An artist is just as likely to be wearing a sharp business suit asa stained smock, writes Colm Ward

In Ireland, we like our artists a bit mad. We like to think of them as being unconcerned with the material things in life and dedicated solely to their art.

The reality, however, is very different. Now, an artist is just as likely to be wearing a sharp business suit as a stained smock.

Art has become big business and its practitioners need to be just as tough and ruthless as their counterparts in the corporate world.

Art and commerce have always gone hand in hand. Just as in the past, artists were often dependent on wealthy patrons for their survival, modern artistic organisations are fully aware of the value of their corporate "partners".

The first Dublin International Film Festival, which begins next month, is a new venture aimed at bringing a selection of Irish and international movies to Dublin. With a total budget of €400,000, this event is a major financial undertaking. Of that, less than 10 per cent - €30,000 - comes from public funds.

The remainder has to be raised through other means, including sponsorship, ticket sales and advertising in its programmes. Mr Rory Concannon, chief executive of the festival, believes that artistic events like this cannot expect to continue unless they are viable. "I don't think events that are loss-making should be encouraged," he says.

Ultimately, "the exact same rules apply" to an artistic event as they do to any other business and it is the responsibility of the management to ensure that there is enough money available to meet payroll and other costs.

But he believes that arts administrators have become more professional and that there is now a greater awareness that they can no longer approach potential sponsors with begging bowl in hand. Instead sponsors have to feel that they are getting something in return for their investment. "What you have to do is present an iron-clad case that the money is well spent and that it equals a good deal for them."

If arts organisations are changing their attitude towards sponsorship then so too are many businesses. There is a move away from the attitude that their contribution ends with the donation of money, says Ms Brigid Roden, chief executive of Business2Arts, an organisation dedicated to forging stronger links between the worlds of business and the arts. The message that her organisation is sending to businesses is that they can gain a great deal through active partnerships with arts events and organisations.

For example, "if you are sponsoring the opera, you are also benefiting from that image of excellence", she says.

There are many ways in which businesses can benefit from association with the arts. For example, they might invite artists to perform in the workplace or even to get involved in training their staff in areas such as creative thinking. Similarly, artists can learn a great deal from exposure to the working of business organisations.

Business2Arts has introduced a number of initiatives to encourage this type of interaction, such as its INFORM programme under which member companies provide places for arts managers on business-related courses in areas like personnel management and strategic planning.

Ms Roden describes as a "myth" the notion that arts and business people speak different languages. An arts administrator is often performing the same tasks as any other business manager, she says.

Of course there is one crucial difference between the arts and other businesses and that is that artists are expected to be constantly pushing new boundaries. Rather than just creating work they know will be popular with a mass audience, they have to challenge their audience and, in so doing, take the risk of the show being unpopular.

Striking this balance between popularity and innovation is something that is of particular concern for arts managers. For regional arts centres especially, it is important to have a mix of performances that appeal to a variety of different audiences.

Deciding on this mix is something that is done "with great difficulty", according to Ms Patricia McBride, director of An Grianán Theatre in Letterkenny, Co Donegal. An Grianán staged 279 performances last year, ranging from drama and music to film and dance. With turnover of about €1 million and six full-time staff in addition to 15 part-time, it is a significant management challenge by any standard and a good business head is a must.

One of the big difficulties facing the arts community, according to Ms McBride, is the inability to retain and develop expertise. Many small arts groups rely on one or two people to handle all the administrative work but often those people drift away into other jobs because the opportunities for career development do not exist in the arts sector. "There has to be more awareness at a government level of the value of the sector," she says.

"Artists need to be more respected and they need to be able to look forward to a career path development where they are not living hand to mouth." In the last Budget, funding for the Arts Council was reduced by almost €4 million - to €44 million - for 2003. This cut will mean that it will be "a bleak year" in which groups will have to seek alternative sources of income, she believes.

Sponsorship is one option but, for many regional centres, it can be difficult to raise significant amounts. The alternative is to look for other ways to make venues pay by, for example, putting on cabaret-type shows that will attract large audiences.

Most likely to be affected by funding cuts are the smaller and more exploratory groups whose work may not necessarily appeal to a large audience. One such group is Sligo's Blue Raincoat, a theatre company that produces between two and five plays every year and is also heavily involved in training and education in the theatre. It receives the bulk of its funding from the Arts Council and will suffer a 15 per cent reduction this year, according to Ms Tara McGowan, company manager.

However, the company, which has been in operation since 1991, has built up a reputation for exploratory and adventurous work and because of this has a solid support base in the local community. "We don't have any major problems in attracting audiences," she says.

As to whether the cuts will affect their work, she remains optimistic. While raising finance will undoubtedly be more challenging and commercial sponsorship will become a more important element, "I don't see that it will have a very negative impact", she says.

The Dublin International Film Festival will be held from March 6th to March 13th, 2003.