March 23rd, 2017
Kickstarter’s 30,000 Job Impact on the Creative Economy
A new study by the University of Pennsylvania provides the first comprehensive look at how the Kickstarter community impacts the creative economy.
The study finds that Kickstarter projects have:
- Employed 283,000 part-time collaborators in bringing creative projects to life.
- Created 8,800 new companies and nonprofits, and 29,600 full-time jobs.
- Generated more than $5.3 billion in direct economic impact for those creators and their communities.
Here are the key findings from the research.
Paying Creative Collaborators
A long-running challenge in the world of creative projects is the ability for collaborators to be paid for their contributions. Editors, illustrators, backing musicians, crew, and other creative collaborators are often unpaid for their work on creative projects. Not so with Kickstarter-funded creative projects. Respondents to the UPenn study reported that Kickstarter enabled them to pay collaborators who they would not have otherwise been able to pay. Overall, Kickstarter projects have employed approximately 283,000 temporary workers.
While many Kickstarter projects are one-offs (films, books, albums, etc.), others are becoming ongoing, sustainable ventures that create new jobs. For every 1,000 Kickstarter projects that have been brought to life, 190 founders now work alongside 82 full-time employees. As of June 2016, an estimated 29,600 new full-time creative careers have stemmed from Kickstarter projects.
An estimated 8,800 new companies and nonprofits have gotten their start through Kickstarter. Among them are businesses as diverse as Palmer Luckey's Oculus, which brought virtual reality into the mainstream; Radiotopia, an inspired podcast network of independent storytellers giving voice to subjects not well covered in traditional public media; Debbie Sterling's GoldieBlox, which creates games and entertainment designed to develop early interest in engineering; Eric Migicovsky's Pebble Technology, which pioneered the smartwatch category; Kazoo, a beautifully imagined print magazine on a mission to inspire strong, smart, fierce young women; and Chicken Town, a London-based restaurant and social enterprise committed to serving healthful, locally sourced meals while paying its staff living wages.
Eighty-two percent of the organizations created through Kickstarter continue to operate today.
Another way to assess the Kickstarter community's impact is to examine whether creators earn revenue from their project after bringing it to life. Seven out of ten creators reported such earnings. Every dollar pledged to a successfully funded project resulted in $2.46 in additional revenue for the creator, leading to an estimated $5.3 billion in additional economic activity.
Career Advancement and Mobility
Another exciting finding is Kickstarter’s impact on career advancement within the creative workforce. Filmmakers, photographers, artists, authors, designers, musicians, and others reported that their project led to professional growth, greater earnings, and career advancement.
- 37% said that their Kickstarter project helped them advance their careers.
- 21% reported receiving an increase in annual earnings after running a successful project.
- 19% said they found a new job opportunity as a result of their Kickstarter project.
- 7% said their project helped them successfully switch careers.
Creators also reported meaningful professional gains within their fields:
- Filmmakers reported that Kickstarter helped them secure distribution deals.
- Musicians reported that Kickstarter helped them secure record or publishing deals.
- Video game creators reported that their Kickstarter project helped them secure a publisher or attention from reviewers.
- Authors and comic book creators reported that their Kickstarter project led to attention from mainstream publishers.
- Journalists reported that their Kickstarter project gave them freedom from the external control of editors and publishers, and helped them create work that served an underserved audience.
The National Crowdfunding Association of Canada (NCFA Canada) is a cross-Canada non-profit actively engaged with both social and investment crowdfunding stakeholders across the country. NCFA Canada provides education, research, leadership, support and networking opportunities to over 1300+ members and works closely with industry, government, academia, community and eco-system partners and affiliates to create a strong and vibrant crowdfunding industry in Canada. Learn more at www.ncfacanada.org.