BANCOLDEX AND THE ORANGE ECONOMY

Bancoldex, as the business development bank of Colombia, established the goal to promote the creative economy as a way to boost de economic development of the country. To achieve this, a long term strategy has being stablished offering financial and no financial services (including debt, investment and technical assistance among others).

What is the Orange Economy?
How does Bancóldex?
How are creative and cultural industries classified?
Results and reports

What is the Orange Economy?

It is a tool for cultural, social and economic development. It differs from other economies because it is based on the creation, production and distribution of goods and services, whose cultural and creative content may be protected by intellectual property rights.

What are the activities included in the Orange Economy?

Orange Economy activities are divided into three groups and are classified by economic activity. A total of 103 economic activities (ISIC codes) are part of this sector. Click here to see all activities..

1. Art and Heritage

Visual arts

Performance - Video art - Photography - Sculpture - Painting

Performing arts

Theater - Dance - Orchestras - Circus - Opera - Concerts

Tourism and cultural heritage

Archaeological sites - Historical centers - Festivals - Carnivals - Archives - Libraries - Natural parks - Crafts - Gastronomy - Museums

Education

2. Cultural Industries

Publishing

Bookstores - Books - Newspapers - Magazines - Literature

Audiovisual

Radio - Video Television - Film

Phonography

Recorded Music

3. Functional Creations

Digital media

Animation - APP and software development - Digital platforms - Interactive content - Video games;

Design

Furniture - Fashion - Architecture - Industry - Toys, Jewelry - Graphic arts - Illustration - Interiors.

Advertising

Why is the Orange Economy one of Colombia’s commitments?

According to DANE’s Culture Satellite Account* data, the added value of cultural activities in Colombia reached 8.4 trillion pesos in 2016 and its average annual growth has been 5.2% since 2005. About 240 thousand jobs were generated between 2015 and 2017, not including activities related to functional creations.

* Which only includes: performing arts, visual arts, audiovisual, creation, advertising design, cultural education, games, toys, books, publications and music.

What does the Government do to boost the Orange Economy?

The National Government seeks to establish an institutional agreement within "Pact for Colombia, Pact for Equity" 2018-2022 National Development Plan (PND) so that entities consider including an emphasis on creative and cultural industries within their strategic programs in order to transform this sector into a driver of development, productivity and economic growth. The PND set a 5.1% growth goal in the added value of the Orange Economy sectors for 2022*.*.

The strategy aims at addressing the seven “i”, the action lines where institutions shall work decisively:

Financing actions are also established within the PND, which are carried out by institutions such as Bancóldex to provide resources for Orange Economy companies to have credit resources for their growth and expansion.

* Added value measures creativity and is obtained by subtracting the cost of raw materials from the cultural good or service. The 2018 indicator – which was at 2.9% – was taken as the baseline. Basis for the 2018-2022National Development Plan (PND).

How does Bancoldex favor the Orange Economy?

Bancoldex promotes the creative economy to boost the country's economic development within the framework of its corporate strategy. Therefore, the bank has designed a long-term workplan that focuses on the following aspects:

BANCOLDEX FINANCIAL PARTNERS

Special Lines

Traditional lines

BANCOLDEX DIRECT

What offers are there per stage of a company?

How are creative and cultural industries classified?

1. Community and non-profit organizations

These organizations implement community-based and local impact projects. They are linked to arts and heritage and they generally need to strengthen their technical and financial capacities.

2. Emerging entrepreneurs

Emerging entrepreneurs stand out because they are those who innovate and take risks in the content they create and take to the market. They work on a project-by-project basis and their sources of income are unstable. Emerging entrepreneurs require seed capital to develop their markets and consolidate their businesses.

3. Consolidated entrepreneurs

These industries have functional business lines and have achieved income stability. They usually require financing for expansion and scaling up, and seek to increase their productivity, become more efficient and competitive.

4. Large Companies

This segment includes companies with experience in the market and with financial strength. They have the potential to be investment anchors and become exporters. These companies are looking forward to stable regulatory frameworks, infrastructure improvement and investment incentives.

What are ISIC codes? Which of them are for the Orange Economy?

Economic activities are classified under the ISIC codes (International Standard Industrial Classification) according to their productive processes. Particularly, DANE (National Administrative Statistics Department) defined 103 orange activities (total and partial inclusion activities) for the creative and cultural industries (orange economy).