Are Less Public Funds Bad? New Strategies for Art providers

Public budget constraints reduce the public funding available to art providers (AP). This 'bad news' is likely to impose radical changes in their strategies and it may as well give them a chance to re-think their mission in line with the new set of incentives they face. AP might try to exploit new market opportunities, enlarge the scope of their production and incorporate other nonmarket- oriented objectives. Strategies range from an additional supply of a specific type of art product (live artistic performances, visual arts exhibitions, etc.) to the supply of a larger variety of products and services, including educational activities for social inclusion. They can also benefit from making their business more profitable, and generate positive externalities that can be appreciated by a larger part of the local community and favour social cohesion.