Entrepreneurship by the Public Sector in the Field of Culture and Destination Management – A Case Study from Jihlava in Czechia

The article demonstrates a public sector approach to business in culture and tourism. It reveals the pursuit of different goals in the private and public sectors and the approach to elaborating development strategies. Using a case study from Jihlava in Czechia, we show through content-causal analysis that the public sector does not pursue profit as its leading economic goal when doing business. The paper compares the research results using the focus group method (n=4+1) to determine the business plan of a cultural object from 2022 with the actual situation in 2024 (interview, n=3+1). Despite the deteriorated economic results, running a loss-making business does not represent a significant problem for the public sector if at least the operating cash flow develops positively. The business plan was prepared in three variants, both in 2022 and 2024, representing a unique research approach. The realistic variant, the basis for the demonstration of public sector management in the form of cash flow calculation, means a profitable activity in a cultural object in the form of an attractive exhibition. The other two variants are pessimistic (without an exhibition with admission) and optimistic when the exhibition is beautiful and widely visited, thanks to its involvement in the destination's tourism product. A comparative analysis of two business plans prepared in three variants two years apart confirmed that significant tourist attractiveness generating income is necessary for sustainable operation in a building oriented towards cultural and social activities. These, in multiplication, substantially improve the management of the entire object, even though it may be permanently unprofitable. At the same time, the article confirms the contribution of destination management organizations and tourism products to making the tourism destination more attractive.