrepreneurial project, a new period of considerable investment, were returns will not materialize in the short term.

• Important to refine their Value Proposition. To start the scale-up process it is key to understand the unmet needs of the market that match their core competencies, clarifying their Value Proposition and Market Niche.

• Strengthen their business model replicability and scalability. They mut obtain the necessary, technology, processes, intellectual property, economies of scale and competitive advantages that will enable them to increase sales without requiring a proportional investment in capacity development. An exponential growth model should be clearly defined, and resources focused on sales efforts.

• Focus on Sales and Marketing. CCI should fine tune their communication, their Pitch, their communications channels, strategic alliances, public relations, and positioning of competitive advantages.

Market Context:

The internationalization of CCI in Latin America

• The CCI in Latin America have increased their economic contribution to represent 6% of the region’s GDP (Rodríguez, 2018).

• Exports of creative industries from Mexico reached $4.7 US Billion in 2012. The great majority generated by exports of Cultural Products ($4.5 billion) and the rest in creative services. (UNCTAD, 2016: 100).

• The internationalization of culture is feasible due to the openness of transborder transmission of ideas and knowledge based on the appreciation of the diversity and originality or territories. (Redondo Méndez, A.C., 2020).

• The main internationalization strategy is through establishing Strategic Alliances (Redondo Méndez, A.C., 2020). Networking has become the most important strategy for the cultural sector, through multiple

interactions of cooperation, joint work, and contact with strategic partners that allow expansion to foreign markets.

• Transborder Cooperation has been a key finding for strengthening internationalization processes. It enables creating new networks of support and entrepreneurial growth. The internationalization of cultural industries in the Latin American region depends on cross border collaboration. (Hernández-Acosta, 2020).

• The great majority of entrepreneurial efforts to reach foreign markets are privately financed and self-funded.

• In Mexico, according to the national census (INEGI) exports of CCI reached $24 US billion in 2019, a record number, more than double from 2013. Audiovisual Media represented close to 40% of the total output of CCI, reaching more than $12 US billion in 2020.

Producción cultural delos hogares

México:

De acuerdo a datos de INEGI, México exportó • aproximadamente 24 mil millones de dólares en el 2019, una cifra récord más del doble de lo alcanzado en 2013.

Músicay conciertos Libros impresiones yprensas Medios audio visuales Artesanías Diseñoy servicios creativos Patrimonio material ynatural Formación ydifusión culturalen istituciones educativas Creacción 86

Notas y llamadas: Cifras preliminares La suma de los parciales puede no coincidir con los totales debido al redondeo de las cifras.

Fuente:

Los Medios Audiovisuales representan cerca de un 40% • del PIB de las ICCs, alcanzando un monto de 242,353 millones de pesos en 2020.

PIB del sector de la cultura por áreas generales Distribución porcentual 2020

The Cultural and Creative Industries in California, USA:

• Summary of findings from the Otis College of Art and Design Report on the Creative Economy 2021

• CCI represent 25% of the total California economy, considering direct and indirect impact.

• Total production value of CCI reaches $358 US Billion (11.8% of the total economy of CA). 86.9% of which comes from subsectors related to Digital Media and Entertainment.

• The sector employs over 1.4 million people, representing 7.8% of total employment in the State. The Entertainment and Digital Media (EDM) subsector employs over one million people, of which 31% are in the Los Angeles metro area.

• The EDM is comprised by activities related to digital media representing 74.5% of the sector GDP and 64.4% of the employment. Activities related to film and video represent 8.2% of the GDP and 13.9% of employment. Other activities with less contribution include audio recording, independent artists, writers, advertising, and public relations.

• The Audiovisual (Film and Video) subsector has had extraordinary growth driven by the new streaming platforms. Since 2007 the State has generated more than 320,000 jobs in this subsector. In 2021 growth reached 102% compared to the previous year that was impacted by the pandemic closures. 38% of employment is concentrated in the County of Los Angeles, an estimated 115,000 jobs. It is estimated that in 2022 streaming platforms will invest from $110 to $140 US billion dollars in new content production

• Average salaries in the CCI of California are estimated at $158,000 dollars annually. There are significant differences by subsector, where the highest levels are in digital media at $239,000 and lowest in the scenic and classical arts at an average of $58,000.

• In post-pandemic markets there is a clear

technological convergence trend, where digital platforms of videogames allow interaction with intellectual assets, brands, and other users, blurring the borders among industries and stimulating electronic commerce. It is estimated that that this trend will accelerate in the coming years, opening new opportunities.

• Digitalization is transforming value chains in all the phases of the creative economy, from creation, production and distribution of goods, services, and content. With the accelerated changes in visual effects (VFX), content is produced in the subsector of Digital Media and Entertainment crossing to other subsectors.

• In San Diego and the Imperial Valley there is an estimated 89,600 jobs in the sector, that representing 2.3% of the total employment. The creative economy grew at 4% between 2007 and 2019. The subsector of Entertainment and Digital Media represents 57% of the CCI. Average salaries are estimated at $98,947 dollars annually in 2020.

Video Juegos – el Sector Dorado

El Estado de California es el indiscutible centro de la industria de los videojuegos, con una producción anual superior a los $52,000 millones de dólares. ($22 directos y $29 en el ecosistema del sector). Cuenta con 218,000 empleos (57,400 directos), y el resto en la cadena de valor.

Fuente: Video Game in the 21 st Century – 2020 economic impact report by ESA).

Transborder Internationalization Strategy in Cali-Baja:

Scale-up strategies for enterprises can generally be done in two fundamental paths, one by expanding the number of products and services to existing clients, and the other by offering their products and services to new markets. In any of the two paths the goal is to significantly increase their sales. For the purposes of this guide, we will focus on the second strategy of developing new markets, these could be within the national boundaries or in foreign markets through the process of internationalization

Internationalization of enterprises is one of the main scalability strategies in the world of business (Cateora 2011). It is a way of increasing the size of the potential market and diversifying forms of income or business models.

By focusing on the Transborder Internationalization in the Cali-Baja region, we propose a strategy that leverages the geographic proximity of Tuana to one of the larges CCI markets in the World, especially in the Audiovisual Media subsector as explained previously. This triad of factors enables us to propose a viable Scale-up Roadmap for this subsector in the city of Tuana.

The geographic proximity allows for the implementation of internationalization strategies at a LOWER cost and risk. As we saw in the ecosystem findings of the CCI in Tuana, currently some companies have transborder relationships, from access to supplies and knowledge to joint projects. This familiarity and the possibility for personal communications is a great advantage and opportunity, just the fact of being able to drive their personal vehicles to Los Angeles and return in the same day offers possibilities of lower costs. In a similar way professional and social networks of people in the CCI sector are more common everyday and facilitate the internationalization process.

To define a Transborder Internationalization Roadmap in the Cali-Baja region, we will use theoretical concepts from management theory, documentation of best practices in internationalization of enterprises, as well as interviews with experts in the region that have had successful internationalization experiences. In addition, the professional and academic experience of the author

that has more than 30 years of experience in the promotion and management of transborder business expansion projects, as well as a PhD in Global Development Studies.

Internationalization is like starting a new venture and follows the logic of the steps of an entrepreneurship project, with an increased level of complexity. We need to add the challenges of cultural and language differences, the distance, added costs, and different regulatory environment (Laws, regulations, judicial processes, types of advisors)

We highly recommend CCI Audiovisual Media entrepreneurs to carefully review and use the entrepreneurship Roadmap developed by Macedo Cham Consultores previously to using this guide

10 STEPS TO BECOMING AN ENTREPRENEUR

Experts Interviewed:

Beatriz Acevedo

An experienced entrepreneur and digital media producer for over 30 years. In the last 20 years she has lived in Los Angeles, California, and has produced content for Nickelodeon and Discovery Channel among many, obtaining three Emmy awards and one MTV Music Award. She has specialized in the intersection of content creation, media, digital technology, and social impact. In 2012 she founded the digital platform Mitú raising over $50 million dollars in capital. Currently she is Co-Founder and CEO of the Fintech platform, SUMA Wealth, that offers financial education and tools for the Latinx community. Additionally, she focuses on social impact programs, as President of the Acevedo Foundation and participates as a Board Member of 10 non-profit organizations such as LA Collab an initiative to duplicate by 2030 the participation of Latinos y Hollywood, in front and behind the camara

Ramón Toledo:

He is a Digital Media entrepreneur and real-estate developer in Baja California. In 2007 he founded Busca Corp specialized in the creation of digital platforms and content for the Latin American Market. On the best-known platforms is Level-Up that is focused on the Videogame industry, that has been recognized as the leading portal in Latin America in the subject. In 2008 it was named the best of Web 2.0 by the AMIPIC. Through his diverse digital platforms, he has formed international alliances with companies such as Microsoft, Yahoo, Playboy, MVS and others. He has oces in San Diego, Tuana, and Santiago Chile

Joe Unger:

Has over 25 years of experience as a producer and project manager in Digital Media, Videogames, Film and Special Effects. Most of his experience has been in California, currently he leads an experimental program in the creation of virtual environments for the Metaverse, for educational and socialization applications. He has worked as creative advisor for diverse platforms and video game producers such as Spycraft RPG, Lord of the Rings y City of Villians, as well as a producer and writer for companies like Pinnacle Entertainment, Games y Cheyenne Mountain Entertainment. Currently he is CEO of Pigeonhole Productions focused on World Building, New Media & Creative Infrastructure, collaborating in transborder production of digital media between Baja California and the United States.

STEP 1: Am I ready? Conduct a self-evaluation to determine if the enterprise is ready to initiate an internationalization and scale-up process (Craig 2003). These processes require a firm commitment and resource allocation for a period of 2 to 3 years before expecting returns. Typically, businesses that are ready for this process have at least 4 to 6 years of track record and consolidated local market. They have a consolidated leadership team prepared to focus on the internationalization process, minimally in functions of sales, administration, and production (Core Team). In the case of Audiovisual Media, production refers to the creative skills and capacities, process of production and quality control.

The self-evaluation may begin by the following questions:

a) Is internationalization a clearly defined strategic objective of the enterprise?

b) Does the enterprise have stable income sources in the local market that will enable them to invest in the internationalization process?

Oferta de Valor

Segmento de Mercado Modelo de Negocio Estrategias de Entrada

INTELLECTUAL PROPERTY REGISTRATION

• World Organization of Intellectual Property (WIPO). Part of the United Nations, focused on the education of protection of human intellectual works.

(https://www.wipo.int/portal/en/) (QR1)

• Mexican Institute of Industrial Property (IMPI). Part of the Ministry of Economy of the federal government of Mexico. In charge of supervising and coordinating the implementation of the Federal Law of Industrial Property (LFPI).

( ) www gob.mx/impi (QR2)

• National Institute of Author Rights (INDAUTOR). Part of the Ministry of Education for the Federal Government of Mexico. In charge of the protection of property rights of authors based on the Federal Law of Authors Rights (LFDA). ( )www.indautor.gob.mx (QR3)

STEP 2: Rearm your Value Proposition

Autoevaluación

c) Does the Enterprise have a level of organization and operational systems that will enable to distract their Core Team from their regular functions and focus on the internationalization process?

Asignación de Recursos

d) Does the Enterprise have financial reserves to invest in the internationalization process for a minimum of one year of the implementation budget?

e) Has the enterprise secured their Intellectual Property? Are the authoring rights registered in Mexico and are they valid in the United States?

f) Has the enterprise documented their capabilities, track record, portfolio of product and services and competitive advantages?

g) Has the Enterprise defined and secured the Team (key people) that will lead the internationalization process?

Answers to these questions should be a clear yes. If the enterprise is not in a situation to comply with the requirements, it should consider focusing on achieving these benchmarks before initiating the internationalization and scale-up process. It may be helpful to review the Entrepreneurship Roadmap proposed by Macedo Cham Consultores.

In the internationalization process enterprises need to clearly understand that the needs and preferences of the external markets will not be the same as their local experience. Cultural differences, scale of the market and regulatory frameworks will have an impact that they need to understand to rearm their Value Proposition. It is necessary to evaluate the Value Chain of the selected market segment and asses their core competencies in detail to ensure market fit and design their product and services accordingly.

Value Chain Analysis: In the case of the Audiovisual Media subsector (Digital Media) the California market has a very different scale than that of Tuana or Mexico in general. Enterprises need to understand the entire ecosystem of the industry, who are the key players, what level of specialization they have, how do they interact and generate value together. From this process they should determine the level of integration of their products and services and identify if there is a hyperspecialized value network where their core competencies can be complementary to the existing value model.

Example: https://www accenture com/usen/insights/software-platforms/media-platforms-valuemap (QR4)

Understanding our Core Competencies (fundamental skills): By discovering a Value Chain of a broader scale and the level of specialization of each element (link), we need to explore if our value proposition has elements of integration that are not necessary, and we can focus in our most fundamental skills (Core Competencies). What are we exceptionally good at? What unique capabilities, experiences, processes, or market knowledge differentiate us.

With a better understanding of the value chain and their core competencies enterprises can reevaluate and clarify their Value Proposition, this is the starting point to developing new markets.

STEP 3: Market Selection

In the internationalization process, enterprises need to evaluate what are the most attractive and operationally viable markets (Countries/regions). This Guide focuses on the internationalization within the region of California and in particular Southern California. Even with this narrow geographic region, the market is extremely large, in the hundreds of billions of dollars. It is necessary to identify the market segment of the CCI that enterprises pretend to serve, what is the NICHE that we will prioritize?

Market Research: Before implementing any promotional activities of their products and services it is important that enterprises know closely how the market works. They should assess the potential demand for their products and services, the preferred attributes (evaluate competitiveness), and prices. This research can be by observation, survey or acquiring specialized industry reports.

Immersion and market observation: The geographic proximity of Tuana to the Southern California market enables enterprises to spend time exploring it systematically. Entrepreneurs of audiovisual media should take advantage of networking events, conferences, and expositions in the area, to start building their networks. Many of them are open to the public or through business associations. For example, https://www.eventbrite.com/d/calos-angeles/digitalmedia/ (QR5)

Define your Niche Market: Identifying the specific market segment is apriority to enter the market. Based on the intelligence obtained in the market research, enterprises need to define the market segment where their core competencies and value

TIP #1 by Joe Unger:

You must take into consideration that to obtain results it will require a minimum of 18 months; businesses must be prepared financially for this level of investment. The first 6 months to learn how to correctly communicate your value proposition, your skills and production capacity. Next 6 months to NETWORK, knock on doors and follow-up. The last 6 months to produce. It is an iterative process of adjusting your portfolio of capabilities (“Product Suite”), based on the responses of clients, and adjusting to the accelerated rate of technological change and the immediate demands of consumers (“Market Fit”).

proposition will be most compatible. This will enable enterprises to focus and prioritize the use of resources. Without a doubt entrepreneurs will identify many markets they could serve, eventually. Hyper specialization can be the way to enter the market, keeping flexibility to adapt to the responses of the market.

Analyze the competition: Once they have selected their market segment, it is very important to understand who is our competition, and what differentiates them. Understanding their competitive attributes will enable them to differentiate their value proposition focusing on adding value. Among those competitive attributes can be price, but it is not enough. What other competitive advantages can

hey find?

A recommendation would be to consider a Blue Ocean strategy, finding markets where there is low levels of competition, where they can have a clear differentiation. A useful tool would be to take a course on the Blue Ocean model: https://learn.blueoceanstrategy com/blueocean-strategy-online-course (QR6)

Tip 2 by Joe Unger:

Today there is an accelerated rate of consolidation in the digital distribution channels, large platforms such as Disney, Amazon and Microsoft lead the value chain. This makes it crucial to establish alliances with the chain of subcontractors and App developers. At the same time there is an explosion of content producers, just in Spotify thousands of songs are published every day

Tip 3 by Joe Unger:

A fundamental capability that needs to be demonstrated is Collaboration. Creative projects are highly collaborative, those who lead efforts are looking for partners that can demonstrate their ability to integrate with others, contribute and collaborate towards results. Also learning capacity and for constant reinvention are key skills for demonstrating ability to take on new projects.

Tip 1 by Ramón Toledo:

Selecting a niche market is fundamental. The Hispanic market in the United States has great potential and its particularities. For younger Latinx’s content should be in English (even Spanglish). It is important to incorporate in your development team people from this community, ant take advantage of the geographic proximity spending time there, learn the business practices and negotiating models; you must be present.

STEP 4: Defining the Business Model

The internationalization process starts by defining the level of international exposure, from exporting directly to selected regional markets, to having operational capabilities in multiple countries levering the competitiveness of each. The higher the level of internationalization, the higher the complexity and the risks, as well as the potential long-term rewards. In the internationalization process it should be very clear how the enterprises intend to earn income

Tip 4 de Joe Unger: En la selección de nichos de mercado pensar en aplicaciones alternas al entretenimiento, como la educación y la capacitación empresarial. Hay una gran demanda por el uso de nuevas plataformas como la Gamificación, Realidad Virtual, Realidad Aumentada y el Metaverso. Sectores como los servicios médicos, bienes raíces, parques de diversión o manufactura avanzada. Una idea de negocio podría ser ofrecer servicios de VFX y musicalización para Blogueros.

Business models in digital media should not only consider income from advertising, as every day there is more competition and consolidation by large platforms such as Google. They should integrate e-commerce and contextual marketing of products and services. For me, one of the most productive revenue sources is as an aliate of Amazon and other e-retailers. Always focus on monetization

Low Exporting a finished product directly to consumers.

Exporting finished products through commercial partnerships, distributors, and platforms.

Supply chain integration in production processes, strategic alliances, and services supply.

Joint ventures and investment in production capacity and distribution in the target market.

In general terms for the Audiovisual Media subsector in California, enterprises should consider the following basic business models:

Services: This business model focuses on integration with the value chain of the sector, offering production services and logistics to existing participants. This model is highly viable as an entry strategy to the new market, although less scalable in the long term as the increase in sales has a proportionate effect on investment to increase production capacity. Enterprises may achieve certain level of economies of scale based on their processes, tools, and Artificial Intelligence (Automation).

Product: This business model is related to the distribution and sale of finished creative products, that is the sale of intellectual property or licensing of content. It may be as products for distributors, or directly to consumers via digital platforms. This model implies higher risk and investment in the beginning; however, it has the potential for scalability and higher returns based on market fit and consumer responses at a global level.

NOTE: The internationalization of digital products does not require necessarily a process through the Southern California market, it can be achieved directly through digital platforms, such as Youtube com

Tip 2 by Ramón Toledo

a. b.

TIP 1 by Beatriz Acevedo

As an entry strategy I recommend via production services, the talent in Baja California is first class and very competitive (Quality and Price). Enterprises should invest in a good “product demo”, make clear their production skills and abilities, their track record of projects and collaborations, especially with any well-known production companies. It is very dicult to enter the market with finished product, consumer preferences change to quickly and fluid. Today there is a great demand for technical skills, not just the creative abilities of telling a story technical skill such as 3D animation, photography, set design and wardrove are very much in demand. As well as user interface development for platforms, UX/UI, Data Analytics and AI.

STEP 5: Define the market entry strategy.

Once enterprises have defined their business model and value proposition, as well as their market segment (niche), then they must define their “plan of attack” to enter the market. At this stage of the internationalization process the focus needs to be on sales and marketing, in positioning the company. Here is where the key team member in charge of sales and marketing has the lead and should establish the channels and strategy of communication. It is not recommended to spend resources in advertising or publicity at this stage

a) Documenting the Product Suite (value proposition). Develop communication tools (Website, videos, social media), that will clearly position the competitive advantages of the product-service offering. Include the portfolio of capabilities, projects track-record, awards, testimonials of customers. Being the Audiovisual Media sector, take this opportunity to show-off your creative skills.

NOTE: It is important to have the support of a qualified English translator and ensure the correct grammar and syntax. You want to avoid mistakes of literal translations and losing the true meaning of the message.

b) The Pitch: It will be very useful to develop a very short and concise presentation of your value proposition. I less than 5 minutes you should be able to what problem you are trying to solve and how you can solve it better than others. Your Pitch should have a 30 second “elevator pitch” to attract the interest of potential customers, partners or investors and you can use in your networking efforts.

Tip 2 by Beatriz Acevedo

Personal contact networks are a good way to promote your capabilities. If you have relationships with the Hispanic or Latino business and creative community, it is important to consider that their priority is to provide opportunities for those already in California. You should be sensitive to not promote a model of exporting jobs to Mexico.

c) Networking: A fundamental entry strategy to the California market is by using your network of contacts and building upon them. The geographic proximity of Tuana to Southern California allows entrepreneurs to gradually develop a presence and build new relationships, without a significant financial investment. This network will not materialize by chance, you need to have a plan, and focused efforts on our selected market segment, leveraging existing binational relationships, and systematically asking for references to other contacts.

d) Alternative routes: There are many economic sectors in Tuana that have extensive cross border relations that can be leveraged as well. For example: The export manufacturing sector requires digital design for training manuals, videos or for customer services, through that market you may get references to other subsidiaries, suppliers, or customers in California

Tip 3 by Beatriz Acevedo:

A better strategy is to promote the capabilities in Baja California as a whole. This could be an opportunity for scalability by itself. Develop a promotional web-portal, with a catalogue of capabilities, products, and services. Make it a “pull” and not a “push” process for the production companies in California. Possibly with the support of government agencies of Mexico. This way producers in California can search and find the capabilities they require

Tip 3 by Ramon Toledo: Take advantage of regional experiences and local markets by offering digital media services to sectors such as Medical Tourism, coastline Real Estate development, and Wineries. Think about potential customers in Latin America and other parts of Mexico, levering the bicultural capabilities and knowledge of U.S. business practices, as well as the local experience and production capacity. The same capabilities can be offered to California businesses interested in entering the Mexican and Latin American market.

STEP 6: Planning and resource allocation

Once enterprises have clearly identified their market segment, value proposition, business model and entry strategy, then they are in a position for the allocation and commitment of resources. Only if they have secured and aligned the needed resources then it is feasible to execute the internationalization plan.

The Team: Enterprises should have identified

and secured the team that will execute the internationalization process. The most fundamental members are the sales team, production (creative team) and administration. The sales team should be who leads the internationalization process. Enterprises should have people with experience and with the correct skills to focus on promotion and sales. The team members should speak English professionally and should know best practices in business protocol (understand cultural differences). Professional courtesy, ethics and assertiveness should always be observed. Establishing appropriate expectations and timely follow-up to any commitments are key Always keep open communications, even if you don’t have the answer, keep the dialogue going with transparency

Technical Resources: Enterprises should secure the necessary technical resources to deliver on their value proposition. Secure the tools, equipment, and infrastructure necessary. As well as the legal resources for the protection of intellectual property and legal counsel that specializes in contract negotiations in the Entertainment and Digital Media sector.

Financial Resources: As the human and technical resources, enterprises must secure sucient financial resources to fund the internationalization process. This is a new business development phase the same as the start-up of the Enterprise, it requires time to build-up opportunities, at a minimum Enterprises should expect a 12 to 18 moths to start generating revenue. Enterprises should develop a budget and financial model considering all costs of the promotional efforts, from travel expenses and production of promotional material to initial production costs of new projects, salaries, and other public relation expenses.

Tip 4 by Ramón Toledo

From the operations perspective, you need a strong production team to internationalize, you need to be careful with talent retention offering participation in the business to your key team members. In my case I have awarded stock options in the U.S. based company. It is very important to have a good legal advisor, with experience in the entertainment and digital media sector in the U.S., for contract negotiations and enforcement, intellectual capital protection, including trademarks for your brands.

5 by Joe Unger

The technology is fundamental, today digital media production is mostly driven by new development tools. It is important to be flexible and adapt, and at the same time focus on 2 or 3 specific skill sets. The use of development platforms such as AltSpace, Unity Technologies, Adobe After Effects, and others, is key

STEP 7: Executing the internationalization plan.

In the implementation of the trans-border internationalization plan the focus should be on business development, promotion, and sales. Enterprises should prioritize efforts to develop relationships, networking and establish a system of timely follow-up and documentation. Establish specific goals, at a monthly or weekly for new contacts, presentations, conversion rates to proposals and deal negotiations. Every networking or promotional effort should have a goal, minimum to obtain new contacts, referrals, invitations to events, meet-ups, or group sessions.

Once there is interest in your services and new project opportunities come up, it is fundamental to comply with any commitments or promises made, before making any additional commitments. Every project will bring other opportunities closer if we have satisfied customers. The digital media and entertainment community is relatively small and can easily communicate for references of the quality of work and fulfillment of commitments. In the same way successful outcomes should be promoted, updating the portfolio of capabilities and experiences, as well as boosting media coverage of achievements and recognition of all that participated.

Look for mentors that can provide advise and feedback. The networking process should include goals for identifying and recruiting people with experience that can advise and provide objective and candid feedback and can provide references to key resources. A good goal would be within the first 12 months to have 3 to 5 mentors from diverse technical and business backgrounds (promotion, technology, negotiation, production, finance).

Tip

Tip 4 by Beatriz Acevedo

For younger generations of Tuana creatives that have the dual citizenship, they should take advantage and establish production companies in California, and become part of the Latino community, even if they continue having their production in Baja California. They should focus their efforts on integration and management of projects. Focus on public relations with established production companies and distribution platforms.

STEP 8: Monitoring and Control.

The internationalization process is iterative, trial and error, it is fundamental to establish a system for monitoring and evaluating the achievement of goals, as well as monitoring of setbacks and challenges to learn from. Flexibility and adaptation are central abilities that should be developed, starting by closely listening to clients and project partners. It is recommended to use a customer relationship management tool (CRM) to keep track of all new relationships and their interactions with the Enterprise. (Such as )https://www.salesforce.com (QR7)

At this stage it is important the participation of the administrative team. They should be prepared to process contracts, invoicing, trans border payment systems for collectibles and supplier commitments. Establish the legal and fiscal resources in California, be ready to establish a corporation in the US, such as a C Corp or LLC, depending on the advice of local experts.

A valuable resource for support on setting up a new company in the U.S. is the Small Business Administration or SBA (https://www.sba.gov/guia-de-negocios/lancesu-empresa/ela-una-estructura-comercial) (QR8). Another resource is the State Government of California oce for business services (https://www.sos.ca.gov/business-programs/businessentities/starting-business) (QR9).

STEP 9: Accelerate the Model

After a reasonable period of 12 to 24 months, the internationalization strategy should be evaluated. Asses the business model and determine if the goals of the plan have been met and identify what has worked well that can be replicated with additional financial resources. With a clear successful track record and refined value proposition, it is feasible to look for qualified investors in the sector.

Depending on the scale of the business opportunity that has been identified, the level of investment can be defined. If the required funds are less than $2 Million dollars, it will still be considered seed funding, but if the opportunity for scalability is very clear and requires larger amounts of funds up to $10 Million than a professional growth investment fund should be approached.

In the case of seed funding the recommendation is to contact Angel Investor networks, such as the LA Angel Investor Network (https://www.angelinvestmentnetwork.us/angelinvestors-los-angeles) . For larger funding (QR10) opportunities, the recommendation is to contact Venture Capital groups through investor networks such as the LA Founder Institute (https://fi.co/insight/losangeles-startup-funding-options-for-every-stage-ofyour-company) .(QR11)

STEP 10: Document and replicate.

Leverage local experiences and established networks. Tuana has a successful track record in the Entertainment and Digital Media sector. Search for those who have made progress, collaborate with them, and expand your network. Leverage the unique culture and identity of the region.

Cali-Baja es cómo aprender a andar en bicicleta con llantitas, ya que lo has dominado estarás listo para un proceso de internacionalización con un enfoque Global. Documenta lo aprendido, afina tu propuesta de valor y vuelve a iniciar el proceso en nuevos horizontes. Comparte lo aprendido con otros y contribuye a

La internacionalización transfronteriza en la región que se replique el éxito.

The fluid change of consumer preferences, the accelerated evolution of new technologies and development capabilities requires that Enterprises have the ability and the practice of successful collaboration. Networking and strategic alliances are fundamental.

Summary of in the transborder Keys to Success internationalization within the Cali-Baja region

1. Start from the local experience

2. Collaborate

3. Integrate technology

Audiovisual Media (Digital Media) is tightly linked to technology tools of production and management of information, including process for programing and data storage, as well as data transfer, artificial intelligence, analytics, and Big Data. It is fundamental to have partnerships, or the technical resources integrated. The most promising segments are Videogames, VFX, US/UI, VT, AR and the Metaverse

4. Focus

The Digital Media value chain is very broad and diverse, it demands high levels of specialization and proficiency of processes. Enterprises should focus on their core competencies and differentiators, not try to do everything.

The internationalization process is a marathon not a 100m dash. It is a permanent learning and iterative adjustment process. The team and allocated resources should be prepared for a minimum effort of 18 moths.

About the Author:

A specialist in Economic Development, with over 30 years of practical experience in the promotion and management of trans-border business and economic development projects in the binational region of San Diego, California and Tuana, Baja California. Entrepreneur and promoter of clustering initiatives in areas such as Information Technology, Medical Tourism and Manufacturing. He is certified by the International Economic Development Corporation (IEDC) and has a PhD in Global Development Studies from the State University of Baja California

References:

Buitrago, F y Duque, I. (2013). La economía naranja. Una oportunidad infinita. Banco Interamericano de Desarrollo.

Cateora, P.R., Gilly, M.C., Graham, J.L. (2011) International Marketing, McGraw-Hill/Irin, 5th Edition

Craig, C.S., Douglas, S.P. (2003). International Marketing Research. John Whiley & Son. Third Edition.

Hernández-Acosta, J. (2020). Emprendimiento creativo. San Juan: Inversión cultural

INEGI Sistema de Cuestas Nacionales de México. 2020

Macedo Cham Consultores (2022). Manuel Para Emprender. Tuana Innovadora – CIPE.

Otis College of Art and Design. Report on the Creative Economy 2021

Redondo Méndez, A.C., Pinzón Muñoz, C.A., & Ospina Martínez, O. M. (2020). Internacionalización de emprendimientos culturales de Latinoamérica. Podium, 38, 87–104. doi:10.31095/podium.2020.38.6

Rodríguez, L. (2018). Economía creativa en América Latina y el Caribe: mediciones y desafíos (Nota Técnica Nº IDB-TN-01488). Banco Interamericano de Desarrollo DOI: http://dx.doi.org/10.18235/0001308 (QR12).

Sánchez, J., Moncada Garibay, J., Sosa Aramburo, M. (2022). Camino a la escalabilidad para las industrias culturales y creativas integrando tecnologías digitales. Tuana Innovadora – CIPE - CETYS Universidad.

5. Persistence

Dr. Flavio Olivieri

Road map to scalability of cultural and creative industries integrating digital technologies

Before you begin

Dear reader, these pages are derived from several creative professionals’ experiences reflecting on the routes they followed for developing outstanding projects whose scaling and technological integration characteristics acted in favor of their diffusion and sustainability. At the same time, thinking about the successes facilitated recognizing those projects that failed to mature, although they left valuable lessons learned and become inputs for subsequent iterations.

But first, let’s introduce the basic concepts adopted in this roadmap.

Acceleration: refers to the economic and operational growth of a company derived from an acceleration process that, as a result, achieves an increase in productive capacities and increases in their market share, which finally translates into an increase in profits.

This document presents examples of acceleration and scalability strategies from companies in the cultural and creative industries. By sharing insights, this document aims to guide you through accelerating and scaling your own business.

The work documents thirteen essential steps followed by cultural and creative projects in Tijuana. These steps also integrate the route many entrepreneurs utilize within innovation, creative, and technology companies. The similarities and variations in these paths can be explained by the sectors from which they emerge.

The presented roadmap is a living entity that may have design variations in the face of technological, social, and economic changes. It is suggested to make adaptations following the specificity of your own business. Working with the guidance of mentors or certified accelerators will yield the best results.

The arts and crafts and fashion activities generate tangible products, while music, dance, and theater spawn events in a specific place and time. A situation shared by these sectors is that traditionally their modalities of exchange had required co-presence with their audiences. This condition is indispensable in some cases, such as live music or the performing arts.

However, audio and video recordings have made it possible to share these experiences and generate markets, as in the case of the music industry and streaming platforms. On the other hand, arts and crafts and fashion have resorted to visual communication to share their creations with the help of digital media. However, events and exhibitions are still key channels for their commercialization.

During the analysis of methodologies and conversations with creative professionals, the role of digital technologies was highlighted as an essential part of the scaling of companies. Among the most notable benefits is its use in administrative processes, which allows it to make specific processes more efficient or reach larger audiences at affordable costs through digital platforms.

Agile methodologies in the development of startups

Agile methodologies are a great way to develop a startup. The agile approach is based on the idea that any product can be developed in a series of small iterations instead of a single significant development. Agile methodologies have been around for years, but only recently have they become popular for startup development.

The main advantage of the agile approach is that it allows you to test your product with real users and find out what they like and dislike as early as possible. This means that

you can make changes to your product based on feedback from real customers before wasting time building things that no one wants or needs.

Many startups use agile because it allows them to make modifications quickly if something doesn’t work or no longer makes sense. Changing directions is vital to a headstart in the right direction.

Are you ready to begin the journey?

13 Steps for scaling up activities in the cultural and creative industries

ROADMAP

1 ROAD VISION

This is a crucial step in driving your scaling process. The goal is to define the purpose of your company, along with a concise description of the idea that inspired it. By identifying your original audience (early adopters), you will be able to narrow down your market opportunities. A SWOT analysis also makes it easier to recognize the strengths and weaknesses of the scaling project and set realistic goals for the future.

3 CULTURAL AND CREATIVE SCALING CONCEPT

The design framework for innovations offers different innovation modalities that you can explore and put into practice. These tools are useful to qualify your current innovation, as well as to create a new one. It makes it somewhat easier to detect errors of omission or missing dimensions that need to be reinforced in your scaling concept.

5 BUSINESS MODELS FOR THE ICCs

This step consists of understanding and defining the strategies on which your company creates, delivers and obtains value. To this end, it is necessary to consider the use of technologies for scaling and to know the different patterns of business models, monetization strategies and determine the definition of prices.

7 INTELLECTUAL PROPERTY REGISTRATION

The purpose of this step is to provide relevant material for creators and managers of cultural and creative enterprises, in order to increase their management skills and their ability to care for and expand their assets. It also serves as a tool to understand the specificity of the creative market and the main difficulties faced in terms of intellectual property asset management.

10

MARKETING AND PERSONAL BRANDING

Define your marketing plan to effectively launch your creative business and position it in the market. Likewise, developing a personal brand is fundamental to identify yourself, attract new clients and increase your audience.

11 OPERATIONAL REDESIGN

To successfully scale a project you must direct all efforts towards its growth. The objective is to accelerate the business to grow faster than the competition, take advantage of market opportunities and deliver exceptional value to customers by defining a customer-centric acceleration plan.

13 CREATIVE PITCHES

An important key to having a great pitch is to communicate your story clearly and concisely, emphasizing the core elements along the roadmap. These are: vision, problem, product or service, business model, team, market, financials and growth rate. Close with a call to action for your target audience.

CONNECT WITH YOUR AUDIENCE

In this step you will learn to define the concept of cultural and creative scaling. You will also develop a positioning statement to describe your company from the customer's perspective. Last but not least, you will analyze your competition and develop a differentiation matrix.

4 INNOVATION DESIGN

The framework for innovation design offers different modalities that you can explore in order to set them into practice. This tool is useful to qualify your current innovation, as well as to create a new one. It makes it easier to detect errors of omission or dimensions that need to be reinforced in your scaling concept.

6

CREATIVE CATALOGUE DEVELOPMENT

This is an important step for the sustainability of any project and to increase its impact. Document your catalog by identifying the different projects and activities you have carried out; with this basis you can measure and analyze their results. Take advantage of digital technology to publicize your cultural or creative offerings.

8 CREATING MARKETS FOR CCIs

To create opportunities, techniques such as Blue Ocean are applied in search of uncontested spaces. It does not mean to eliminate threats from competitors, but to compete with appropriate strategies seeking differentiation through the generation of added value.

9 IDIGITAL TECHNOLOGIES IMPLEMENTATION

Creative agents must leverage their core competencies (innovation, creativity, artistic skills) by implementing digital technologies to create new revenue streams, communication channels to engage with their customers and increase their scalability.

12 FINANCIAL STRATEGY MODELING

Define your company's financial model, economic metrics oriented to audience retention and apply cost engineering to your scaling project. In this step, it is recommended to explore sources of public, private and mixed funds.

1: Road Vision

This is a decisive step in laying out the scale up process. The goal is to define the purpose of your company, along with a concise description of the idea that inspired it. By identifying your native audience (early adopters), you will be able to define your market opportunities. A SWOT analysis will help determine the project's strengths and weaknesses and set realistic future goals.

It is crucial to differentiate between a business idea and the planning needed to accelerate or scale up a company. Let us consider the starting point of people within the field of culture and creativity. We will find the experiences that attracted them to their activity: from an early introduction, the fondness for a particular artistic expression, an innate predisposition, or the cultivation and refinement of a technique, which leads to virtuosity, be it musicians, dancers, actors, artists, and artisans. However, we will consider this provision as an initial condition for professional orientation in the field.

To stay on track, you will need perseverance and road vision; this step has also been called strategic planning. Thus, management studies can benefit careers and companies in the arts & culture. We addressed professionals in the cultural and creative industries who have sustained over time to find out: How did they become aware of the need their service or product could provide?

Abelardo Vázquez is currently a music producer and was part of a band in his early career, which a recording company almost signed. Still, the experience allowed him to identify the kind of preparation and the elements that any musician must have ready to make the most out of such an opportunity.

Roughly speaking, we refer to the creation of songs that will be distributed in search of economic gain. Similarly, artists must develop skills and attitudes to sustain success and endure despite the ups and downs of an artistic career. Consequently, Abelardo focuses on musicians' creative direction and integral development under a mentoring scheme Incidentally, mentors can aid in developing this step. Similarly, it is worth noticing that most of the study participants mentioned that in their initial phases, they took on the task of studying, taking advice, and actively sought to connect with members of the local creative and cultural ecosystem (for different reasons).

It is recommended, as Abelardo does, to share criteria based on careful observation of cultural and creative ecosystems at the local, national and international levels. Subsequently, with this information, a SWOT analysis can be carried out that will help you diagnose your company's current situation and support making decisions based on the vision you have defined.

SWOT incorporates four key elements of the planning process: Strengths, Weaknesses, Opportunities, and Threats. The letters F and D represent internal variables of the organization upon which is possible to take action. At the same time, O and A are external or contextual, which needs consideration to achieve the strategic goals.

In additon to the SWOT analysis you can expand your research on cultural, creative, social and economic trends. To find examples of this type of companies in Latin America (LATAM), we recommend a book by Luzardo and Fundes (2019) published by the Inter-American Development Bank.

Interdisciplinary road vision and complementary aspects

A vital resource is the network of allies and sponsors that can strengthen your company and help you sustain the effort. Guillermo García, the cofounder of Erizo Media, created an agency to promote independent music by integrating the resources of artists and suppliers and constructing links with local and state governments. At the same time, keeping audiences connected is critical, achieved through digital platforms, virtual communities, and other media.

Guillermo says to start a company within independent culture: "you have to be a rocker or very audacious, but also professionalize the administrative and communication processes with customers and suppliers"

Due to the above, many creatives have chosen to prepare themselves in these complementary aspects. Others choose to integrate personnel with business skills, integrate collaborative teams, or seek mentors as they scale up their projects. The participants in this study stressed the relevance of giving due importance to these aspects since they allowed them to generate financially sustainable business plans. When they omitted this

perspective, their results were not what they had projected. Therefore, you will need to learn and refine your business skills as you head towards scalability.

Accelerating with a defined direction is pivotal to ensure we reach the desired goal. We call this direction road vision.

2: Connect with your audience

Understanding the needs, your consumers seek to satisfy and what they hope to achieve through your products and services is essential. Therefore, collecting feedback to improve your company’s design or value proposition is recommended.

Entrepreneurs in the CCI implement strategies in response to their audience or market. For example, the Escobedo Sisters, which operate Conservatorio de Danza México, had to adapt an educational program in response to generational differences among the dance students. As expressed in their own words: “in our time, dedication to artistic preparation was total, while today’s students seek a balance between their personal life and rehearsal (which is fine, and of course, we are concerned about the well-being of our students); we have also observed a tendency to immediacy. In the entertainment industry, it was said that the show must go on, while now, the function must sometimes stop; a result of balancing professional duties and personal life”. In this case, developing empathy with student needs helped them to consolidate an academic and business model suited for today’s world.

Obtaining valuable information is critical to validate or correcting a business idea. For this, you must listen to the audience. The goal is to capture the client’s point of view. To avoid biasing the interview with our preconceptions, prepare open questions. You can start by asking about a particular product or service. How has it been helpful to you? What do they usually do with it? Try being specific with time. For example, When do you prefer to use it? If it is an event, you can say, When was the last time you attended? What day or time is it easier to be there? You can even ask for suggestions for improvements, such as: What don’t you like about the service or product? What would you change about a particular experience? How much are you willing to pay? With this information, you will

inform a detailed vision from the point of view of your audience or consumers.

Benito del Águila, the founder of the Rosarito Art Fest, started his project with online sales utilizing a ubiquitous platform: “At that time in eBay you could find collectors of anything, from baseball cards, PEZ cartridges, Star Wars figures and within all of that, there was a niche for Mexican folk art.”

He realized the opportunity for this type of product, so he traveled and met artisans in Mexico to upload their work to the internet or commission pieces based on printed catalogs and consumer trends. The platform allowed him to generate a database of customers to whom he could send promotional emails for new products or place orders. Most e-commerce applications facilitate communication with the final consumer, generally, a natural person, known as B2C (Business to Consumer), but also between companies or B2B (Business to Business). Do maintain fluid, constant and respectful communication with your audience will yield better decisions. Additionally, mobile applications generate information on consumer behavior, generating inputs that can be contrasted with the data from the interviews.

This step demands the direct involvement of the entrepreneur. However, you can collaborate with other experts, such as marketing consultants, or depending on the case, sociologists, anthropologists, web developers, and cultural managers who can help you better understand your audience and establish meaningful connections for the sustainability of your business.

3: Cultural and creative scale-up concept

In this step, you will learn to define the scale-up concept. You’ll also prepare a positioning statement to describe your business from a customer’s perspective. Lastly, you will analyze your competitors and create a differentiation matrix.

People are busy in their daily lives while constantly swamped with advertisements and hardly pay attention to new products or services that are irrelevant to them. To catch their attention, your scale-up concept must be

notable and remarkable, something worth talking about within your circle of influence.

Author Seth Godin, who wrote Purple Cow, states in his TED talk: “Since competition is fierce, you must create something remarkable to succeed. We tend to talk about products that are remarkable that are worth appreciating and recommending. These would be new concepts, that are exciting, or exceptional"

You must ask yourself a question: What does make my concept remarka

For example:

Pinterest - The catalog of things you love Behance - Get free exposure for your designs

Spotify - All the music in the world at your fingertips

To help you craft your scale-up concept, utilize these guiding questions and build a strategy to pin out these elements.

1. What is unique about your product?

2. How do users describe your product?

3. What are you helping people achieve through your product?

4. What feature or functionality of your product catches people’s attention the most?

Finally, we recommend that you keep up to date with current developments, work in a differentiation matrix, and identify your competitive advantage over your competitors. Get inspiration from Rachitsky’s article (2022a), and check out examples of today’s most successful companies like Pinterest, Netflix, Tinder, Dropbox, DoorDash, Robinhood, Amazon, and WhatsApp.

4: Innovation design

The innovation design framework offers different strategies you can explore and implement. These tools will help you rate your current innovation or create new ones. To a certain extent, it facilitates the detection of omissions the dimensions, which will need to be reinforced to scale-up your concept.

Many companies only focus on improving their existing products without considering possible innovations in other areas that are seldom explored. Regarding these aspects open a key to design innovations.

The innovation design framework is structured in three main categories: configuration, offer, and experience, and within these, different innovation modalities are possible. Ahead you will find a brief description of these concepts.

Innovation within the configuration of the company

This type of innovation regards the configuration of the company. It can target organizational methods, business structures, and business models or enhance collaborative networks, to add to the value proposition or strengthen the processes behind the products or services you offer.

ttInnovation in the company’s offer

It is related to the product or service, including traditional product innovations. It represents the opportunity to offer new products and services that captivates and delights customers. Its mission is to create something new, at the same time, contribute to the market ecosystem with integrated production systems.

Innovation from the customer experience

Everything related to how value is delivered to customers; includes a combination of brand, value proposition, and innovation in service delivery. Consider what experiences and channels enable you to engage with your audience.

There are different methodologies to help determine which areas of innovation to target. Implement strategies that suit your purpose; these can be: Design Thinking, Scamper, and others.

For example, some companies organize hackathons to find possible solutions to their identified challenges. Sometimes, organizations invite children to aid them in finding new solutions, often with surprising results.

There are specialized university and graduate programs in the Tijuana and San Diego region for entrepreneurs looking for academic alternatives to develop their innovation skills.

5: Business models for CCIs

This step involves laying out your company’s strategies to create, deliver, and obtain value. You will learn different business models, monetization strategies, and price definitions. Utilizing technology will facilitate these processes.

In other words, it will help you define the strategy and select the tools to align your business finances with your growth goals. Understanding the role that technology plays will help you integrate business strategies and develop a network of activities and resources to aid with scaling up your company.

But what is the difference between a business model and a business plan?

According to Osterwalder & Pigneur (2014): “The business model is a simplified representation of the company’s logic, how the company creates, delivers and captures value.”

Again quoting Osterwalder & Pigneur (2014): “when you have designed and thought through your business model, you will have the perfect foundation for putting together a good business plan.”

Suppose you did not previously have a structured business model. In that case, this is the time to thoroughly review your costs (those associated with the creative or cultural process, operational, administrative, logistical, and legal such as copyright, etc.) and sources of income.

You must consider tax and accounting requirements. If you are not an expert, please consult an expert to frame your business model, considering the regulatory frameworks of the markets you are operating or intend to enter. Legal and financial feasibility is essential to thriving in business.

Suppose you are exploring a new paradigm for doing business in which no previous example exists. In that case, you will face greater risk and uncertainty, in which case, you should start by determining your business model and afterward plan to scale up with a business plan.

Now, it is essential to consider the nature of your activity; is it a non-profit or a business? Cultural projects tend to lean towards non-refundable investments, which is challenging to scale up. Experts commented that it is increasingly difficult to access public funding and subsist with donations, so they have begun to migrate to models that generate profits, allowing self-investment and managing private investment.

The CCIs are a crucial sector for the economic development of Tijuana; however, their business models are mostly based on traditional structures such as sales and distribution in physical spaces, pricing based on a percentage of retail, and other conventional schemes. These aspects and the transformation of consumer behavior are making these sectors unprofitable or even obsolete.

This step aims to identify the best way to create value with your product or service through a specific business model and to design a solid and effective value proposition. The main challenge is to develop a strategy that allows you to be profitable while remaining competitive in the market.

To meet these challenges, some companies have begun experimenting with new ways of creating value with innovative business models. There are many alternatives: free online services with a premium scheme, such as the freemium business model, free payment schemes to define by the audience (pay what you want), and gamification mechanisms based on reward systems. There are collaborative exchange platforms where users can exchange goods or make them available to third parties, such as the sharing economy, and even collective financing models through digital media (crowdsource).

In addition to the examples provided, you can study other business models to integrate the most functional elements and design your own unique, competitive, and scalable business model.

A recommended reading is the book Learning Entrepreneurship (Castro, R. et al., 2017), particularly chapter 13, Entrepreneurship in electronic commerce. Why is it a good idea to think about marketing your product in e-commerce? (Jáuregui, 2017). We also recommend informing yourself about technological megatrends, such as the metaverse, augmented reality,

and immersive reality, to detect possible opportunities for your business model, given that there is potential for cultural and creative industries.

Finally, the Business Model Canvas is a practical tool for envisioning this step. There are many manuals to assist in generating a graphical representation of a business model. Review chapter 5: The essence of planning in the book mentioned above. Managing business models (Moncada, 2017).

6: Development of a creative portfolio

This is essential for any project's sustainability and increasing its impact. Create a portfolio by documenting the different projects and activities carried out; having a record of creative endeavors is pivotal to measuring and analyzing impact. Use digital technology to make a creative catalog available to a public audience.

Keeping an updated catalog is a critical asset for any company, especially in the field of creativity. Successful marketing firms keep a record of meetings with clients and copywriters for various reasons; on the one hand, it is the log of a creative project; on the other, the same notes can be the basis for new projects. So keeping an organized file will be an asset to a scale-up project.

A well-organized portfolio allows one to make presentations, retrieve projects, and create new ones. Create content for social networks or build an online store based on a comprehensive repository. Expand the possibilities by having your file at hand. By documenting your work and trajectory, you will be prepared to tell your story and make yourself visible to the audience. Keep in mind that digital technology facilitates archiving files and provides different tools and platforms to make your content attractive and accessible.

Artwork files should document every piece with a label and a photograph, the itinerary of exhibitions, its current location, and whether they are in public or private collections. Sometimes art curators are interested in works in the hands of collectors, and these, along with the artists, can benefit from being included in an art exhibition.

In the fashion industry, catwalks bring together influential people, especially the guardians of taste or trendsetters, whose opinion influences key decisions in the sector. Public events, such as gala dinners or concerts, can be occasions to present new creations, as they attract public figures, artists, or athletes with whom to make agreements. It is also essential to consolidate a business presence through an establishment (which can be your own or a collective one), an online store, or via social networks.

The Bravo brothers, Hector and Jesus, began a business importing clothing from the United States. However, the compliance with customs and the burden of audits were reasons to opt for a domestic supply; from that moment on, they focused on being the best menswear brand in the state. Currently, they manufacture and market their brand. The quality of their products competes with international quality standards, and they have branches in Baja, California, Sonora, and Chihuahua. It has been hard to reach this point, but their road vision was pivotal to their continued growth. The store's online catalog is available at the following link: https://concrete.com.mx/ (QR1)

Initially, the Baez family opened a leather workshop to cater to the tourism market on Avenida Revolucion. Over the years, they had the opportunity to expand their production for the international market. At that time, the most popular items were leather jackets, bags and slippers. However, international trade changed with the influx of China's products, making their primary line unfeasible. To face these challenges, they decided to specialize in original and customizable designs while at the same time following fashion trends. Lissy Baez points out, "The fashion industry is tricky, the trends generally come from Europe, and you have to be up-to-date to design locally. For example, if textures and prints are coming in, you must have them in stock to produce."

Exclusivos Baez creations are renewed every two or three months, although they have essential products, such as slippers, that are constantly sold at the store. Most of all, it is a business that has kept innovating to make leather designs using airbrushing techniques, beading, or laser cutting. It requires craftsmanship to enhance features of texture and color in leather. The complete line of creations for men or women can be accessed in the online store's catalog, as well as to request a custom order. Go to https://exclusivosbaez.com/ (QR2)

In addition, consider registering creations before the corresponding agency to protect intellectual property and commercialization rights. For further information, please consult the National Copyright Institute (Indautor) website. Visit the site: www.indautor.gob.mx (QR3)

7: Intellectual Property

In recent years, around the world, several studies have pointed out the relevance of cultural and artistic companies to economic development. Such as job creation and wealth; this contribution tendency is led by tech-based, distribution, and media companies that play a part in producing, distributing, and consuming goods and services. Intellectual property registration has become more frequent in our vibrant regional, cultural, and creative ecosystem.

This step aims to provide relevant material for creators and administrators of cultural and creative companies to increase their management skills and ability to care for and expand their heritage in addition to serving as a tool to understand with precision the creative market and the main difficulties faced in terms of intellectual property asset management.

In short, copyright law gives the author or creator of a work a diverse set of exclusive rights to their work for a set time. These rights allow the author to control the economical use of the work in several ways and to receive payment to prevent copying. Copyright law also recognizes "moral rights" that protect an author's reputation and integrity.

There is a marked difference between copyrights and patents. Copyright protects the form of expression of an idea, while patents protect the idea or invention itself. Copyrighted creativity is the creativity inherent in the choice and configuration of various works. Copyright laws protect a copyright owner from those who copy and use the form in which the author expressed the original work.

For example, the company Péndulo Cero, based in Tijuana, mounts original works created mainly by choreographers and dancers belonging to the group, for

which each one retains the moral and copyright rights of their creations, making use of agreements with the company. However, when they have toured internationally, especially after the success of Ballenas history of giants, they chose to register intellectual property to take care of the creative heritage of the organization. This dance is considered hypermedia, thanks to integrating 3D video technology resources with the choreography. This production toured three continents: America, Europe, and Asia, reaching various locations in Korea and China. The business model that made the massive exhibition of this work feasible was the international co-production with dancers from Spain. In the same way, protecting intellectual property and corresponding registrations in INDAUTOR was essential to carry out the international tour; the itinerancy was facilitated by including guest dancers and technicians.

The dissemination of the creative catalog is essential to make yourself known; although the Péndulo Cero company uses the YouTube channel to broadcast demos or video memories of their staging, they have also ventured into video dance; in this regard, Miroslava Wilson points out: “We made two productions with cinematographic quality in collaboration with Empírica, however, for their diffusion we have to participate to festivals, you know, be glued to the computer and usually each application costs around 30 or 40 dollars, so, no, it is not enough to produce the play, you also have to mobilize funds for its dissemination.

The complete work is only accessible through private channels, such as Vimeo, to protect intellectual property. You can access a personal viewing of selected works by purchasing a germinable card (to distribute music and seeds) through the Sowing Music initiative. More information at: https://sembrandomusica.com (QR4)

Management of copyright and intellectual property

As an entrepreneur in the cultural and creative industries, developing a culture of innovation is crucial. This culture must be constant at all times because it is what will make a remarkable difference in your economic sector, thus generating great value in the market niche you are targeting. Once you have defined the market niche for which you will carry out your project, it is essential to protect all the new products and content

you generate with intellectual property rights before exhibiting or marketing them. This will allow you to obtain the copyright and intellectual property rights of your brand and your works so that only you can decide how your work will be exploited economically.

¿What can be registered as intellectual property?

For general purposes, only certain elements can be registered as intellectual property. Among the main ones are trademarks, patents (inventions of new products or technologies), utility models, industrial designs, literary works, musical works, cinematographic works, illustrations, documentaries, phonograms, animation, dance, radio and television programs, animated characters, and computer software.

Instances and organizations for the protection of copyright and intellectual property

In Mexico, two public bodies are responsible for managing the registration processes of works, trademarks, and patents, for the protection and safeguarding of copyright and intellectual property of the interested parties, which can be entrepreneurs, business people, artists, professionals, or general public content creators. These organizations are linked to the World Intellectual Property Organization (WIPO), a central body of the United Nations for the protection of works and the human intellect. See www.wipo.int/portal/es/ (QR5)

1.- Mexican Institute of Industrial Property (IMPI –Instituto Mexicano de la Propiedad Industrial): This body is a dependency of the Ministry of Economy. It supervises, coordinates, manages and administers everything related to the Federal Industrial Property Law (LFPI). See www.gob.mx/impi (QR6)

2.- National Copyright Institute (INDAUTOR): This body is a dependency of the Ministry of Public Education. It is responsible for ensuring the Federal Copyright Law (LFDA) copyright protection. In the same way, it promotes creativity and the general development of culture. See www.indautor.gob.mx (QR3)

Which organization should I approach to register my intellectual property?

The choice of instance will depend on the type of product you want to register

IMPI: Trademarks, utility models, adjustments, processes, patents (inventions, technology, etc.), industrial designs, integrated circuit traces, diagrams, and slogans, among others.

INDAUTOR: Literary works, musical works, songs, dramatic works, choreographies (dance), drawings, paintings, sculptures, plastic pieces, caricatures, comics, architectural, cinematographic, audiovisual, radio, television and computer programs, photographs, art applied, and databases.

Importance of correct copyright and intellectual property management, remember that each of the ideas you generate belongs to you from the moment you conceive them in your mind. Still, they must be transformed into something tangible to be legally registered as assets. Once this is done, your ideas can benefit your business by generating a wealth of intellectual property that allows you to continue promoting it. Also, do not forget that each new idea generated in your business must be protected since it will not be enough to develop a competitive advantage with innovative works and original stories if they are left unprotected so that anyone can imitate them and exploit them economically.

Steps for the registration and protection of works by copyright and intellectual property

Once your creative idea is organized and classified, continue with the following steps:

1.-Turn it into something tangible: If it's a brand name, turn it into a design; if it's a story, write it down; if it's an idea for a song, record it. It has to be physically expressed.

2.-Select the instance (organization) where you will register. Remember that the choice of this will depend on what you want to register.

3.-Enter the website and download the registration forms www.gob.mx/impi (QR6),www.indautor.gob.mx (QR3)

4.-Review technical details with your partners in case creative credit has to be shared. You usually collaborate to develop new ideas, so it is crucial to reach general

agreements for a fair distribution of participation percentages. In case you are the only creator, skip this step.

5.-Follow the registration instructions provided by the website of the chosen instance. If you have doubts, approach an advisor for a better resolution and successful registration.

6.-Your registration process will be finished only when you have obtained your certificate. This document is

critical because this is how you legally prove and protect your copyrights (brand, art, patent).

The correct management of your copyright and intellectual property implies that you give legal value to your creations in such a way that you consider them at all times as assets that can generate wealth and a competitive advantage in the market chosen for the venture.

Industries that are protected by copyright according to the World Intellectual Property Organization

Creative Industries

Handicraft Products

Market segments

Clothes /Accesories

Interior and Exterior Decorations

Household Items

Gifts

Stationary

Visual Arts

Artistic Crafts

Painting

Perofrming Arts

Dancing

Live Music

Sculpture

Theatre

Photography

Design

Fashion

Audiovisual Media and Cinema

Movies and Videos

Recorded Music

Radio

Multimedia Literature, Books and Edition

Digital Arts

Advertising

Communication

Circus Street Performances

Internet

Transmisions

Education

Entertaining

Source: WIPO: WIPO (2004), National Studies on Assessing the Economic Contribution of the Copyright-Based Industries, WIPO, Copyright Industries: Report No.1. author, WIPO, Copyright Industries report no. 1).

8. Creating Markets for CCIs - (Market Generation)

It is about creating opportunities using techniques such as Blue Ocean (which applies to non-saturated markets). This doesn´t mean eliminating competitors but competing with the right strategies based on added value, value proposition, innovations, and uniqueness.

You may ask yourself, where do I start? How can I generate my own market?

First, you must identify the market context, behavior, tendency, and reaction to your products or service. Previous steps on this roadmap provided needed information to define a market approach strategy and market generation. We strongly recommend you buildup key collaborative alliances.

Creating a market, especially in the CCIs, is not a solo job; instead, it requires the participation of different actors in the ecosystem, so it will be necessary to determine what strategic alliances and type of support you will need from civil or government organizations. This type of initiative must be promoted together to detonate the market. For example, initiatives such as Innovamoda have created events and a movement to encourage Local Fashion. Fashion design was also catalyzed by specialized academic offerings such as ModiArt and university degrees such as UDCI university.

The market creation step through the Blue Ocean strategy focuses on creating new market spaces and increasing demand by offering consumers a leap in value. A solutions-based approach helps companies expand into untapped markets and gain a competitive advantage by offering something unique and high value.

The Blue Ocean Strategy was first introduced by W. Chan Kim and Renée Mauborgne in 2005 through the publication of the book titled The Blue Ocean Strategy and in its most recent version, The Blue Ocean Transition, published in 2017.

The theory is based on creating new demand by looking at a problem from a different angle and offering an innovative solution. Its goal is to help companies gain a competitive advantage through value innovation.

Companies can do this by creating new products that do not compete directly with other existing products or services (they make blue oceans) or by creating new markets for their offerings and avoiding falling into saturated and highly competitive markets (red oceans).

Creating a new market is one of the most challenging areas of creating a blue ocean. It is a complex process due to the need to create a sector for which there has been no demand and then develop the market to attract customers. However, this can be done through an innovative value proposition that attracts customers through value innovation.

Blue ocean strategies are not easy to create, but they can be extremely rewarding and profitable. They require a lot of effort and planning, but if you can create a blue ocean strategy, it will pay off for years.

Tools such as the Pioneer, Migrant, and Settler map can be relied upon for this point. A valuable exercise for a business management team seeking profitable growth is to plot the company's current and planned portfolios on the Map.

Evaluating your product/service offerings according to the innovative value they offer to buyers allows you to see how strategically vulnerable or healthy your portfolio is. The pioneer-migrant-settler map is divided into three segments: pioneers, migrants, and settlers.

The Strategic Canvas is a central diagnostic tool and action framework for building a compelling blue ocean strategy. Graphically captures, in a single image, an organization's current strategic landscape and future prospects.

And the Eliminate-Reduce-Increase-Create (ERRC) quadrant is an essential tool of the developed blue ocean strategy. It is a simple matrix-like tool that empowers companies to simultaneously focus on eliminating and reducing as well as increasing and creating while unlocking a new blue ocean.

In the cultural and creative industries sector, the initial step is to be visible and generate interactions with audiences with a strategy aimed at turning them into consumers (clients); if they do not know you, they won't consume your products or services. We start from the

idea that your business already has customers and sales; however, creating a larger market or with a specific feature is sought, either to develop a market niche or expand it. It is sought that they follow you, that a taste for your creations is impregnated in the community, generate spaces, movements, and positive consumption trends, and that allow your business to scale. Perhaps some innovators will be able to affirm that they do not necessarily need quantity but the quality of clients, and they may be partly right; however, if your finances are not the best and the business still requires an injection of capital to grow. Additionally, in this step, it is vital to address the issue from the perspective of the creatives who collaborated in the study, who pointed out that they had to create their market or, in other words, their followers, their audience, or public (which involved time, investment and collaborations, and alliances with other actors in the CCI ecosystem). Below we share their experiences.

One of the interviewees in the arts sector, developed business skills by taking workshops and consulting articles for himself. Among his searches, he came across the Blog of Kevin Kelly, who created the concept 1000 True Fans in 2008; this essay can be found in the references section. Also, the book by Jongo Longhurst proposes an income model based on the recommendations of Kevin Kelly, Tim Ferriss, Seth Godin, and Ramit Sethi. We highly recommend both readings.

In essence, he told us that this article opened his perspective regarding market creation not only to get buyers but now, being a visual artist, he explored the option of generating a community of followers as a source of financing either to cover his operating expenses or to finance a particular project in exchange for an attractive benefits scheme for members of their community, let's call them fans. Among the benefits you grant to that community could be the pre-sale of a new collection of handicrafts at preferential prices, pre-opening your exhibition, a visit to your workshop, and a one-on-one talk. Or, extrapolating to other CCIs, the case could be made for the theater; such benefits could be access to rehearsals, gifts such as autographed scripts, etc. Being creative, you will probably come up with countless possibilities.

If you are searching for markets, there are platforms where companies are promoted in international markets. Such is the case of the IDB's Connect Americas. You can consult in the following league. https://connectamericas.com/es (QR7)

9: Implementation of digital technologies

Creative agents must take advantage of their core competencies (innovation, creativity, artistic skills) by implementing digital technologies to create new sources of income and communication channels to engage with their clients and increase their chances of scaling.

Today the different sectors of the CCI have begun to use technology to produce and get closer to their audiences. As previously mentioned, it will be an excellent ally for business acceleration and scaling.

Web Site

It is basic today; although for many, it may be only necessary to have social networks, there are still clients, investors, etc., who will seek to visit your website. We recommend that you take care of the design and structure that reflects your professional stamp and the quality of your work and highlight your catalog. It will be extremely important to place updated contact information, and it is better to have a shopping cart.

Social Networks

Depending on your subsector, we suggest studying whether you need to be on the most significant number of social networks or look for those specialized ones that work best for your branding and marketing strategy.

E-commerce and CCIs

If you haven't explored the benefits of e-commerce, this step is exactly what we recommend doing.

Today there is an extensive range of e-commerce platforms. Depending on your line of business, it is recommended to analyze those known and emerging platforms that could help you scale your business based on increased sales. As part of the state programs to support Baja Californian companies, alliances have been made with Mercado Libre and Amazon to train entrepreneurs and business people on the different aspects of electronic commerce. In fact, with Mercado Libre there is an official store called Consume la Baja, below, we share the promotional issued by the Ministry of Economy and Innovation of the Government of Baja California.

How to apply digital technologies for the acceleration of cultural and creative companies? The implementation of digital technologies has a significant impact on business, as it allows you to expand markets, increase turnover, retain customers and improve human resource management.

The use of technology can be divided into four main areas: data collection automation, process automation, CRM (customer relationship management) software, and optimizing operations. These areas are facilitated by the implementation of e-commerce platforms, web pages, social networks, and business intelligence systems, for example.

Digital tools and technologies are evolving rapidly. The prototype and the minimum viable product (MVP) have become popular in the world of startups, scaleups, and digital transformation. Nowadays, many companies use digital tools to develop prototypes of products and services or MVPs, which allows for testing new business models and launching new services in an iterative, agile and scalable way.

In addition to the above, we would like to share the success stories compiled during our research. We also recommend you consult the examples presented in the book Techno-creative entrepreneurship, Creativity and technology, allies or enemies? published by the Inter-American Development Bank in September 2019.

Digital Platforms

The fast acceptance of digital technologies has allowed the development of new business models and opportunities for cultural and creative companies. Digital technology can provide more optimal performance, improve product quality and increase customer satisfaction by delivering your product more efficiently. Implementing digital technologies will help you work smarter, not harder, and manage your creative business effectively.

An example of technology integration for the production and sale of men's clothing is the Baja Californian Concrete brand, which has managed to successfully use technology not only to establish sales channels but also to implement technological tools in its operations, which has brought immense benefits. They currently have a website with online sales.

In the music and entertainment industry, technology played a vital role during the pandemic; streaming concerts were held internationally. In addition, music platforms such as Spotify, Apple Music, and Amazon benefited from the context, driving the creation of more content for this market, Guillermo García, musical promoter of the Erizo Media company, pointed out during his interview.

10: Marketing and personal branding

Define your marketing plan to effectively launch your creative business and position it in the market. Similarly, developing a personal brand is essential to identify yourself, attract new customers, and increase your audience.

Dance companies generally work based on rehearsal routines and choreography to put on a show. Another critical component is the technical production, which takes charge of the space where the staging takes place on stage. The technical and human elements are combined to create a scenic montage. The effort that this implies involves a planning effort, which is what the marketing phase to communicate to the audience about events and presentations is vital for the sustainability of the projects. The same can be said of the staging of theater companies. Both Péndulo Cero, which specializes in contemporary dance, and Teatro en el Incendio hire marketing services to spread information about their presentations and sell tickets to their events, which is the basis of the sustainability of these groups.

In the area of music promotion, Jeanete Ciénega, director of marketing and administration at Erizo Media, underlines the need to educate the audience to value the show and thereby justify the ticket price. It recommends creating informative campaigns and disseminating content on social networks. Taking into account that to organize a concert it is necessary to rent a space and sound equipment, in the same way, to hire personnel, sound technicians and of course the musicians. It is very important to define marketing strategies with dates, work, and promotion schedules. Similarly, establish clear and quantitative goals on income. The chances of success are based on planning and marketing. It is also important to evaluate the results of advertising campaigns, as well as the factors that can affect or favor this type of event, for example, the weather, accessibility of the place or parking, insecurity, etc.

For Gilberto Corrales, stage director of Teatro en el Incendio, it is fundamental: “to communicate the value attributed to the live performance. You have to generate a conviction with the audience because if there were a

constituted market, we would only need to offer the events”. Hence, it is necessary to carry out an advertising campaign through various media, such as the press or radio, and reinforce it with digital and audiovisual platforms. Also, it takes time to create the sales funnel. In a reflective tone, he pointed out that: “I hate to have to apply marketing techniques to art, but it is necessary for the sustainability of what we do” Without a doubt, it is an effort to inform and convince about the value of the product, but it has its rewards. He also pointed out that few regional marketing agencies dominate specialized marketing for CCIs.

The strategy of Exclusivos Baez is to communicate the values of its product, on the one hand, offering classic models and collector's items, in the same way, offering quality and durability in its products. For this, they resort to the services of a marketing agency that supports them in the design of catalogs, web platforms, and management of social networks. As a personal brand, the members of the Baez family collaborate in creating new products or collections, headed by Federico Baez as director and chief designer, followed by Lissy Baez in charge of catalog documentation. She is a designer, supervising the marketing and photography of new products. As a personal brand, they have also dedicated themselves to gala attire for concerts or events.

A particular strategy is to support the debut of new boxers who make a gown for their main fight. Similarly, these strategies are developed for singers or musicians, requiring public relations, which are in charge of Federico, the company's youngest member. It stands out that the strategies followed by this design house have lasted over time, making adjustments with technological changes, but preserving the essence, thereby positioning the brand at an international level.

11: Operational Analysis and Redesign

To successfully scale a project, it is key to direct all efforts toward growth metrics. The goal is to accelerate the business to grow faster than the competition, seize market opportunities, and deliver exceptional value to customers. In this step, a customer-centric acceleration plan is defined.

The main thing in this step is to define the operational requirements of the start-up of the acceleration plan and translate them into growth metrics and goal setting that allow you to keep up with the business goals.

Establishing a route with measurement processes is convenient to determine if your operational capacity allows you to execute the defined scaling plan or if you will have to carry out an operational redesign in your current company situation and the human capital you have.

In a few words, it is a scope evaluation, where you will determine if you are ready to scale. Let's look again at the example of Concrete, a casual clothing fashion company. When they began their growth, they had to outsource manufacturing processes in order to cover the needs of their 17 branches and online sales. When the pandemic arrived and taking into account the dynamics of the fashion-textile industry supply chain, in order to maintain its growth, they chose to increase their own production capacity, automate processes and use technology in their favor to stop depending on suppliers (given that some suppliers in the industry, upon receiving more attractive contracts and having limited capacity, could cancel Concrete's orders, leaving them without merchandise). One aspect highlighted by this company is the importance of metrics and real-time information availability at its points of sale and at manufacturing centers (owned and subcontracted) to ensure operational and administrative efficiency. They also pointed out that they will continue betting on technological resources in their scaling process.

Metrics

Defining and measuring success metrics and indicators is an important skill for business leaders to develop in order to monitor and evaluate the performance of their teams. In this step, we will address the importance of business metrics and explore those your team must follow to achieve the company's objectives and the relevance of identifying the most critical data of your business.

Various metrics can be used to measure the performance of a new business, a growing business, and a mature business. We have identified some key metrics for each category. What metrics to consider and take into account for your business? Metrics are quantifiable measures companies use to track, monitor, and evaluate success or failure in achieving a specific goal. They are the basis for making decisions in your business; they can be evaluated in different ways.

General business metrics

- Gross profit margin

- Return on investment (ROI)

- Productivity

- Total number of clients

- Recurring profitability

Marketing Metrics

- Daily web traffic

- New visitors

- Email creation rate

- Number of potential customers generated (leads)

Customer Success Metrics

- Customer Loyalty Score (NPS)

- Customer retention rate

- Customer abandonment or churn rate

- Customer feedback

- Customer average life

- Customer lifetime value (CLV or LTV)

Sales Metrics

- Potential Qualified Clients

- New Customers

- Lead conversion rate

- Customer Acquisition Cost (CAC)

- Total number of new customers

Software development metrics

- Product uptime

- Error response time

- Daily active users

- Cycle Duration

- Performance

RH Metrics

- Employee satisfaction

- Employee turnover and retention

- Employee comment

Objectives and Key Results

Objectives and Key Results (OKRs) are the backbones of an effective growth strategy for a startup and fast-growing company. They are a way to set goals and measure progress, align the company around common priorities, motivate people, and help you figure out what you need to do next in your business.

OKRs not only allow to establish a multilevel strategy for organizations in order to line up teams to main goals but also, they are a tool that department directors can use to prioritize based on value generation. Basically, making visible daily indicators let each team know their contribution to the main goals, which provides motivation and accountability. In addition, team members enjoy a certain freedom from micromanagement practices or overloading the paperwork process.

Objectives: Less is more, select a maximum of 3 to 5 trimestral objectives. Focus your efforts on worthy objectives and communicate them to all company members. ¿What should I do next? ¿In what should I focus on? ¿How far am I from accomplishing my objective?

Key Results:

Establish 3-5 Maximum. Test and notify weekly progress. It must be a measurable indicator. Say NO to activities that won´t contribute to OKRs. Result-oriented, not task oriented.

North Star Metrics

The North Star metrics are the key measures of your company's success, identify and propose which is the fundamental metric for the success of your company and towards which all indicators and efforts must be aligned to contribute to its fulfillment. Key Performance Indicators (KPIs) will help you understand how much progress is being made toward meeting that metric and your business objectives. They can also be used to determine whether you should continue with your current strategy or change course and pivot.

The term North Star Metric was popularized by Y Combinator

founder Paul Graham. He explains that it refers to "that single number that measures how close a startup is to its ideal vision."

How do you identify them?

There are several ways to identify your North Star metrics: Ask yourself what is important to your business and why. What does success look like? What will make your audience, users and customers happy enough to buy (or stay with your brand)? What kind of growth do we want in terms of revenue or profit per customer, new products/services added each month/quarter/year, etc.?

Study similar companies in similar markets that have been successful: what made them successful? Look at their key performance indicators (KPIs).

Discuss these issues with potential investors, etc., who may have experience working with similar companies and their KPIs.

Accelerate business growth

Growth is something every business desires, and it is a challenge that requires a lot of energy to achieve. How you can accelerate the growth of your business.

Know where you want to go and what you want to measure. This will help you establish your company's objectives, which we discussed earlier.

Start with the end in mind: know what the success of your company and its products looks like from an external and internal perspective (how they affect users). Then map out how you plan to measure whether or not that goal has been achieved.

North Star Metric for 40+ Growth-Stage Tech Companies

Source: https://future.a16z.com/north-star-metrics/ (QR8)

Growth loops in your business model

Growth loops are the key to sustainable growth. If you can find a way to grow your business at a linear or exponential rate, you can generate more revenue faster.

Growth loops are a series of steps that help you identify the key metrics you need to focus on to accelerate growth.

Identify what needs improvement (for example people are not signing up).

How can we improve these metrics? This could mean changing landing page messaging or reaching out through different channels, such as social media and email marketing campaigns, rather than relying solely on word-of-mouth recommendations from current users.

Survey Monkey Growth Loop Model

Ortto Growth Loop Model

Work platform and customer data processing, messaging and data analytics. Provide solutions for building customer journeys.

SurveyMonkey is a company that allows users reating online surveys. It helps users to create, send and analyze these surveys. Users can email surveys to respondents and post them on their websites and social media profiles to increase the response rate.

Source: https://ortto.com/blog/growth-loops/ (QR9)

Pinterest Growth Loop Model

Pinterest is a visual discovery engine for finding ideas like recipes, home and style inspiration, and more. With billions of pins on Pinterest, you can always find inspirational ideas. When pins are discovered, they can be saved to boards so ideas are organized and easy to find. You can also create pins to share ideas with other people on Pinterest.

Source: https://ortto.com/blog/growth-loops/ (QR9)

Linkedin Growth Loop Model

Linkedin is a social network oriented to business use that works by promoting the professional skills of users, who freely share their work experience. The platform connects millions of companies and employees in search of talent and professional development.

Source: https://ortto.com/blog/growth-loops/ (QR9)

Source: https://ortto.com/blog/growth-loops/ (QR9)

Growth engines

The concept of growth engines is explained by Eric Ries in his book the lean startup method. Growth engines are metrics that can help you discover how to create sustainable growth based on your audience's use of your product or service. There are four main growth engines: the viral growth engine, the paid growth engine, the search engine optimization (SEO) growth engine and the sales force growth engine.

1. The viral growth engine: which can be driven by word of mouth, sharing content, sending invitations to your close contacts, or a referral and recommendation program.

2. The paid growth engine: mainly through advertising and marketing.

3. The growth engine through search engine optimization: the audience finds your product or service through searching online.

4. The growth engine through sales force: having a team dedicated to the sales and marketing effort, primarily in business-to-business sales.

For more information and examples about the growth engines of some of today's most important technology applications review the article by Rachitsky (2022b) in the references section.

Examples and trends in current markets

Although it may sound trivial, we would like to give you an international example from which we can learn by looking at fashion television programs from a different perspective.

For several years we could see on television programs such as Project Runway, Next in Fashion and national examples such as Mexico Diseña, and others in which designers competed, most of them in their initial stages of entrepreneurship or with small businesses; currently the format of such programs has begun to signers to a process of acceleration and scaling, that is, now the participants are designers with brands in operation, with knowledge about production and marketing of fashion.

Just to mention one example, in the Making the Cut program, now in alliance with the e-commerce and

multimedia content platform Amazon, as part of the dynamics of the contest, the goal was set for these designers to enter the global electronic market through its platform, and an economic support (prize) of one million dollars was given to them precisely to be used in the acceleration and scaling process of the winning brands.

This dynamic allows a design to be commercialized in less time and with greater reach. It is worth mentioning that the program has an official store on the Amazon portal. As part of the acceleration process, support is also offered to designers under a mentoring scheme with experts and colorations with recognized brands.

12: Financial strategy modeling

Define your company's financial model, economic metrics oriented to audience retention and apply cost engineering to your scaling up project. In this step, it is recommended to explore public and private funding sources.

In this step it is important to make an in-depth review of your cost structure and make financial runs on the possible financial models you are looking to follow. To get to this point it will be important to understand the main financial ratios, explore possible alternative sources of revenue and it is time to leverage the use of technology to reduce costs and maximize profits.

It is worth mentioning that each Creative and Cultural Industrie sub-sector has different profitability and returns. It will be necessary to be clear whether your activity is economically viable, self-sustainable, has growth potential, or will be dependent on donations and public funds.

Whatever your case may be, in this step we recommend you to do research in order to know which sources of financing you could use to invest for the scaling up of your project. These sources of financing can be public or private funds.

Review Price and Mujica (2018) article to identify issues affecting funding for the Creative and Cultural Industries.

Uncertainty and risk

Lack of collateral (guarantees)

Lack of history

Information asymmetries, adverse selection, and behavioral risk.

Investment and sunk costs

Transaction costs

Characteristics of entrepreneurs or entrepreneurs themselves

Dependence on public funds

Intellectual property

In the words of the creatives interviewed: "we sell and produce what our clients do not yet know they will like and are willing to pay for. Cultural and creative products are a gamble subject to consumer taste." Although many of the projects that the study participants told us had the potential to generate income, it is difficult to get private investors to invest.

You will find information on funding sources and programs in the additional support section of this document, as well as in the publication Sponsors, public policies and tools for scaling up and internationalization edited by Durazo-Watanabe (2022).

In this step you will also determine whether you need financing or to raise capital from investors. As suggested reading, we offer for your consideration chapters 7, 11 and 12 of the book “Aprendiendo a emprender”.

13: Creative Pitchs

An important key to having a great pitch is to communicate your story clearly and concisely, emphasizing the core elements along the roadmap. These are: vision, problem, product or service, business model, team, market, financials, and growth rate. Close with a call to action for your target audience.

What is a Pitch?

Explained in creative terms, it is your speech, your script that you use to present your business or project to a specific audience. It is the dialogue to present your business concept, and depending on the purpose you have set will contain variations of elements; in this step, we will

explain key elements for the development of a pitch that connects with your audience, your customers, investors, partners, and other ecosystem players.

Pitch Elements

1. Opening message - remember first impressions count for a lot. The audience is likely to remember what made an impact on them. You have the first few seconds to hook your audience.

2. Who are you or who are the members of the project and why are you addressing your audience? - You can briefly talk about your background and the elements that characterize you or your business.

3. Business concept – scaling up: What is your value proposition, and what differentiates you? What does your project consist of? Why is it relevant? In the case of cultural projects it is important to point out your contributions to society.

4. Financial model

5. Expected impact - expected growth

6. What do you expect to get from your audience? How much investment are you seeking?

7. A good closing.

Artistic and Business Pitch

During the interview process and based on the research done, we would like to propose that you prepare two types of Pitch, one focused on your audience where you can effectively convey your artistic and cultural message, and built with your personal seal (here you will use elements of the Branding and Personal Marketing step); and a second pitch where you integrate into your dialogue the language of business, that is, in which you convey your business concept and those aspects of relevance to achieve a business goal that you have set to achieve with your presentation.

For the Business Pitch it is important to master your numbers, that is to say, the Creative and Cultural entrepreneur needs to know his numbers. How much you sell, your profit margins, how much capital you use for a certain project, and what you are going to use it for. How many customers do you have, your sales channels. When it comes to a Pitch for investors or for a public official responsible for a program it is important to be able to transmit that in addition to mastering your business from the creative and cultural point of view there is also a full knowledge of the business side.

Elevator Pitch Technique

In cases where you are unexpectedly presented with the opportunity to approach a person who could be a client, partner, or investor, you can apply the Elevator Pitch technique.

To take advantage of this opportunity, you will need to analyze the receiver at the speed of light to finalize in that fraction of time what adjustments to make to your original Pitch. Since you generally have between 20 and 30 seconds to get the receiver's attention.

What do I need to consider for an executive presentation?

Prepare your presentation minute by minute and anticipate all your movements just like a movie theater script. In addition to the message, it is necessary to consider elements such as: time available, audiovisual supports, electronic devices, modality (if it is virtual, stability in the internet connection).

Time to present: it is important to know how much time is available for the presentation in cases where there is a previous appointment. Practice, practice, and practice your Pitch, it is important.

Additional support

Resources for startup acceleration and scalability

Below is a list of resources for entrepreneurs looking to scale and accelerate their businesses. From public sector financing programs to the different business accelerators that exist both in Mexico and Latin America (LATAM), this list provides some suggestions on available financing and acceleration programs.

Accelerators and incubators are a great way to build and accelerate your business. They offer mentoring, connections and funding opportunities, all in exchange

Preparation: if you are going to use audiovisual resources, it is important to make sure that the equipment is working properly and to make tests prior to the presentation (test that the files run correctly).

Audiovisual supports: prepare the video or presentation that you will use at the moment you will give your pitch, but also add support information at the end in case specific questions arise, let's say a section of annexes. In those cases where it is a very important presentation and you know beforehand that the level of demand is high, if necessary, get support from experts to make a quality presentation in terms of design and im

Practice: if you are going to use a clicker, practice the use of the clicker. Practice with the collaborators of your team and with people outside the project. If an outsider is able to understand you without prior information about your business, this will serve as a reference to determine if the message is conveyed clearly, concisely and fluently.

Impress the audience: Use your communication skills to deliver an original message that connects with your audience. Give them a unique business experience in your presentation. If you prepare graphics, make your project's stamp identifiable throughout your presentation.

for a small equity stake. But finding the right accelerator or incubator can be difficult. You need to find one that is aligned with your goals and will help you achieve success faster than on your own.

Business accelerator programs are designed to help startups and scaleups test their ideas, develop their businesses and grow them. They provide the mentoring, coaching and other resources needed to fuel the growth of these organizations. Accelerators can take the form of physical spaces where entrepreneurs meet with other founders and mentors, or they can be online platforms that connect participants with similar interests as they explore new opportunities.

There are several business accelerators that have business scalability programs. Some of them are:

1. Y Combinator

2. Ignite 100

3. MassChallenge

4. Techstars

5. Wayra

6. 500 Startups

7. Impulso20

8. Victoria147

9. Startup México

10. BBVA Momentum

11. Platanus Ventures

12. Rockstar LatAm

13. Orion Startups

14. Bluebox

15. Tijuana Ventures

16. Startup Chile

17. Seedstars

18. IDB Lab

19. Endeavor

20. The Venture City

21. Magical Aceleradora

22. NXTP Corporate Partners

23. Startup Buenos Aires

24. UTEC Ventures

25. ProInnóvate

26. Innpulsa

27. Rockstart aceleradora

28. EWA Capital

29. Impact Hub

30. Darwin Startups

31. New Ventures LATAM

32. Plug & Play accelerator

33. Google for Startups

34. Disney Accelerator

35. Impulso 20

Ensure your company is ready for acceleration and scalability

As you read about the various resources and programs, it's important to keep in mind that all of these factors are very important. You will be more successful as a creative entrepreneur if you take the time to make sure your company is ready for acceleration and scalability by making sure you have a clear vision and strategies, a strong team, a solid business model and/or a validated product or service.

This 12-step roadmap is intended to help you prepare your company for acceleration, or to help you present yourself with a better chance of entering one of the most important business accelerators in the Americas mentioned above.

Additional community and support resources: Amela (Newsletter): Entrepreneurial women community Startupeable (podcast): LATAM startups and acceleration educational content

Latinometrics: Data about the innovation ecosystem in LATAM

Ciclos de financiamiento de una Startup

Aceleradoras Inversionistas Ángeles, F&F Venture Capital Semilla

Ingresos

Etapa pre-semilla

Pre semilla Semilla

Venture Capital (o M&A, o Alianzas estratégicas)

Early stage (temprana)

IPO

Growth stage (crecimiento)

Etapa semilla

Mercado público

Serie B

Serie C

Serie D+

Post semilla Serie A

Valle de la muerte

Tiempo

Tipo de inversionistas

Etapas de financiamiento Rondas de inversión

Source: https://twitter.com/bridgelat (QR10)

Financing stages and their characteristics

Fuente: https://blastoffpartners.com/estapas-de-financiacion-segun-la-fase-de-la-startup/ (QR11)

Venture capital funds and business accelerators with information on investments in Mexican startups and companies.

Link database: https://bit.ly/Fondos_CapitalRiesgo (QR12)

Fuente: https://kiewel.substack.com (QR13)

Repository of presentations of startups that have successfully raised capital.

Link to the database of presentations of companies that raised capital in the Seed stage: https://bit.ly/ejemplos_presemilla (QR14)

Database presentations of companies that raised capital in the Seed stage: https://bit.ly/ejemplos_semilla (QR15)

Link to a database of presentations of companies that raised capital in Series A stage: https://bit.ly/ejemplos_seriea (QR16)

Link to the database of presentations of companies that raised capital in Series B+ stage: https://bit.ly/ejemplos_seriesb (QR17)

Source of databases: https://startupeable.com/pitch-deck-database/ (QR18)

Training to become financially fit and tech savy

Understanding that each case has its own challenges and particular context due to variables attributable to the subsector, time and external factors; however, it is worthwhile and as a result of the analysis of the experiences of the creatives interviewed, we share with you the following recommendations.

Perseverance and Discipline

In the words of the participants, both perseverance and discipline have been key to the growth of their businesses.

Professional preparation

Preparation is key to generate both a value proposition and to develop a scalable business model, considering both operational and financial aspects.

Financial analysis

Markets are dynamic and therefore you as an entrepreneur must be updated.

Learn new technologies

With new technologies come opportunities for your company, learn how to use them in an optimal way in favor of your creativity and for the management of your business.

Strategic planning and development of a business model

Sustained and scalable business growth require careful planning of all aspects of the business. It is important to measure progress against goals and evaluate results. Your commitment to creativity is as important as taking care of the administrative activities of your business, use management to your advantage to achieve your financial goals.

Public support programs and institutions

It is important that you identify the support programs offered by the public sector. You can find financing programs for small and medium-sized businesses at different levels of government. There are also public agencies that have specific programs for the cultural and creative sectors.

Below are recommendations of programs and support institutions and how to access them.

Federal Programs

The Department of Culture has programs to promote art and the Creative and Cultural Industries, within these programs it is possible to find funds, contests, financing, among other types of support. We suggest you visit the official site of https://www.gob.mx/cultura (QR19)

The following are some of the most relevant programs

Convocatoria 2022 México en Escena-Grupos Artísticos (MEGA)

Agency in charge: Sistema de Apoyos a la Creación y Proyectos Culturales (SACPC)

https://www.cultura.gob.mx/gobmx/convocatorias/detal le/3452/mexico-en-escenagrupos- artisticos-2022 (QR20)

According to the site, this program includes "Stimulus to artistic creation, recognition to careers and support to the development of cultural projects".

Disciplines that can apply for this call:

Circus Dance Music Opera Theater

Interdisciplinary stage (proposals involving two or more stage disciplines)

State Programs

Secretaría de Cultura

The Secretaria de Cultura currently has a program to promote the creative industries sector. As part of the public policy of the current administration, lines of action have begun to be established to support the development of the Creative and Cultural Industries. Governmental support ranges from the search for investment, attracting productive projects, the linking of CCI subsectors, and the approaching of financing schemes.

Webpage: https://www.bajacalifornia.gob.mx/cultura (QR21)

Secretaría de Economía e Innovación del Gobierno del Estado de Baja California

This agency has a financing program in charge of the Financing Directorate. Although they are not exclusive financing for the CCI sector, we recommend you review the official website and consult the financial products available, which range from $2,500 pesos to $400,000 pesos. It is important to mention that the credits are granted by qualification based on financial and credit history, in addition to considering the applicant's payment capacity.

Webpage: https://www.bajacalifornia.gob.mx/sei/ReactivaBC (QR22)

City Programs

Secretaría de Desarrollo Económico de Tijuana (SEDETI)

Tijuana Funds Webpage:: https://www.tijuana.gob.mx/dependencias/SEDETI/fond o.aspx (QR23)

Creative professionals interviewed

Performing Arts

Jesús Gilberto Corrales Alfaro

Graduated with a degree in Theater. Entrepreneur and Director with more than 40 shows staged, of which at least 30 are of his own authorship. Recognized by different juries in selections such as the Muestra Estatal de Teatro on five occasions and twice in the Programa de Apoyo a Grupos Artísticos Profesionales de Artes Escénicas "México en Escena". He is also General Director of the Centro de Investigación, Producción y Divulgación de Arte Escénico Teatro en el incendio A. C.

Dulce Escobedo Muñoz

Co-founder of the Conservatorio de Danza México (CDM). She began her artistic training at a very young age. She has a Bachelor's Degree in Dance from the Gloria Campobello School of Dance and a Bachelor's Degree in International Relations from UABC. She is currently the Administrative and Public Relations Director of CDM. She recently received a merit scholarship to study the Master of Fine Arts in Choreography at CalArts.

Marianna Escobedo Muñoz

CCo-founder, general and artistic director of the Conservatorio de Danza México (CDM). She began at the age of 6 years old in dance, since then she has been active in the practice, she studied a degree in dance at UDLAP, in the city of Cholula, Puebla. She also has a Master's Degree in Documentary Photography. Upon

returning to Tijuana, she worked in different academies in the city teaching classes and in the last 6 years she has been fully dedicated to CDM, a project in which she collaborates with her two sisters, both performing artists.

Miroslava Wilson Montoya

Co-founder, co-director, choreographer, teacher and artist-manager of Péndulo Cero Danza Contemporánea. Graduated from the Professional Dance School of Mazatlan, with a degree in Industrial Engineering from the University of Sonora, and Master´s in Marine Sciences at UNAM. Committed to the development of artistic, environmental and humanistic projects from an interdisciplinary vision. Her work has been presented in China, South Korea, Japan, India, Spain, USA, Argentina, Guatemala, Chile, Germany and Mexico. She is currently an educator of Somatic Movement, Body Mind Movement and develops social dance projects.

Plastic arts – Crafts

Benito Del Águila Malváez

Electronic Systems Engineer by CETYS Tijuana (first generation), Master in Promotion and Cultural Development by the Autonomous University of Coahuila. Promoter of Mexican artisans since beginning of electronic commerce, especially of the Great Masters of Popular Art. Gallery owner for 6 years in Playas de Rosarito, gallery in which book presentations and

presentations of scenic artists such as trova, tango and flamenco also took place. Creator of the Rosarito Art Fest, Director of the Quixote Festival and the Mexican Art Market (Playas de Rosarito). Founder of the Latin American Art Festival (San Diego California), founder of the weekly interview program with performing and visual artists "El Truco del Oficio" (broadcast weekly on Youtube and Facebook)..

Music

Jeanete Ciénega Anda

Director of administration, coordination of graphic design and production logistics for the organizations ERIZO and Noroeste Movimiento. She was a member of the Ska-Reggae band Los Hijos del Santo and participated in the UABC Opera. She has documented the local music scene as a photographer and member of a musical group, was part of the radio program Invasión Local on 102.5FM and Radio ERIZO. Winner of the PECDA fund, with which the digital magazine ERIZOMEDIA.org was created, a portal dedicated to the news of cultural and independent work.

Guillermo Garcia Diaz

His main objectives are to generate strategic alliances and exchanges for the construction and strengthening of the independent music industry in Mexico and Latin America, supporting emerging music in the regional, national and international space, through the digital platform and event producer Erizo Media and the recently created creative corporation "Atajos del Norte" that provides booking services, linking, representation and management of talents in Mexico, as well as digital distribution and development consulting.

Abelardo Vázquez Ramos

Degree in International Business from CETYS University. Director of an audiovisual production company, specialized in advertising and political campaigns. Musician. Author, manager, producer, consultant, and music manager. Among his trajectory, he has been the manager of the musical groups Reik, Nikki Clan and Vázquez Sounds. He is currently a public official in the Ministry of Economy and Innovation of the Government of Baja California as Director of Creative Industries.

Fashion

Lissy Karin Baez Alvarez

Bachelor in International Business, Entrepreneur and Administrative Director of Exclusivos Baez, a second generation company dedicated to the commercialization and manufacture of leather goods. This company has a point of sale in downtown Tijuana, from where it has positioned itself both in the local market and abroad. In addition to the direct sale and customization of garments, it has a manufacturing center in which it produces its own lines as well as orders for other brands recognized in the international market. The company is currently integrating the third generation.

Héctor Alberto Bravo

Graduated in Business Administration from CETYS University. He began his career as a fashion merchant importing clothes. Later he ventured as a designer, which led him to become co-founder of the Concrete Brand, a company that has outlets in casual clothing for men which also manufactures; in addition to marketing its products online through its official website, they have manufacturing processes and are currently in the process of expanding their production capacity.

About the authors

Jaime Eduardo Moncada Garibay

He studied Engineering in Business Development and Innovation at the Technological University of Tijuana and received his Master's degree in Business Administration from CETYS University. Jaime Moncada is a business consultant and professor in business model innovation and entrepreneurship at the Business School at CETYS University. He has more than 10 years of experience in startup development, facilitating innovation, creativity and entrepreneurship methodologies for the development of new companies and restructuring of operating companies. Among his areas of expertise are Intellectual Property, where he has had the opportunity to attend courses, seminars and forums at national and international level on the protection of inventions, trademark and patent registration, taught by the World Intellectual Property Organization (WIPO) and the Mexican Institute of Industrial Property (IMPI).

Jorge Francisco Sánchez-Jofras

Has a PhD in Social Sciences with a specialization in regional studies and a Master's degree in Sociocultural Studies from the Colegio de la Frontera Norte, and a Bachelor's degree in Graphic Design from the Universidad Iberoamericana. He is a professor at CETYS Universidad in Tijuana Mexico, based in the College of Social Science and Humanities, where he contributes to the Center of Excellence in Human and Social Development and the Institute of Innovation, Entrepreneurship, and Social Change (INNSIGNIA). He is a

member of the research group in the area of innovation and cultural and creative entrepreneurship, and was the group researcher leader for the mapping of ecosystems of cultural and creative industries in Tijuana through an initiative issued by Tijuana Innovadora in alliance with the Center for International Private Enterprise (CIPE). Recently he was a member of the HOME 2024 San Diego-Tijuana, World Design Capital experience committee.

Ana Marcela Sosa Arámburo

Marcela Sosa has over 15 years of experience working not only in private companies of different sectors and sizes, but also, served in the public sector at the Sustainable Economy and Tourism State Ministry promoting investment in Baja California. She is an Industrial Engineer and has a Master’s Degree in Business Administration both by CETYS Universidad. In 2015 she became an entrepreneur in the furniture industrial sector, offering contract manufacturing services to the US market. Her professional path has led her to become a mentor for entrepreneurs and non profit civil organizations. She is a counselor at CANACINTRA Tijuana (Industrial Chamber), one of the initial founders and active member of the Industrial Business Woman Committee and the employment route for refugees (a special project with UN and Asylum Access México). Currently, she is the Business Incubator Coordinator at CETYS Universidad Campus Tijuana.

References

- Chan Kim, W. y Mauborgne, R. (2005). Blue Ocean Strategy: How to Create Uncontested Market Space and Make Competition Irrelevant. Harvard Business Review Press.

- Castro, R.A. et.al. (2017). Aprendiendo a emprender. Pearson.

- Chan Kim, W. y Mauborgne, R. (2017). Blue Ocean Shift: Beyond Competing - Proven Steps to Inspire Confidence and Seize New Growth. Hachette Books

- Durazo-Watanabe, E. (2022). Patrocinadores, políticas públicas y herramientas para el escalamiento e internacionalización. CETYS Universidad, Tijuana Innovadora y CIPE.

- Greffe, X. (2006). Gestión de empresas creativas. OMPI

- Godin, S. (2019). La vaca púrpura. Booket Paidós.

- Jáuregui, L. (2017). Emprendimiento en comercio electrónico. ¿Por qué es una buena idea pensar en comercializar tu producto en el comercio electrónico? En En Castro, R. et al, Aprendiendo a emprender (149-166). Pearson.

- Hernández, A. (2022) Gestión de Derechos de autor y propiedad intelectual. En Cham, K. y Castillo, L. (ed.) Manual del Emprendedor. Roadmap para emprender y escalar en las industrias culturales y creativas. Tijuana Innovadora y CIPE.

- Kelly, K. (2008, marzo 4). 1,000 True Fans. https://kk.org/thetechnium/1000-true-fans/ (QR24)

- Laoyan, S. (2021, septiembre, 10). 27 métricas clave para el éxito de tu negocio. Anasa.

https://asana.com/es/resources/success-metrics-exam ples (QR25)

- Longhurst, J. (2017). 1000 true Fans. Kindle.

- Luzardo, A. y Funes, G. (2019). Emprendimientos tecnocreativos. Creatividad y tecnología, ¿aliados o enemigos?. Banco interamericano de Desarrollo.

https://publications.iadb.org/es/emprendimientos-tecn ocreativos-creatividad-ytecnologia-aliados-o-enemigos (QR26)

- Moncada, J. (2017). La esencia de la planeación. En Castro, R. et al, Aprendiendo a emprender (41-52). Pearson.

- Osterwalder & Pigneur (2014). Generación de modelos de negocios. Deusto

- Price y Mujica (2018). Matchfunding: Una alternativa de financiamiento para las industrias creativas. Banco interamericano de Desarrollo.

https://publications.iadb.org/es/matchfunding-una-alte rnativa-de-financiamiento-paralas-industrias-creativas (QR27)

- Rachitsky. L. (2022a, julio 19). How to kickstart and scale a consumer business. Step 3: Craft your pitch. Lennys Newsletter.

https://www.lennysnewsletter.com/p/how-tokickstart-and-scale-a-consumer (QR28)

- Rachitsky. L. (2022b, agosto 16). Kickstarting and scaling a consumer business—Step 6: SCALE: Build your growth engine. Lennys Newsletter.

https://www.lennysnewsletter.com/p/growth-engines?tr iedSigningIn=true (QR29)

- Ries, E. (2012). El método Lean Start Up. Cómo crear empresas de éxito utilizando la innovación continua. Deusto

5 Sponsors, public policies, and scaling up and internationalization tools

Index

Cetys Universidad

Authors

Jorge Francisco Sánchez-Jofras

Ingrid Kuri-Alonso

Mayer Cabrera-Flores Eduardo A Durazo-Watanabe Alicia León-Pozo

Creta Cota-Cota

• Introduction

•

Public investment

International Funds

National Funds

Regional Funds

• Private Investment

Angel investment funds

Crowdfunding

Banking

Links

•

Public funding sources

Private funding sources

Crowdfunding funding sources

Lender sources

Autoría •

QRs •

Introduction

The cultural and creative industries have positioned themselves at a global level as a sector with the potential to become an engine for development. Since they use elements related to the essence of the regions where they are located, their products and services have a character of originality built on a track record over many years, making them dicult to replace and highly appreciated by consumers.

Another important component is the ability to innovate from a model based on local creative and cultural elements, but with a global reach and resonance. Among others, there are differentiating

and distinctive elements that give a unique character highly appreciated by consumers.

One of the most important elements of an organization is its resilience to endure over time, and its financial capacity is definitely one of the necessary factors to be able to remain in operation. While in most developed ecosystems there is a diversity of mechanisms that allow organizations to access different financing modalities, in cities in the process of developing the cultural and creative sector - Tuana is one of these examples - there are gaps that make these issues a new challenge to be faced.

Public Investment

Government investment in the cultural and creative sectors generates an important multiplier in the economy, and it its value as a contribution to the intangible heritage of the regions is undeniable. This sector contributes to employment, generates tax revenues and high value-added products and services that horizontally joins other sectors such as tourism, gastronomy or even other less obvious sectors such as manufacturing.

Art and culture also have the capacity to generate identity in marginalized communities and promote scaling up and social inclusion. The transmission of practices, knowledge and cognitive and socio-emotional skills, related to this sector, become an educational

dynamic that provides opportunities for economic and personal improvement to its participants. This undoubtedly justifies public investment because of the positive effects they have on community development.

Another important component in relation to public investment is distributive justice and facilitating access to infrastructure and cultural and creative resources in general. Within these considerations, the preservation of cultural assets for future generations must be taken into account. A fundamental element in sustainability, starting with public investment, is the access of producers to markets and entry barriers, but it is also desirable to integrate into this category the access of consumers to products and services.

International Funds

In the Americas, the cultural and creative industries generate an estimated US$124 billion dollars in revenues and 1.9 million jobs in Latin America and the Caribbean. At the international level, there are instances whose mission is to boost the financing of this sector. In general, it is possible to locate these instances focused on their own regions - such as the Creative Europe program of the or the European Commission Asian Cultural Council

UNESCO International Fund for Cultural , through the Diversity (IFCD), is one of the most active funders. The purpose of the IFCD is to promote sustainable development and poverty reduction in developing countries that are part of the 2005 Convention to which Mexico is a signatory. The IFCD1 supports projects aimed at fostering the creation of a dynamic cultural sector, mainly through activities that facilitate the introduction and/or development of policies and strategies that protect and promote the diversity of cultural expressions, as well as strengthening the institutional infrastructures deemed necessary to maintain the viability of this sector. Since 2010, the IFCD has financed 129 projects in 65 developing countries with more than US$9.4 million, covering a wide range of areas such as cultural policy development and implementation, capacity building for entrepreneurs, mapping and the creation of new business models.

Fondos Nacionales

In Mexico, the main agency for the promotion of culture is the , which issues several calls Secretaría de Cultura for proposals to finance projects, infrastructure and equipment. According to its website, it is the institution in charge of promoting and disseminating Mexico's artistic and cultural expressions, as well as projecting the country's presence abroad. It promotes education and artistic and cultural research and provides the infrastructure with decent spaces and services to make more intensive use of it. It works for the preservation, promotion and dissemination of heritage and diversity. It also supports artistic creation and the development of creative industries to strengthen the generation and access to goods and services, as well as promoting universal access to culture by taking advantage of the resources offered by digital technology.

The Inter-American Development Bank has financing initiatives focused on the cultural and creative sector through entrepreneurship contests; the acquisition of works of art from creators in the region; community work through philanthropy, volunteering, donations and fundraising campaigns; the organization of art exhibitions and has implemented the Demand Solutions program with the goal of bringing together the world's most creative minds to discuss and share innovative solutions to address development challenges in the region. Each year, the IDB selects some of the most innovative startups in the region and invites them to present their idea and compete for prizes at Venture Night.

The promotes Organization of American States initiatives that integrate creative and cultural industries through the organization called Young Americas Business Trust who through leadership programs, business skills development, business contests and diverse alliances are active in the ecosystem where creativity is undoubtedly a central asset.

Source: UNESCO website, IFCD https://es.unesco.org/creativity/ifcd/what-is (QR1)

Among the initiatives of the Secretaría de Cultura is Mexico Creativo which seeks to stimulate the cultural and creative economy from a rich, diverse and sustainable socio-cultural ecosystem, as well as the goal of reactivating the cultural and creative ecosystem through the dynamization of its value chains.

Through projects known as the Nodo Creativo, they promote training, incubation, certification and support for sustainable projects.

Additionally, they have Observatorio Creativo which goal is to characterize the ecosystem and its value chains; measurement and creation of indicators focused on the economy.

Instituto Nacional de Bellas Artes y Literatura is the Mexican government's cultural agency responsible for stimulating artistic production, promoting the dissemination of the arts and organizing artistic education throughout the country. To disseminate and divulge the arts, literature and the national artistic heritage; artistic education and research, diversity and equal rights. Another related institution is the Fondo Nacional para el Fomento de las Artesanías, which is responsible for promoting the country's handicraft activity and contributing to the generation of a higher

Regional Funds

At a state level, Baja California has the Secretaría de Cultura, Instituto de Cultura de Baja which through its California has the purpose of preserving, promoting and disseminating culture and the arts, as well as to generate the necessary conditions for society to have access to goods, services, artistic and cultural activities as essential elements of integral human development, within a framework of respect and tolerance for the cultural diversity that identifies us as a State. This entity issues several calls for proposals for the cultural sector.

In Tuana, the Instituto Municipal de Arte y Cultura (IMAC), which is part of the Secretaría de Desarrollo

Private Investment

Museums and other cultural heritage sites have increasingly been seen as drivers of community regeneration and thus as a source of income and new jobs. Cultural heritage and a vibrant creative economy can increase territorial attractiveness for talent and investment. At the same time, the role of culture in stimulating innovation, as well as in supporting wellbeing, health, lifelong learning and the creation of social capital, has become prominent.

This economy relies on creative talent as a primary source of value. The demand for skilled creative workers is strong and rapidly evolving in all sectors of the

family income for artisans through their human, social and economic development.

In addition, there are public agencies that support ventures where the creative component generates added value and enables these types of projects to access resources. One of these entities is the Secretaría de Economía Entrepreneur System through its new created to receive, process and follow up on your requests for support to access the National Entrepreneur Fund's calls for proposals.

Social Municipal (DESOM), is in charge of this area and its purpose is to be a bridge between artists and the people of Tuana, as well as offering cultural spaces and activities for the enjoyment of the citizens. IMAC is responsible for the four Casas de la Cultura -Tuana, Playas de Tuana, San Antonio de los Buenos and El Pípila-, the Municipal Libraries Network, as well as the Archivo Histórico de Tuana (AHT), the Museo de Historia de Tuana (MuHTi) and the Galleries in its different spaces. It also hosts the Escuela de Música del Noroeste project, which offers the Higher Technical University Program and the Technical Bachelor's Degree in Music.

economy. To reap these job creation benefits, cities and regions need more reliable data to shape their development policies that support independent businesses and service providers.

The cultural and creative sector is largely composed of micro, small and medium-sized enterprises and selfemployed entrepreneurs. Such firms coexist with some large global players. There is a strong demand for better and more reliable data, at the regional level, on the performance of these firms, as well as on ways to customize business support ecosystems to their specific needs.

Angel Investment Funds

An angel investor is a person with a large amount of wealth who provides financial backing to small start-ups or entrepreneurs, usually in exchange for equity in the company. Angel investors are often found among an entrepreneur's family and friends. The funds provided by angel investors can be a one-time investment to help get the business off the ground or an ongoing infusion to support and carry the company through its dicult early stages.

Mexico has an important network of angel investors that enable projects with growth potential and therefore profitability. Given the current size of the sector, the

Crowdfunding

Crowdfunding is an English term that refers to a type of collective financing carried out through online platforms, in which small contributions are used to finance a certain project or initiative. Crowdfunding connects people who have a business idea and need funding with others who are willing to invest a certain amount of money in exchange for a reward, not always monetary. In this regard, there is no limitation: on the platforms you can see crowdfunding campaigns aimed at raising the money needed to carry out musical projects, publish a book of photographs or other creative projects.

most appropriate funds are those corresponding to the seed stage. In this modality and as its name indicates, "seed" or "angel" investors are usually the first investors in a business, followed by risk capital firms and finally private equity firms.

Angel or seed investors participate in businesses that are at such an early stage that they may have no revenues and few or no customers. They generally have a well-developed business plan, a prototype, a beta test, a minimum viable product (MVP) or are at a similar level of development. Some of the companies, however, may have revenues or even cash flow but it is rare.

While there may be variations, the process is similar for all: a crowdfunding platform is chosen; the project is presented with a description, time required to put it into operation, reward modality; is published and it is at this time that the project campaign will be available; finally there is a closure of the project whether or not the totality of the requested funds has been obtained. The platform is responsible for managing and ensuring that the reward model is fulfilled or, in the event that it is not carried out, that contributions are returned.

The most common types are shown below:

Reward Crowdfunding

This is the most common crowdfunding model. In this type of campaign, investors make a monetary contribution in exchange for a product or service related to the project in which they are investing, generally having preferential access to the product or service offered.

Shares crowdfunding

It is another of the most used kinds. Through this model, the micro-investor receives as consideration the possibility of being part of the project as a shareholder through shares or participations in the company. By becoming shareholders of the company, investors receive a percentage of the profits, depending on the contribution made.

Donation crowdfunding Loan crowdfunding

There are a wide variety of projects related to social causes or solidarity projects that follow this financing model. In other words, the idea or project is presented, and donors contribute out of empathy for the cause, without expecting anything in return

Also known as crowdlending, it is the model most similar to the traditional financial system. In return, the lender is offered an interest rate on the money lent, although this interest rate is generally much lower than the market rate

Banking

There is currently an increase in fintech entities that offer credit products, accounts and other services very similar to those of traditional banks but in a digital version. Challenger banks are financial institutions with a banking license

Users in this sector have increased significantly due to the numerous advantages they have, among them are the low (or even zero) costs of these entities, as well as the minimum requirements for the creation of an account.

Since they are entities without branches, all transactions and operations are carried out through the app and customer service is online. In general, the account opening is done in a matter of minutes and without the usual bureaucracy of traditional entities.

One strategy they use is the offer of accounts with lower commissions and no linkage, in addition to the fact that international transfers are usually cheaper or free. By having a banking license, customers have an account and not only cards, although in general most transactions and procedures are carried out through the app

An additional benefit that has been seen is the possibility of reaching agreements with certain businesses and companies so that customers may receive discounts and promotions. This speaks of an evolution to adapt to the requests and needs of customers, so that, in the case of the cultural and creative sector, these banking options could be a better alternative than traditional banking, offering generic and standardized financial products.

Links to public funding sources

Support for The Cultural Infrastructure Of The States (PAICE)

Source:https://www.cultura.gob.mx/gobmx/co nvocatorias/detalle/3399/paice-2022 (QR2)

Budget: $35,000,000

Organization: Secretaría de Cultura del Gobierno de México

Beneficiaries: State and municipal governments, Labor Unions, SMEs, Large companies, third sector

Description: Secretaría de Cultura, through its Dirección General de Vinculación Cultural, in order to contribute to

Art and culture facing covid

Source:https://www.gob.mx/cultura/prensa/art e-ycultura-frente-al-covid-convocatoria-que- contribuye-ala-reactivacion-economica-del- sector-culturalsudcaliforniano?idiom=es

Budget: Undefined

Organization: Secretaría de Cultura del Gobierno de México / Instituto Sudcaliforniano de Cultura / Apoyo a Instituciones Estatales de Cultura (AIEC)

Beneficiaries: Creators, artistic community and cultural agents of Baja California Sur with at least five years of artistic trajectory

art creation or strengthening of cultural infrastructure with the aim of reducing the existing inequality in cultural development, and to take advantage of or to create spaces dedicated to art and culture, calls for state and municipal governments and mayors' oces of Mexico City, state public universities, as well as all those Civil Society Organizations that have among their constituent objects the promotion and encouragement of the arts and culture

Description: Artisans, visual artists, performing artists, cultural managers and agents of legal age, with a minimum residence and artistic trajectory of five years in the state of Baja California Sur, may participate, for the realization of a social retribution project in one of the two proposed formats: virtual (video of 10 to 20 minutes that will be disseminated through the social networks of the Instituto Sudcaliforniano de Cultura) and on-site (to be executed when permitted by the state health authority), according to their artistic performance framed in the following disciplines: performing arts, visual arts, literature and literary promotion and popular art.

Function bank

Source: https://www.gob.mx/cultura/prensa/l asecretaria-de-cultura-mantiene- apoyospara-elsector-durante-contingencia- por-covid-19

Budget: Undefined

Organization: Secretaría de Cultura del Gobierno de México

CNDCI/ "Alas de lagarta" Call for Submissions (Children's and Youth Literature)

Source:https://sic cultura gob.mx/ficha.phpta ble=convocatoria&table_id=1172&disciplina (QR3)

Budget: Undefined

Organization: Secretaria de Cultura

Folk art contests

Source: https://www gob.mx/fonart? tab=program-v3program-v3-concursos-de-arte-popular (QR4)

Budget: Undefined

Organization: Fondo Nacional para el Fomento de las Artesanías

Beneficiaries: Individuals, SMEs, third sector.

CONTIGO EN LA DISTANCIA / Culture from home / Calls for artists and creators

Source: https://contigoenladistancia. cultura.gob.mx/detalle/convocatoria-para creadores-yartistas (QR5)

Budget: $27,020,000

Organization: Secretaría de Cultura del Gobierno de México

Call for proposals for the Support of Cultural Infrastructure in the States Program (SCISP)

Source:https://sic.cultura.gob.mx/ficha.phptable=convo catoria&table_id=807&disciplina= (QR6)

Budget: Undefined

Agency: Comisión Nacional de Ciencia y Tecnología

Beneficiaries: State governments, municipal governments, mayors' oces in Mexico City and state public universities.

DGCP/ Municipal and Community Cultures Support Program (PACMYC)

Source:https://sic.cultura.gob.mx/ficha.phptable=convo catoria&table_id=215&disciplina= (QR7)

Budget: Undefined

Agency: Secretaria de Cultura

Beneficiaries: Individuals

Beneficiaries: Individuals, SMEs, third sector

Descripción: The "Function Bank" was announced so that artists, creators, lecturers, etc., contracted for the dates between March 20 and April 20 can receive their payments on time and make up their presentations at another time of the year, or perform them remotely.

Beneficiaries: Individuals

Description: Authors of Mexican nationality may participate with no more than two works of their own authorship, unpublished and with a free theme.

Description: Through these contests, it seeks to recognize artisans who are distinguished by the preservation, rescue or innovation of handicrafts, as well as those who improve work techniques and recover the use and sustainable use of materials.

Beneficiaries: Individuals

Description: Secretaría de Cultura has prepared for its public a digital culture space with free access to information on tours of museums and archaeological sites, films, books, concerts, conferences, documentaries, plays, audios, applications, among other things.

Description: The purpose is to contribute to giving life to the cultural infrastructure that is unused or in disuse and to create spaces dedicated to art and culture in districts that do not have a sucient cultural infrastructure.

Description: This program serves indigenous people, Afro-descendants, vulnerable groups, or communities belonging to rural and urban areas interested in implementing an intervention or cultural project.

DGSMPC/ Support to Communities for the Restoration of Monuments and Artistic Heritage Fund (FOREMOBA)

Source:https://sic cultura gob.mx/ficha.phptable=convo catoria&table_id=658&disciplina= Budget: Undefined

Agency: Secretaria de Cultura

Beneficiaries: State and municipal governments, Mexico City mayor's oces, Civil Society Organizations (CSOs),

Independent stage spaces in resilience

Source: https://contigoenladistancia.cultura.go b.mx/detalle/espacios-escenicos- independientes-enresiliencia (QR8)

Budget: Undefined

Agency: Secretaría de Cultura

Beneficiaries: Established companies, theater collectives and independent scenic spaces with verifiable experience of three years of continuous work. Independent stage spaces that do not have a resident

and organized communities.

Description: FOREMOBA will participate with up to one third of the economic support to tripartite projects between FOREMOBA and two additional entities (state government, municipalities, municipalities, CSOs and/or communities), as long as the counterparts contribute an equal or greater amount.

company may participate in this call for proposals by forming a working group or expressly inviting a group as a resident.

Description: The main objectives of this program are to support the activity of the country's independent stage spaces during the health contingency derived from the spread of COVID-19 and to promote the creation and development of creative strategies for pre-production, rehearsal, and presentation through digital media and information and communication technologies.

Fiscal stimulus for investment projects in national film production and distribution (eficine).

Source:https://www estimulosfiscales.hacien da.gob.mx/es/efiscales/eficine (QR9)

Budget: Undefined

Agency: Secretaria de Hacienda y Crédito Público

Beneficiaries: SMEs, Large companies

Description: A benefit granted to the film industry for the production and distribution of feature films consists of applying a tax credit for the amount contributed to an investment project in production or distribution by an Income Tax taxpayer.

Fiscal stimulus for investment projects in cultural productions (efiartes)

Source:https://www estimulosfiscales.hacien da.gob.mx/es/efiscales/efiartes (QR10)

Agency: Secretaría de Hacienda y Crédito Público

Beneficiaries: Individuals, SMEs

Description: It is a benefit granted to the creation and

Creative Europe

Source: https://culture.ec.europa.eu/creative- europe

Budget: 2.440 million euros (QR11)

Agency: European Union/Commission European

Beneficiaries: Cultural and creative organizations from member and non-member states of the European Union, as well as the countries of the European Economic Area, its potential candidate countries, and those belonging to the European Neighborhood Policy ( these last three cases are subject to various conditions).

production of the different arts, such as visual arts, dance, music, and theater; and in the edition and publication of national literary works, consisting of applying a tax credit for the amount contributed by an Income Tax taxpayer to an investment project.

Description: This program seeks to invest in actions that reinforce cultural diversity and respond to the needs and challenges of the cultural and creative sectors. The main objectives of the program are to safeguard, develop and promote European cultural and linguistic diversity and heritage and to increase the competitiveness and economic potential of the cultural and creative sectors, in particular the audiovisual sector.

FONCA/ Conacyt Culture Scholarships: Creators of the Future (scholarships for study abroad)

Source: https://sic cultura gob.mx/ficha.php?

table=convocatoria&table_id=1184&disciplina= (QR12)

Budget: Undefined

Agency: Comisión Nacional de Ciencia y Tecnología

Beneficiaries: Individuals

FONCA/ Verbal Arts Call for Proposals

Source:https://sic cultura gob.mx/ficha.php?

table=convocatoria&table_id=1176&disciplina= (QR13)

Budget: Undefined

Agency: Secretaría de Cultura

Beneficiaries: Members of communities where an indigenous language at high risk of disappearing is spoken

FONCA/Scenic creators

Source: https://sic.cultura.gob.mx/ficha.php?

table=convocatoria&table_id=285&disciplina= (QR14)

Budget: Undefined

Agency: Secretaría de Cultura

Description: This program was created to offer economic support for the training of Mexican professionals at the doctoral and master's levels, in the modality of training scholarships in full-time face-toface programs abroad.

Description: Interested parties must submit projects to form records of oral, literary, or artistic expressions of languages at risk of disappearing. Up to 23 grants for $100,000 will be awarded to each project.

Beneficiaries: Mexican citizens and foreigners who, by means of documents issued by Secretaría de Gobernación, prove their status as immigrants or immigrants in the country

Description: Awarding up to 90 economic incentives of different amounts according to the category in which the participant has enrolled.

FONCA/ Promotion of Cultural Projects and Co-investments

Source: https://sic cultura gob.mx/ficha.php?

table=convocatoria&table_id=284&disciplina= (QR15)

Budget: Undefined

Agency: Secretaría de Cultura

Beneficiaries: Creators, performers, researchers, managers, promoters, educators, curators, groups,

FONCA/ Young Creators

Source:https://sic.cultura.gob.mx/ficha.php

table=convocatoria&table_id=6&disciplina= (QR16)

Budget: Undefined

Agency: Secretaría de Cultura

Beneficiaries: Individuals between 18 and 34 years of age

FONCA/ Mexico on Stage. Artistic groups

Source:https://sic.cultura.gob.mx/ficha.php?

table=convocatoria&table_id=490&disciplina= (QR17)

Budget: Undefined

Agency: Secretaría de Cultura

Beneficiaries: Professional artistic groups of the country in one of the following disciplines: circus, dance, music, opera, interdisciplinary scenic and theater.

independent cultural spaces, among others.

Description: Up to $250,000 Mexican pesos offered to initiatives that do not have other financial contributions. Co-investment: up to $750,000 Mexican pesos are offered to projects with other contributions in cash or in kind.

Description: Up to 225 grants will be awarded. The selected individuals will receive a monthly economic amount of $8,532.20, for a period of twelve months.

Description: 10 grants will be awarded to artistic groups with a minimum trajectory of five years, constituted as legal entities that present projects whose realization requires and justifies financing of $1'740,000; in turn, 48 economic incentives will be awarded to artistic groups with a minimum trajectory of five years, constituted as legal entities, that present projects whose realization requires and justifies financing of $1'200,000.

FONCA/ Translation Support Program (PROTRAD)

Source: https://sic.cultura.gob.mx/ficha.php?

table=convocatoria&table_id=1&disciplina= (QR18)

Budget: Undefined

Agency: Secretaria de Cultura

FONCA/ Artistic Residencies

Source: Sistema de Información Cultural

Budget: Undefined

Agency: Secretaría de Cultura

FONCA/ National System of Art Creators

Source:https://sic cultura gob.mx/ficha.php? table=convocatoria&table_id=461&disciplina= (QR19)

Budget: Undefined

Agency: Secretaría de Cultura

Beneficiaries: Artists dedicated to creation in the following disciplines: lyrics, lyrics in indigenous

Beneficiaries: Both Mexican and foreign publishers. Description: This program aims to contribute to the international promotion and dissemination of national culture and to promote cultural exchange

Beneficiaries: Individuals

Description: Delivery of economic stimuli and provision of stays.

languages, choreography, dramaturgy, audiovisual media, visual arts, musical composition, and architecture

Description: Delivery of incentives for up to 200 projects in the form of a monthly grant of $32,173.00 , which will be maintained for up to three years.

IMCINE/ Calls for Production Support of the Budgetary Program for the Promotion of Mexican

Cinema FOCINE/IMCINE: New routes, new stories

Source:https://sic.cultura.gob.mx/ficha.phptab le=convocatoria&table_id=1164&disciplina= (QR20)

Budget: Undefined

Agency: Secretaria de Cultura

Beneficiaries: Individuals and legal entities

Description: These calls seek to boost the development of the industry and the economy of the sector in all its modalities, you can participate in the following

Covid-19 impact survey on the cultural and creative economies sector

Source:https://mexicocreativo.cultura.gob.mx/i nicio/observatorio/sondeo-020/ (QR21)

Budget: Undefined

Agency: Secretaría de Cultura

Beneficiaries: All audiences.

Description: Through a series of public dialogues, we seek to put into perspective the information gathered in the survey, along with other surveys and studies that

modalities: financial consolidation of feature films; production of fiction feature films, production of documentary feature films; pre-production and production of short and feature animation films; film production for children and adolescents; production of debut films from film schools or with a film specialty; production of short films by region and with a trajectory; post-production of feature and short films; production of feature films in collaboration with the states.

have been applied in Mexico, in other countries and initiatives of international organizations. Starting with a dialogue on the diversity of results obtained with these tools, we wanted to focus on the significant findings that can account for the complex issues we face. Confronting, comparing and seeking complementarity of data as the way to build new solutions, strategic lines of action for a near future.

Links to private funding sources

Amplifica Capital

Source: https://www.amplifica.capital/ (QR22)

Organization: Dedicated to investing in seed stage companies in Mexico and Latin America that increase women's participation and opportunities in the economy

Sectors: Preferably: Agtech, Fintech, Edtech, Cleantech and Women's Health

AngelHub

Source: https://www.angelhub.mx/ (QR23)

Organization: AngelHub is a network of Angel Investors Clubs with local presence in several cities in Mexico

Sectors: Unspecified

Angel Ventures

Source: https://www.angelventures.vc/ (QR24)

Organization: Founded in 2008, AV is one of the most active and influential Mexican venture capital firms in Latin America. The firm invests in early-stage or earlygrowth companies by becoming a leading Seed Series and Series A investor in start-ups that drive innovative business models tailored to the Latin American market.

Sectors: TIC, E-Commerce, FinTech, IoT, Inteligencia Artificial y BioTech (AgriTech, FoodTech y Medio Ambiente).

Angel Investment Network

Source: https://www.angelinvestmentnetwork.c om.mx/ (QR25)

Organizations: They bring together companies seeking investment and investors with the capital, contacts, and knowledge to help them succeed.

Sectors: Software, Food and Beverages, Real Estate, Hospitality and Restaurants, Technology, Retail

ArkFund

Source: https://www.arkfund.co/ (QR26)

Organization: Pre-seed and seed stage fund that invests USD $50 thousand tickets

Sectors: Fintech, Consumer, Healthcare, Edtech, and Enterprise Software.

Source: https://avalancha ventures/ (QR27)

Organization: It invests tickets of USD $50 thousand in companies that use technology to break into their respective markets.

Sectors: Investment banking, energy, finance, food and telecommunications.

Avalancha Venture Balero

Source: https://balero.us/ (QR28)

Organization: It invests tickets of between USD $75,000 and USD $125,000 in Latin American companies that use technology to solve a problem.

Sectors: Health, education and entertainment.

Carabela

Source: https://www carabela vc/ (QR29)

Organization: Invest in companies that seek to impact the lives of millions of Latin American people through technology. They invest tickets between 2 and 3 million Mexican pesos.

Sectors: TIC, E-Commerce, Fintech, Insurtech, Edtech, Hrtech, Proptech, Foodtech y Cleantech.

Patreon

Source: https://www.patreon com/es-ES (QR30)

Description: A platform for creators that allows them to earn money for what they are already creating (webcomics, videos, songs...). Fans pay per month or per publication created, so creators earn income. In the case of patrons, Patreon offers them the possibility to join the community of their favorite creators and pay them to continue doing the work they love so much. In this way, the creator gets a regular source of income (every time he publishes something new) while the sponsor becomes a patron of the arts.

Snowball

Source: https://www.snowball.mx/ (QR31)

Description: Investment community where you can fund ideas and invest in entrepreneurs in Mexico.

Links to lender sources

Source: (QR32) https://www albo.mx/

Description: Albo is a Mexican Neobank that offers digital financial services, virtual debit card, as well as a platform for companies where it is possible to make payments, transfers, deposits, and more banking transactions through the Albo App and a physical card backed by Mastercard International.

Source: (QR33) https://www.clara.com.mx/

Descripción: Business credit card, payment solution and expense control platform. Offers physical and virtual credit cards.

Creditea

Source: (QR34) https://www creditea.mx/

Descripción: Online personal loan company belonging to the International Personal Finance PLC financial group with a presence in Spain, Poland, Australia, Finland, Estonia, Lithuania, Latvia, and Mexico.

Source: (QR35) https://cuenca.com/

Description: Cuenca offers banking services primarily to young people in Mexico. Investors participate with capital that contributes to the creation of a new financial culture that gives access to all the services that previously only a few had.

DUX Capital

Source: (QR36) https://www.duxcapital.vc/

Organization: Focuses on investing in potential seed companies in Latin America and the United States.

Sectors: Consumption and retail, technology and impact.Sectores: Consumo y retail, tecnología e impacto

Fondeadora

Source: https://fondeadora.com/ (QR37)

Organization: Fully digital banking alternative. They have more than 250,000 users and is currently the fastest growing challenger bank in Mexico. They are backed by leading global investors such as Google (Gradient Ventures), Portag3 Ventures, and Ignia. Ventures, e Ignia.

Klar

Source: https://www.klar.mx/ (QR38)

Description: Virtual bank in Mexico - Neobank-, which allows to request a debit card and open a digital account in an expeditious manner without annuity or commissions. As a virtual bank, it does not offer face-toface service or physical branches, so all contact, customer service or contracting is done 100% digitally through its website

Kubo Financiero

Source: (QR39) https://www.kubofinanciero com/

Description: Multi-product platform, that offers access to savings, investment, loans, debit and transfers.

LEAP Global Partners

Source: http://www.leapglobalpartners.com/ (QR40)

Organization: It focuses on catalyzing new companies targeting areas of interest throughout the Americas.

Sectors: Fintech, Marketplaces y Saas

Polígono Capital

Source: (QR41) https://www.poligonocapital.com/

Organization: Its purpose is to invest in early-stage companies that use technology as a means to achieve their objectives in the market.

Sectors: Capital markets, credit, real estate and venture capital.

Yotepresto

Source: https://www yotepresto com/ (QR42)

Description: Directly connects people who need a loan with people who want to invest their money. The goals are that the borrower pays less interest and the investor earns attractive returns.

Redwood Ventures

Source: (QR43) https://www.redwood.ventures/portfolio/ Organization: They seek to invest in any company that uses technology to develop its industry.

Sectors: Unspecified

Albo Clara Cuenca

Soldier Field Angels

Source:

(QR44) https://www.soldiersfieldangels.com/

Organization: It focuses on investing in high-impact seed companies in Mexico and throughout Latin America

Stella Maris Partners

Source: https://www.stellamaris.mx/ (QR45)

Organization: Focuses on investing in start-up companies with great potential and the desire to change Mexico and the world.

Sectors: Sustainable development, automotive. Sectors: Unspecified

Links to crowdfunding sources

Donadora

Source: (QR46) https://donadora.org/

Description: There are several impact categories within which funds are raised to address everything from health issues, community, cultural, sports, and sustainability projects to animal rescue

Fondify

Source: (QR47) https://fondify org/es/ Description: Investment community focused on NGO's with social causes.

Ideame

Source: (QR48) https://www.idea.me/

Organization: Specialized platform in Latin America that connects entrepreneurs who need money to finance their ideas with collaborators who contribute small sums of money to be part of the initiative and receive a reward in return.

Goteo

Source: https://www.goteo.org/ (QR49)

Descripción: Crowdfunding or collective financing platform (monetary contributions) and distributed collaboration (services, infrastructures, micro-tasks) for projects that, in addition to offering individual rewards, generate collective returns. That is, they promote the commons, open source, and/or free knowledge. As a member of this network you can fulfill one or several roles: promoting a project, co-financing it, or collaborating in its achievement.

Kickstarter

Source: https://www.kickstarter.com/ mexico (QR50)

Descripción: The Seguimos Activos initiative is aimed at supporting independent cultural spaces or businesses during the COVID-19 crisis while staying connected to your community. Music venues, cinemas, art galleries, restaurants, art and performance spaces, maker spaces, conferences, festivals, bookstores, and more are invited to post projects.