Games studio investment risk ‘exaggerated’

Britain’s creative industries are carrying the stigma of being a risk to investors when they are in fact relatively safe, a new report claims.

Research group Demos claims it has qualitative data which shows that “contrary to expectation, the creative industries sector does not does not show notably higher failure rates”.

It claims that, according to its own data, the five-year survival rate for creative industry companies is 49.7 per cent, while the average for all business is 46.9 per cent.

A credit crisis that has engulfed the western economy has made credit lines exceedingly difficult for businesses.

Andy Payne, the chairman of games industry trade body UKIE, said games studios “are too often seen as a risky investment, and this Demos report will debunk some of those perceptions”.

“It will also raise awareness of the growth potential of interactive entertainment and the creative sector generally, as well as being a key driver to help improve access to finance for innovative games businesses in the UK,” he added.

The Demos report, set to launch today, also claimed that the creative industries contribute to about six per cent of GDP.