Financing Preferences of Individual Entrepreneurs: Music careers in the spotlight

Abstract

The production of popular music provides an interesting case for studying the role of individuals in financing decisions. Intellectual property takes a central position in music entrepreneurship, with a digital transformation to music streaming impacting the sector. Decision-making is a joint process between managers and artists, and self-employed creatives are of growing importance for economic development. However, detailed data on financing decisions of individuals is scarce. In this study, we qualitatively identify and explain the financing preferences of musicians and their managers at or around career-defining moments. We used Atlas.ti to code interviews with 39 music artists and managers in Belgium, the Netherlands and Norway. The data shows that the financing preferences of participants are shaped by industry-specific uncertainty and decision-influencing attributes such as life events and economic dependence. In the industry-specific context, we confirm and elaborate on existing theoretical explanations around path-dependence, personal circumstances, signalling, the role of advice, discouragement and the resource-based view.