Michael Kiwanuka admits that performing live is a costly venture.
Michael Kiwanuka's finances have taken a hit as a result of his live gigs this summer
The 37-year-old singer has played a number of outdoor gigs this summer but admits that the expense of performing live has taken a financial toll.
Michael told Music Week magazine: "I just finished festival season and I could feel the hole it made in my pocket.
"For artists that make music that has a human touch to it, you need to tour to connect with people.
"That's something you can't replicate, something where you can create a synergy and a fan for life, and on top of that, you can pay back the fans that are streaming, listening and spreading your music to people."
A survey found that 72 per cent of artists reported no profit from their recent tours and Michael is fearful that the economic uncertainty will prevent future talent from being successful in the industry.
The 'Cold Little Heart' artist said: "If it gets too pricey, you can't do that. I worry that the quality of artists we produce may diminish because they don't learn the grassroots, what it is to play and connect with your audience."
Michael is set to release his fourth studio album 'Small Changes' in November and is hoping to help future stars by revisiting his own Movement Records label – a short-lived idea that he launched in 2013.
He said: "We didn't really get it fully off the ground as much as we would have liked.
"I sort of wish I did that later, maybe after (his third LP) 'Kiwanuka' or around that time.
"Having my own label or own outfit someday would be really nice, especially as I get older and younger artists are coming through.
"(A label) could be one way to stay connected to each generation, to offer a place for young songwriters, artists that are doing their own thing, carving their own lanes, to have a place to start."