Unit 11

Whilst choosing m unit 11 question I was unaware of the impact funding has on the performing arts industry
It was interesting to me to find out the politics behind the government and revenue
Funding and how the economy will change as a result of brexit
For me politics has never appealed to my liking however surprisingly it has a wife impact on the performing arts industry
The research I will be carrying out will b from primary and secondary sources and I will b exceeding my focus on the global & economical way the funding system operated & the pressure dra school will have as a result of brexit
Brexit will cause the departure
Of the United Kingdom from the European Union
From this will come many challenges for the entertainment industry & as funding may come from exterior sources(outside of the U.K.) I do believe that brexit will have a strong impact

I do believe funding is nessesary for theatres,whilst doing my research I found out that the RSC creates only a 4 million profit with an income of "69.1 million" and an astonishing "65.1 million" outcome.

There are many ways to fund theatres:
Associated income-
This is a way of "renting out" skills on behalf of the company from the company members
For example if a company member is hired out for £50 an hour and you pay them £25,the company is making a profit of £25
This gives out equality in both the brand and position.
So what are the pros?
It is an amazing way to brand your theatre whilst making a good profit,this regime allows member to come and go,whilst maintaining a regular service
The members will be satisfied because of this opportunity and you are adding good value to your theatre
Cons-
It can take away from the purpose of the brand,a lot of marketing has to be put into it to make it a success.
There are several contracting laws to be aware of with associated income.

Investments
This is when someone puts in money with the goal of making a larger profit than the sum that they put in.
There are many investment strategies that people use E.g crowdfunding
Pros:
Init would be a partnership in the sence that your investor is on the same journey with you
It's a great starting point having an investor,for support and also maybe even advice.
Cons:
An investor will only put there money in if they can see a future with your theatre,so it's fair to say your theatre must have a previous success rate or a clear foreseeable future
Networking outside your theatre circles is important when searching for an investor,you also have to understand and look into the codes of conduct and investment contracts

Loans-
The fear for borrowers is that when brexit arrives an interest rate could rise which could push up the % payable to borrow the exact same amount of money.
Pro-
Loans can be a very quick source of cash
Typically personal loans will have a low % rate
Your able to pay back the money you owe in instalments and not all at once
Approval for loans are normally decided cry quickly after a simple credit check is done
Cons-
You have to pay back everything you owe

Inthe 2018 telegraph newspaper
The aa feared that fuel costs will rise an astonishing £500 per year,what has this got to do with funding?well with costs rising in the energy secretary it is likely it will rise in other places such as electricity,housing.And with costs souring the government is sure to raise interest within loans.

public /private funding
Private funding comes from -Local Authorities. The second largest supporter of the arts in England after the Arts Council, local authorities offer discretionary support to individuals and organisations. I.e This won't effect brexit )
How ever some foundations such as
the Paul hamlyn foundation has three priority areas of funding: the arts in the UK, education in the UK, and overseas projects that are concentrated in India
-due to international projects linking with funding this will have a down side fall due to brexit
Private equity funding
Is the equity capital that is not quoted on public exchange private equity  finders invest directly into private companies and/or buyouts of public companies.
Institutional & accredited investors usually are able to invest a lot of money over a long period of time.
The private equity funding regime can be applied to a large range of companys
Pros-
There will be many patient investors as there will be a transfer of large sums of money
Normally investors of private equity funding will have made sure there is a clear profitable future within the company.
Cons
Within the uk there are many investors of private equity funding,however some investors in the uk may not think it would be a suitable investment so an overseas investor may be needed,this may be a problem as a result of brexit as transferring money may become difficult.
Private equity can run into thousands of pounds however you could end up loosing control of your company.





Public funding
What is public funding?



 are many ways to fund theatres:
Associated income-
This is a way of "renting out" skills on behalf of the company from the company members
For example if a company member is hired out for £50 an hour and you pay them £25,the company is making a profit of £25
This gives out equality in both the brand and position.
Shat are the pros?
It is an amazing way to brand your theatre whilst making a good
It can take away from the purpose of the brand,a lot of marketing has to be put into it to make it a success.
There are several contracting laws to be aware of with associated income.

Investments
This is when someone puts in money with the goal of making a larger profit than the sum that they put in.
There are many investment strategies that people use E.g crowdfunding
Pros:
Init would be a partnership in the sence that your investor is on the same journey with you
It's a great starting point having an investor,for support and also maybe even advice.
Cons:
An investor will only put there money in if they can see a future with your theatre,so it's fair to say your theatre must have a previous success rate or a clear foreseeable future.
Networking outside your theatre circles is important when searching for an investor,you also have to understand and look into the codes of conduct and investment contracts

Loans-

Inthe 2018 telegraph newspaper
The aa feared that fuel costs will rise an astonishing £500 per year,what has this got to do with funding?well with costs rising in the energy secretary it is likely it will rise in other places such as electricity,housing.And with costs souring the government is sure to raise interest within loans.

A senior research associate dr Highman argues that the uncertainty over future EU research funds calls for a rethinking of EU research and development,saying tht brexit will have a downfall effect on higher education partly due to the movement of students and staff

Overall I do believe that brexit will have a strong effect on the economy
In 2017 The UK economy expanded by 0.4 per cent in the third quarter of the year, official data showed.
Also in November, the Autumn Budget saw Chancellor Philip Hammond announce £25bn in extra spending to prop up the economy

Funding in the arts industry show for a