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Small Tourism Business Growth Through Eco-tourism in Mahikeng, South Africa
Abstract
Small business enterprises are renowned worldwide as vehicles for economic growth and development. The small business sector in South Africa has encountered numerous obstacles and government agencies responsible for their development have come across challenges, and as a result, they have not been able to adequately develop a large number of small businesses. Product diversification is one of the growth strategies that can be developed by small tourism businesses to break into new markets and off-set the challenges associated with one sub-sector of tourism. The primary objective is to determine the business support required by small tourism businesses to enter and participate in the eco-tourism sector. A non-probability judgemental sampling method was used to identify participants. In-depth face-to-face interviews were utilised to collect data from small tourism businesses located in Mahikeng, South Africa. There are many limitations that hinder the sustainable development and growth of small tourism businesses in Mahikeng, and for government to implement a series of growth reforms they firstly need to gather information on those factors that impede small tourism business’ sustainable development. The findings of the study can be utilised to inform policy-making processes, and its recommendations can contribute towards strategy development that provides assistance intended for small tourism businesses to enter and participate in the eco-tourism market.
... Consumer behavior in choosing a destination is similar to a product purchasing decision, where preference for environmentally friendly destinations is the main consideration. Tourist perceptions also influence visiting decisions, which are formed through cognitive processes using the five senses to understand the information received [26,27]. Positive perceptions of the concept of green tourism can encourage tourists' interest in visiting, although there is still a gap in understanding the concept of sustainability [28]. ...
... In the context of tourism, the concept of image is closely related to the theory of brand image. Litheko [27] defines image as the way consumers view a brand based on its functional qualities and psychological features. Altassan [28] adds that brand image is formed from associations stored in consumers' memories. ...
... According to Moeljadi, et al. [57] perception is a direct response through the five senses to understand something. This process includes selecting, organizing, and interpreting sensory information [27,35]. In the context of tourism, perception is a tourist's view of a destination Hashim, et al. [38] which influences visiting decisions and recommendations to others [39][40][41]. ...
This study examines the role of Green Marketing, Social Media, Destination Image, and Tourist Perception on Green Tourism and Sustainability in West Java. This study uses quantitative research methods. It was conducted in a natural tourism area where there are 355 natural attractions in West Java, which are divided into two types of environmental services: 205 forest areas and 150 places outside the forest area. The results of the analysis show that Green Marketing has no effect on Green Tourism and Sustainability due to low tourist awareness. On the other hand, Social Media and Destination Image contribute positively by increasing tourist awareness of sustainable tourism. Tourist Perception has no direct effect, indicating that understanding alone is not enough to encourage real action. Green Tourism contributes significantly to Sustainability through conservation, education, and resource management. This study emphasizes the importance of effective marketing strategies and the role of social media in encouraging tourists to behave more responsibly.
... Hence the role of small tourism businesses in the economic and social development of the country can easily be imagined (Chowdhury, 2020). The varying nature of small businesses suggests that they are likely to suffer severe losses in any crisis as they do not have enough knowledge about risk management (Litheko, 2021;Fuchs 2022). Small tourism businesses are not different from traditional small businesses (Copp and Ivy, 2001;Tinsley and Lynch, 2001;Litheko, 2021). ...
... The varying nature of small businesses suggests that they are likely to suffer severe losses in any crisis as they do not have enough knowledge about risk management (Litheko, 2021;Fuchs 2022). Small tourism businesses are not different from traditional small businesses (Copp and Ivy, 2001;Tinsley and Lynch, 2001;Litheko, 2021). As the service industry is prone to face the most awful scenarios of any crisis, small tourism businesses suffer great financial losses during crisis period (World Bank Group, 2020;Gössling et al., 2021). ...
... Hence their business revenue as well as profit and loss is small compared to large tourism business organizations. But when it comes to losses, it becomes an existential crisis for small tourism businesses (Litheko, 2021;Kim et al., 2021;Fuchs, 2022). During the COVID-19 pandemic, majority of small tourism businesses in Bangladesh had faced such a situation (Chowdhury, 2020). ...
Small tourism businesses are extremely affected by COVID-19 pandemic all over the world. The pandemic scenario in case of small tourism businesses in third-world country like Bangladesh was much critical. The study aims at evaluating factors responsible for financial loss of small tourism businesses due to COVID-19 pandemic in Bangladesh. To address the objective, Chi-square test, and logistic regression modeling have been applied to the quantitative primary data. This study finds that education of the owner/manager, type of organization, office location, year of establishment, main target customer and revenue earned before pandemic have significant relationship with financial loss during COVID-19. The results of the research would assist entrepreneurs and policy-makers in weighing different factors directly connected with the profit or loss in business and to formulate strategies for unpredicted crises.
... The ability of eco-tourism destinations to raise eco-tourism spending, attract more tourists while giving them satisfying, memorable experiences, and do so profitably while enhancing the well-being of destination residents and preserving the natural capital of the destinations for future generations is the systematic approach to the determinants of eco-tourism destinations' competitiveness (Michael et al. 2019). While ecotourism depends on respecting the area's carrying capacity limits, avoiding excessive resource use while still ensuring the presence of a significant number of visitors to ensure the economic viability of the services to be provided and generating social benefits related to employment, revenues, and social cohesion for the local communities (Litheko 2021;Gabriel-Campos et al. 2021). In consequence, loyal tourists are extremely important to ensure they repeat the visit or recommend the destination to friends, relatives, and family, as they do not demand publicity campaigns, and tend to be more sensitive to the values of the place (Aslanova 2019; Lee et al. 2021). ...
... Social innovation research has become more and more popular, while a variety of societal issues have presented difficulties for market actors as well as society at large. These worries include the severe disparities that are expanding across countries internationally, the challenges of adolescence and adulthood, and the disconnect between happiness and rising GDP and welfare and well-being contributions (Litheko 2021). To address these issues, the public, corporate, and nonprofit sectors must take action. ...
This chapter seeks to understand the challenge of social innovation in eco-tourism practices and value creation. Drawing from the concepts of social innovation, this chapter attempts to explore the nature of innovation in different social organizations. Although social innovation contributes to economic growth and continuous development, they are the area where the innovation source usually goes unnoticed. Social innovation about social matters has attracted all fields and sectors with numerous domains. Taken in this way, social innovation should be approached through a new lens, considering the current cultural and business system to be failing to meet social demands allowing the effort to reduce social gaps experienced in different ways. These gaps fill by the eco-tourism sectors in developing the local community economy and conservation of nature. The environmental issue should be considered in every aspect of development to achieve the sustainable goals of social entrepreneurship. Such social innovation represents changes that increase community trust while simultaneously creating value throughout certain areas portrayed as social practices or routines. Therefore, this chapter covers the topic of causing change, social innovation practices, rural development, and value creation.KeywordsSocial innovationEnvironmental issueSocial practicesRural developmentValue creation
... support of tourists and enhancing the company's eco-friendly reputation (Nikolaeva et al. 2018;Litheko 2021). While it is possible to save energy and save costs through government incentives, better management, institutional innovation, technical level, and other ways in the economic interests of this crucial aspect. ...
... The preservation of cultural and historical materials demands a tremendous amount of human labour; this is especially true now because it is essential to socioeconomic progress and, eventually, to sustainable development for human survival (Provalova et al. 2019). To the greatest extent possible, all parties involved in heritage conservation must cooperate with various social groups in order to protect natural and cultural resources (Litheko 2021). The industry actors and stakeholders involved in eco-tourism participate in a wide range of networks and cooperative projects. ...
This chapter attempts to understand the way of social entrepreneurship can fit into eco-tourism discourse. The impact of social entrepreneurship in eco-tourism has changed the local community economy and society. Different contexts of eco-tourism account for how they embrace these channels to society. The effectiveness of social entrepreneurship matters more for eco-tourism sectors when the sustainability and development of society are low. With limited opportunities in local communities, eco-tourism is becoming a viable option for a social solution. An understanding of this chapter guiding this study focuses on the concept of eco-tourism, in terms of local community development (income generation and wellbeing) and the environment. Social and environmental are major types of social entrepreneurship in eco-tourism that deal with social complexities and contribute to job creation and economic growth. The foremost purpose of this chapter is to appraise a strategy for eco-tourism development as a platform for the sustainable local community, at the same time promoting environmental sustainability. This chapter mainly considers current opportunities for social entrepreneurship practices in eco-tourism, where tourism is one of the fastest expanding sectors, which has been leaving positive impacts on sustainable development.KeywordsEco-tourismEnvironmentalSustainabilityLocal community
... org/0000-0003-1176-1641 b of economic growth and development, they create jobs, reduce unemployment and poverty, especially youth unemployment, and they can stimulate innovations and contribute to growth domestic product (GDP). These contributions of SMMEs have been recognised globally in all economies, including that of South Africa (Litheko, 2021;Ouma-Mugabe et al., 2021;Soogun & Mhlongo, 2021). ...
Small, medium, and micro enterprises (SMMEs) are major contributors to economicgrowth and development. While SMMEs play a crucial role in driving economic growth in advanced economies, they have a high failure rate in South Africa, especially during the start-up and growth phases. This study investigates the role of government support in the development and growth of SMMEs in South Africa. Its results indicate that despite government support schemes and initiatives, the failure rate of SMMEs remains high. The main challenges faced by the SMME sector include the large number of regulations, which limit the scope of operation and can pose a threat to survival. The main conclusions point to the information deficit and needs analysis that would tailor-make and accommodate the specific requirements of different enterprises.
... The findings of Sanrobengi Island emphasize the lack of promotion and facilities as obstacles, while Fatumnasi identifies threats from low community concern for the environment. Although different, these two studies complement each other in providing strategic insights for sustainable tourism development [31], [32]. ...
Purpose of the study: The purpose of this study is to identify factors that influence the development of Sanrobengi Island Tourism Object, Takalar Regency. And to find out the strategy for developing the potential of Sanrobengi Island Tourism Object, Takalar Regency. Methodology: The analysis method used is chi-square, then a contingency test is used in drawing conclusions which is continued with a Likert Scale scoring system as a parameter to determine the magnitude of the relationship between variable X and Y. Furthermore, a strategy is developed to develop the potential of Sanrobengi Island tourism objects using the SWOT analysis method. The variables used consist of 5 (five) variables including: (1) Tourist Attractions; (2) Supporting Facilities; (3) Security and Comfort; (4) Information and Promotion; (5) Accessibility. Main Findings: Based on the results of the Chi-Square test, factors that significantly influence the development of the Potential of Sanrobengi Island Tourism Objects were obtained. There are three variables that have an influence on the strategy for developing the potential of Sanrobengi Island tourism objects in Takalar Regency, namely tourist attractions, Tourism Support Facilities, and Accessibility. While there are two variables that do not have an influence, namely Security and Comfort and Information and Promotion. Novelty/Originality of this study: This study integrates RTRW and RIPPARNAS policies to support sustainable tourism in South Sulawesi. Through the Chi-Square test, the study evaluates the attractiveness, facilities, security, promotion, and accessibility, and formulates evidence-based strategies to strengthen marine tourism as a leading destination.
... It is reasonable to expect this, as MSMEs https://doi.org/10.24912/jmieb.v8i1.27771 have a significant and influential impact on a nation's economic structure (Gill et al., 2012;Islam et al., 2020;Litheko, 2021;Joensuu-Salo et al., 2023;D.P. Tran et al., 2023). The Ministry of Cooperatives and SMEs disclosed that Indonesian MSMEs accounted for 60.5 percent of the country's gross domestic product (GDP). ...
Usaha mikro, kecil, dan menengah (UMKM) memainkan peran penting dan substansial dalam lanskap perekonomian suatu negara. Dalam konteks Indonesia, UMKM menyumbang 60,5 persen terhadap produk domestik bruto (PDB) nasional. Para peneliti telah melakukan banyak sekali kajian terhadap UMKM, khususnya dengan fokus pada kinerja bisnis UMKM. Namun demikian, masih sedikit penelitian mengenai kinerja bisnis UMKM yang berada di kawasan pariwisata yang memiliki posisi unik di sektor pariwisata. Daya tarik suatu destinasi pariwisata memerlukan kehadiran UMKM untuk mendukung terciptanya pengalaman berkesan bagi wisatawan melalui fasilitas, akses, dan atraksi. Di sisi lain, pasar UMKM mengandalkan strategi pemasaran destinasi yang berpotensi meningkatkan kunjungan wisatawan. Tujuan utama dari penelitian ini adalah untuk mengatasi kesenjangan penelitian dengan melakukan analisis model yang mengeksplorasi pengaruh online presence dan kualitas layanan terhadap kinerja bisnis UMKM di kawasan pariwisata. Kami mengumpulkan data primer dengan menyebarkan kuesioner melalui platform google forms. Kami menggunakan stratified random sampling sebagai teknik pengambilan sampel dalam penelitian ini. Data yang dikumpulkan dari sampel 192 pemilik UMKM di Pulau Lombok menggunakan model persamaan struktural. Analisis ini kami lakukan dengan menggunakan SmartPLS 3. Hasil penelitian menunjukkan bahwa online presence dan kualitas layanan berpengaruh positif dan signifikan terhadap kinerja bisnis UMKM pariwisata di Pulau Lombok. Micro, small, and medium enterprises (MSMEs) play a significant and substantial part in the economic landscape of nations. In the context of Indonesia, MSMEs contributed 60.5 percent of the nation's gross domestic product (GDP). Researchers have conducted extensive studies on MSMEs, specifically focusing on MSMEs’ business performance. Nevertheless, there is a paucity of studies regarding the business performance of MSMEs situated in tourism regions, which have a unique position in the tourism sector. The attractiveness of a tourism destination requires the presence of MSMEs to support the creation of memorable experiences for tourists through amenities, access, and attractions. On the other hand, the MSMEs’ market relies on destination marketing strategies, which have the potential to enhance tourist arrivals. The primary aim of this study is to address a research gap by conducting an analysis of a model that explores the impact of online presence and service quality on the business performance of MSMEs in the tourism region. We collected primary data by administering a questionnaire through the Google Forms platform. We utilized stratified random sampling as the sample technique in this investigation. We analyzed the data collected from a sample of 192 owners of MSMEs on Lombok Island using structural equation modeling. We conducted this analysis using SmartPLS 3 software. The study's results suggest that online presence and service quality have a positive and significant effect on the business performance of tourism MSMEs on Lombok Island.
... His research concluded that Local communities had garnered enormous benefits from the backing of local tourist enterprises.In addition, community members have progressed in their places of work from the training and community empowerment to start their ecotourism business or further progress in any area of their choice. Besides,Litheko (2021), in recent research, Small Tourism Business Growth through Ecotourism in Mahikeng, South Africa, suggested that farmers will need to diversify with their existing products for small-scale tourism to thrive in the sector. He further explained that the government should explore limiting factors around small-scale tourism. ...
Rwanda's ecotourism business is one of the fastest-growing sectors of the economy, with much room for expansion in the future. Ecotourism activities have been concentrated in some specific areas, especially in its national parks, following the number of yearly visitors in this region. However, no evident effect is noticed on the people intended to be its initial beneficiaries, such as small-scale business owners and farmers in Kibagabaga.
... Shifting demeanors towards and mindfulness of maintainability and preservation of nation social and normal resources restrain sum of community meeting in arranging and advancement of these endeavors (Brown et al., 2021). Policy-making shapes and its recommendations can contribute towards procedure headway that gives offer assistance pointing for small tourism businesses to enter and take portion in eco-tourism exhibit (Litheko, 2021). ...
... claimed that the intensification of globalisation has generated a profound impact on international partnerships, forcing companies to become multicultural (Kyove et al., 2021;Litheko, 2021). As an example, United Nations Conference on Trade and Development (UNCTAD, 2016) calculated the number of international tourist arrivals has doubled over the past 20 years, boosting demand for foreign labour to 5.5% in establishing economies and 2.6% in developed countries. ...
The following research examines the acculturation processes of migrants, working in Switzerland, particularly in the hospitality industry. Due to rapid globalisation and lack of investigation on worker’s adaptation, there remains a gap in the research based on the employees’ cultural clash occurrence. The study explores potential tools which might simplify cultural adaptation and provide a better understanding of international communication for any future employees coming to live and work in Switzerland. Semi-structured interviews with participants from different nationalities were conducted to identify the importance of effective acculturation, the adaptation issues, and the influence of those on work and life in Switzerland. The results demonstrate that the most efficient way to acculturate in Switzerland is integration to the culture and traditions of the country and its history through understanding their values, norms, practices. Moreover, Switzerland was viewed as a very conservative and strict country where one must work hard to be accepted. Those participants who tried to separate, assimilate, or marginalise tend to experience tougher acculturation. Language, namely Swiss German or German, was highlighted as the most essential to learn or to be provided by the workplace. Lastly, current research identified a link between successful acculturation with job opportunities and development. Since salaries and job opportunities are not the same for the foreign workers in comparison to Swiss employees on the same position there might be a potential recommendation for improvement. Little to no link has been found between acculturation and psychological well-being, financial status, and health conditions.
... The contributions of SMMEs to the creation of jobs and to the alleviation of poverty has been recognised globally in all economies. In South Africa, the SMME sector is considered an immediate priority towards economic assistance and job creation (Litheko, 2021;Ouma-Mugabe, Chan & Marais, 2021;Soogun & Mhlongo, 2021). ...
South Africa has a rich and powerful history when it comes to overcoming challenges. One of the major challenges which was overcome was the abolishment of apartheid which, among others, led to the transformation of the public sector to include a service to all. The much-needed transformation included a local municipal structure, as well as how to effectively deal with waste. In the past few decades there has been a steady march towards addressing global warming, pollution and other negative effects on the environment (GreenCape Report, 2020). The importance of dealing with waste management in an effective and efficient manner has become more pressing. We tend to look at the problem of pollution and environmental degradation, and the negative impact it has on society, more holistically (PETCO, 2022). This paper will focus on the waste managers within the public sector and introduce the concept of intrapreneurship and explore the possible effects it could have on municipal waste managers. It will also bring the much-needed background information of how waste management fits into the concepts of global warming. The paper brings clarity on the role of the waste managers within the municipal structures, the laws and regulations that need to considered and the management of various logistical issues that make up the duties of a municipal waste manager. Within this paper we will explore intrapreneurship within the waste management sector and highlight to what extent intrapreneurial freedom is allowed.
... The contributions of SMMEs to the creation of jobs and to the alleviation of poverty has been recognised globally in all economies. In South Africa, the SMME sector is considered an immediate priority towards economic assistance and job creation (Litheko, 2021;Ouma-Mugabe, Chan & Marais, 2021;Soogun & Mhlongo, 2021). ...
Small, Medium, and Micro Enterprises (SMMEs) possess attributes akin to entrepreneurship that make them indispensable tools for economic growth and development. While SMMEs have a direct impact on economic growth in advanced economies, these enterprises have a high failure rate due to a variety of reasons, especially during the start-up and growth phases. Government support schemes have been availed to SMMEs to assist them to survive the vulnerable phases of their existence. This study investigates the role of government support services towards the development and growth of SMMEs in South Africa. The quantitative research design used the survey method to collect data from a sample of one hundred (100) SMMEs in Thohoyandou, South Africa. The Statistical Package for Social Sciences (SPSS) was used to analyse the data, and presentation used descriptive analysis. The main study revealed that despite the government support schemes and initiatives, the failure rate of SMMEs remains high. The major factors affecting the uptake of government support schemes and initiatives included the lack of information and access to the financial assistance offered to most SMMEs through the government schemes. Despite the support schemes and initiatives, further challenges include the proliferating myriad of rules and regulations in the regulatory environment curtailing the operations and survival of SMMEs. Study findings indicated that despite the existence of the growth and development-oriented government support schemes, most SMMEs are unaware of their existence while other enterprises find them ineffective. The main conclusions point to the information deficit and needs analysis that would tailor-make and accommodate the specific requirements of different enterprises.
... Marumo et al. (2015) state that tourism development in Mahikeng is challenged due to a lack of supplementary facilities such as accommodation. Litheko (2021) adds that tourism development in this province cannot take place without the help of provincial government and the local municipality. However, there is little evidence to date that tourism product suppliers are getting sufficient assistance from government departments. ...
This research aimed to identify urban tourism development challenges in Mahikeng. Using a quantitative research method, a self-administered questionnaire was developed and distributed online. A database consisting of active tourism product suppliers in Mahikeng, obtained from the Department of Economic Development, Environment, Conservation and Tourism (DEDECT) was used. Fifty-two completed questionnaires were returned out of 60. To reach the aim of this study, descriptive statistics and an exploratory factor analysis (EFA) were done, which yielded four factors: provincial-level management challenges, national-level management challenges, municipal-level management challenges, and private sector management challenges. There is a lack of coordination and planning among different departments of government, while the private sector is heavily relying on government support. Through these results, tourism product suppliers in Mahikeng can strive towards self-motivation and form tourism associations. Government can revisit their tourism strategic management objectives to overcome the identified challenges and, in turn, ensure sustainable urban tourism development in Mahikeng.
... Township tourism has been the focus of several investigations on the challenges facing the evolutionary development of small firms and their role in poverty alleviation (Koens & Thomas, 2015, 2016Hlanyane & Acheampong, 2017). Other studies have looked variously at the role of small firms in niche forms of tourism accommodation services (Visser & Van Huyssteen, 1997, 1999Nuntsu, Tassiopoulos & Haydam, 2004;Kwaramba, Lovett, Louw & Chipumuro, 2012), business linkages (Kirsten & Rogerson, 2002), sustainable development (Litheko, 2021), local economic development (Booyens & Visser, 2010), and questions of business support for tourism small firms (Rogerson, 2004a(Rogerson, , 2017. Recent studies have demonstrated that the COVID-19 pandemic exposes the precarity of the operators of tourism small firms and often their lack of resilience to respond to it through measures for business adaptation (Booyens, Rogerson, Rogerson & Baum, 2022). ...
In the international scholarship about tourism small firms the most distinguishing feature of South Africa relates to transformation debates. This article represents a contribution to the vibrant literature around small tourism firms and change in the global South by analysing the geographies of transformation in one South African province, the Eastern Cape. An historical approach is applied to understand the spatial patterns of transformation as mapped in patterns of ownership of Black small-scale accommodation enterprises. The historical approach shows that different regulatory regimes regarding Black entrepreneurs and their involvement in South African tourism have existed at different times and especially under the influence of apartheid legislation and following democratic change. The formative period of Eastern Cape tourism during the first half of the 20th century witnessed the
establishment of a tourism economy dominated by White entrepreneurs and most especially in the coastal areas. The apartheid period, however, allowed a small window of opportunity for Black entrepreneurs to establish
tourism businesses in the former ‘reserves’ which would become the Homelands. It is shown that the former Homelands areas are currently the most advanced transformation spaces. This finding reinforces the view that
whilst with the end of apartheid the Homelands formally ceased to exist their legacy remains inscribed on the character and geographical patterns of tourism small firm development in South Africa.
Micro and small enterprises (MSEs) play a crucial role in the tourism industry, yet they have faced numerous challenges. This systematic review examines challenges faced by MSEs in the tourism industry, utilizing a PRISMA-method analysis of 82 Scopus database articles. Four interconnected themes emerge: lack of funding, lack of training, lack of education and awareness, and lack of skills. Funding emerges as the root cause of these challenges. The study underscores the need for policymakers to address the intertwined issues of funding, skills, training, education, and awareness hindering MSEs. Despite the recognition of these challenges in existing literature, few studies propose solutions for sustainable development. This research provides valuable insights for policymakers, bridging a gap in understanding the issues faced by MSEs. The proposed solutions aim to create a win-win situation for all stakeholders and the destination in this era of constant change brought on by COVID-19 and other crises.
This study investigated physical infrastructural aspects as determinants of tourism development in Mahikeng, the provincial capital city of the North West Province. Using existing literature, physical infrastructural aspects necessary for tourism development in a city were identified. Through the creation and testing of hypotheses, insight into each identified physical infrastructural aspect in relation to tourism development in Mahikeng is presented. A total population sampling technique was used, and 62 of the 70 tourism businesses in Mahikeng responded to an online survey. The data was analysed, using SPSS, and descriptive results and a structural equation model (SEM) were developed. From the SEM model, the results indicated that fibre internet infrastructure is the biggest determinant of tourism development in Mahikeng. This was followed by basic service infrastructure, transport infrastructure and supporting infrastructure. As this study is the first to be done in Mahikeng, the results highly contribute to provincial and municipal governments attempt to initiate new development projects aiding in tourism development in this city.
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