Financial-economic analysis of cultural companies in small and medium-sized cities in Spain

Cultural enterprises are today an important component in the development processes of many territories. In urban centers—particularly those located within metropolitan areas—cultural companies constitute a main element of the economy, due to their ability to activate new production chains and revitalize local regions. The objective of this work is to examine the traditional cultural sector (subsectors 18, 59, 60, 90 and 91 of NACE-09) of small and medium-sized cities from the perspective of the financial conditions of the particular companies involved. The use of multivariate techniques for reducing dimensions enables the specification of key factors within the financial structures of companies to assemble homogeneous groups of firms, in order to then determine which factors influence their profitability in both intra- and extra-metropolitan contexts. The results of the applied method indicate heterogeneity in the financial situations of these cultural industries in the activities and cities analyzed. Differences are marked in the financial profiles of cultural companies in intra-metropolitan environments in terms of business profitability, debt quality, financial stability, investment capacity, and costs of personnel. On the other hand, the economic-financial structures of companies in extra-metropolitan cities are determined through efficiency in the allocation of economicfinancial resources, profit margins, and investment capacity. Belonging to one cultural sub-sector or another and a particular location within an intra- or extra-metropolitan urban environment also play some part in a company’s economic and financial structure. Hence there is a need to differentiate the design of intervention strategies (instruments) aimed at promoting the system/environment to which the company belongs as well as the company itselfThis research forms part of a competitive project “Culture and Territory in Spain. Processes and impacts in small and medium-sized cities” (Ref CSO2017-83603-C2-2-R), financed by the State Research Program “Development and Innovation Oriented to the Challenges of Society” of the Spanish Ministry of Economy and Competitiveness, within the framework of the State Plan for Scientific and Technical Research and Innovation, 2013–2016. The project was developed by the Research Group in Urban Studies and Tourism (URByTUR) of the Department of Geography of the Autonomous University of Madrid (UAM