scholarly journals Risk factors for failure in newly established small, micro and medium-sized enterprises in the tourism sector of Gauteng Province, South Africa

2015 ◽  
Vol 5 (4) ◽  
pp. 8-18
Author(s):  
Zeleke Worku

The annual report issued for the financial year 2013/2014 by the South African Chamber of Commerce and Industry (2015) shows that the business confidence index of South Africa was equal to 89.3% in January 2015. According to the South African National Department of Tourism (2015), the tourism sector contributed 93 Billion Rand (3%) to the South African GDP in the year 2012. The contribution of the tourism sector was equal to 189.4 Billion Rand in the year 2009. This figure is projected to grow to 499 Billion Rand by the year 2020. According to the South African Small Enterprise Development Agency (2015), newly established and emerging business enterprises conducting business in the tourism sector of Gauteng Province are less viable and efficient in comparison with well-established tourism enterprises. The objective of this study was to identify and quantify risk factors for underperformance and bankruptcy in the tourism sector of Gauteng Province in South Africa. The study was based on data collected from a stratified random sample of size 311 tourism enterprises that operate in Gauteng Province, South Africa. Data was collected on a large number of socio-economic factors that adversely affect entrepreneurial activities in the tourism sector of Gauteng Province. A combination of quantitative and qualitative methods of data collection and analyses was used in the study. Examples of variables on which data was gathered was level of entrepreneurial skills, level of formal education, location of business, duration of experience, amount of capital, number of employees, ability to network with other tourist operators, degree of competition from rival operators, geographical location, category of business, category of entrepreneurial skills, average number of visitors per month, net profit, size of business, market share, access to finance, and degree of support from Government agencies. Results obtained from the study showed that the long-term survival and viability of African entrepreneurs in the tourism industry of Gauteng Province was significantly and adversely affected by the degree of competition from rival operators, poor networking ability, lack of entrepreneurial skills, low capital, and geographical location. The study found that African entrepreneurs in the tourism industry of Gauteng Province lagged behind their white counterparts significantly in terms of networking ability, capital and entrepreneurial skills. In addition, 82% of the 311 African entrepreneurs who participated in the study lacked suitable skills due to their poor and irrelevant academic and vocational background, and that 59% of entrepreneurs had received little or no assistance in terms of mentoring or training opportunities from South African Government agencies.

2016 ◽  
Vol 14 (1) ◽  
pp. 201-205
Author(s):  
Nsizwazikhona Simon Chili ◽  
Simiso Lindokuhle Mabaso

Township tourism in South Africa has grown in popularity since 1994 and is considered by some researchers to be an appropriate mechanism for stimulating local economic development. Opportunities for the development of black-owned enterprises in South Africa began for the first time when the country integrated into the global tourism economy after many years of international sanctions. The growth of township tourism thus can provide the context for potential economic opportunities for local entrepreneurs to enter the business, an activity that traditionally has been the domain of established white South African entrepreneurs. The main objective of the study is to present findings on the challenges that face a certain group of small tourism enterprises in townships with more attention being specifically paid to Umlazi as the second biggest township in the Southern hemisphere. The main reason for the choice of the study is due to the fact that there is only a limited literature that explores the conditions of small-scale and informal tourism entrepreneurs operating in South Africa’s black townships. The focus falls upon the challenges of developing small tourism entrepreneurs for black owners in the township, especially because South African tourism industry is highly concentrated and dominated by small elite group of large, mostly locally owned, tourism organizations which drive the tourism economy that unfortunately excludes and sidelines that of the townships


2016 ◽  
Vol 13 (3) ◽  
pp. 445-455 ◽  
Author(s):  
Elizabeth Chinomona ◽  
Chengedzai Mafini ◽  
Chriss Narick Mangoukou Ngouapegne

Introduction of the mass rapid transit railway system through the Gautrain has not only addressed the transport issue in South Africa but has also motivated and promoted the country’s economic growth by creating employment. Despite the increase in research focusing on the importance of the Gautrain to the South African economy, the influence of perceived convenience, image and safety on commuter satisfaction and loyalty in the South African mass rapid transit railway system context is still limited. This paper used a data collected from 206 Gautrain commuters in the Gauteng province of South Africa to examine the interplay between perceived convenience, image, safety, commuter satisfaction and loyalty. Smart PLS software technique was used to statistically analyse the measurement and structural models. The results revealed that perceived convenience, image and safety positively influenced commuter satisfaction, which, in turn, influenced commuter loyalty. These results may be used by marketers in mass public railway systems to initiate strategies intended to increase both commuter satisfaction and loyalty


1995 ◽  
Vol 1 (1) ◽  
pp. 17-31 ◽  
Author(s):  
Jonathan Z. Bloom ◽  
Frederik J. Mostert

The need for some form of support from governmental sources to advance the tourism industry by means of financial and fiscal incentives has become a significant issue. This article provides a comparison of incentives found internationally with those available in South Africa. Various shortcomings pertaining to the types of incentives provided are discussed. The main aim of the paper is to analyse three incentive options in the context of tourism policy together with a decision matrix which could be used by the government to make a choice between alternative options. A conceptual framework is provided which could form the basis for the government in its choice of incentives. The implications and challenges of providing incentives for the tourism industry are discussed in the context of developing socio-political trends within the South African environment


1997 ◽  
Vol 31 (3) ◽  
pp. 628-654 ◽  
Author(s):  
Wiseman Chijere Chirwa

This article is about the process of socioeconomic transformation in rural Malawi. It examines the survival strategies and enterprising spirit of Malawian migrant workers and their households. It argues that the strategies of these people often went beyond survival in the provision of basic necessities. Those who had the economic drive and entrepreneurial skills were able to use the proceeds of labor migration to improve their own and their households’ socioeconomic life. In March 1988, the South African Chamber of Mines stopped a century-old tradition of recruiting migrant workers from Malawi. This has arrested and put to a halt a process of accumulation taking place in the households of the returned migrant workers in the rural economy. Thus, the effects of the retrenchment of the workers will spread from the migrant and his family through the economic and social wellspring of all sectors of rural communities and their commercial lives.


Author(s):  
Joël Houdet ◽  
Michelle Browne ◽  
Fonda Lewis

There is growing concern that ongoing degradation of natural capital, due to various global and local drivers of change, will compromise the delivery of the ecosystem services on which the tourism industry relies. This chapter aims to explore the relationships between natural capital and tourism. The chapter first provides an introduction to the inter-dependencies between business and natural capital and presents an overview of the tourism sector in South Africa. The focus then shifts to conceptualizing the links between tourism and natural capital, focusing on inland freshwater systems. A conceptual framework of the interactions between natural capital and the tourism sector is presented and key links between hydrologic ecosystem services and the tourism sector are described. In the final section, the risks of increasingly stressed water resources on tourism and the South African economy are explored.


Curationis ◽  
2011 ◽  
Vol 34 (1) ◽  
Author(s):  
Kgaogelo E. Mokoka ◽  
Valerie J. Ehlers ◽  
Martha J. Oosthuizen

Background: South Africa is a source country for many destination countries that recruit registered nurses who emigrate for personal and/or professional reasons. A large number of South African nurses belong to the baby boomer generation (born between 1943 and 1964) who will retire within the foreseeable future. Statistics from the South African Nursing Council show a decline of 42.0% in the number of nurses who completed their training in South Africa from 1996 to 2005. These aspects combine to predict a potential dire shortage of nurses in South Africa within the foreseeable future.Objectives: Retention of registered nurses should be the focus of health-care planners to avoid crises in South Africa’s health-care services. This study attempted to identify factors that would influence registered nurses’ decisions to stay with their current employers in the Gauteng Province of South Africa.Methods: An exploratory descriptive quantitative design was adopted and questionnaires were sent to a sample of nurses, registered with the South African Nursing Council (SANC), with addresses in the Gauteng Province. A total of 108 nurses completed and returned questionnaires, of whom 77 (73.1%) had considered leaving their current employers.Results: The most important factors that would influence more than 90.0% of these nurses’ decisions to stay with their current employers related to finances, safety and security, equipment and/or supplies, management, staff and patients.Conclusions: In terms of Maslow’s Hierarchy of Needs Theory, deficiency needs (physiological, safety and social needs) should be met by improved salaries revised on an annual basis, paying long-service and outstanding-service bonuses, and improving the safety and security, as well the available equipment and supplies, at institutions. Sufficient numbers of nurses should be employed and vacancies should be filled rapidly. However, not all changes required to enhance nurses’ retention rates involve increased costs. Managers should lead by example and respect nurses, and encourage doctors as well as patients to do so, to meet nurses’ self-esteem needs. Recognising and rewarding outstanding service would meet nurses’ self-actualisation needs, as well as opportunities to further their education.


Author(s):  
Ngianga-Bakwin Kandala ◽  
Chibuzor Christopher Nnanatu ◽  
Natisha Dukhi ◽  
Ronel Sewpaul ◽  
Adlai Davids ◽  
...  

This study investigates the provincial variation in hypertension prevalence in South Africa in 2012 and 2016, adjusting for individual level demographic, behavioural and socio-economic variables, while allowing for spatial autocorrelation and adjusting simultaneously for the hierarchical data structure and risk factors. Data were analysed from participants aged ≥15 years from the South African National Health and Nutrition Examination Survey (SANHANES) 2012 and the South African Demographic and Health Survey (DHS) 2016. Hypertension was defined as blood pressure ≥ 140/90 mmHg or self-reported health professional diagnosis or on antihypertensive medication. Bayesian geo-additive regression modelling investigated the association of various socio-economic factors on the prevalence of hypertension across South Africa’s nine provinces while controlling for the latent effects of geographical location. Hypertension prevalence was 38.4% in the SANHANES in 2012 and 48.2% in the DHS in 2016. The risk of hypertension was significantly high in KwaZulu-Natal and Mpumalanga in the 2016 DHS, despite being previously nonsignificant in the SANHANES 2012. In both survey years, hypertension was significantly higher among males, the coloured population group, urban participants and those with self-reported high blood cholesterol. The odds of hypertension increased non-linearly with age, body mass index (BMI), waist circumference. The findings can inform decision making regarding the allocation of public resources to the most affected areas of the population.


2017 ◽  
Vol 37 (37) ◽  
pp. 63-76 ◽  
Author(s):  
Tracey McKay

AbstractThe international adventure tourism literature is remarkably silent on the geographical nature of the industry. This study seeks to provide a geographical analysis of the sector within the context of South Africa. The spatial analysis was undertaken by metropolitan area, secondary towns and small towns, using a dataset of adventure tourism enterprises. It was found that the sector is spatially concentrated and highly urbanised, despite the perception that adventure tourism requires ‘wild’ and outdoor spaces. With many adventure tourism enterprises located in South Africa’s metropolitan areas, it is a hither too unknown sub-sector of the South African urban tourism market. Urban settlements with large populations and a strong general tourism sector form a significant support base for adventure tourism operators. Cape Town is the dominant adventure tourism destination, making it the adventure capital of South Africa. A few small settlements were found to be highly dependent upon the sector for survival.


Obiter ◽  
2021 ◽  
Vol 31 (1) ◽  
Author(s):  
Mark Tait ◽  
Patrick Vrancken

The travel and tourism industry is the world’s largest industry. This industry is also seen as one of the priority growth areas for the South African economy. In South Africa travel and tourism activity is expected to grow at a rate of 4.8% per annum in real terms between 2007 and 2016. This will mean an increase in travel and tourism economic activity in South Africa from R198.1 billion in 2006 to R511.5 billion in 2016. Based on these figures it is estimated that the travel and tourism industry will contribute 9.3% of the South African Gross Domestic Product (“GDP”) by 2016. One of the main benefits of the travel and tourism industry is its potential for attracting foreign currency. Already, tourism is the fourth largest foreign exchange earner in South Africa. Furthermore, the travel and tourism industry has major potential for generating employment. It is expected that by 2016 the travel and tourism industry will provide 1.5 million jobs (or one in every 11.6) in South Africa. South Africa’s travel and tourism industry has experienced significant growth in the last decade. This resulted in a substantial number of guest houses and bed-and-breakfast establishments opening their doors in every city, town and in between. This growth is evidenced, for example, in that South Africa is well on its way to reaching its target of attracting 10 million foreign visitors per year with a reported 7.6% increase in foreign visitors in the first five months of 2008 to a total of 3 983 061. With the rise in travel and tourism activity, it can be safely forecasted that there will be a rise in litigation revolving around the respective rights of tourists and tourist service providers. In a nascent travel and tourism law jurisprudence, each case decided in this regard ought to be carefully considered by both legal practitioners and the industry. A matter came before the then Cape High Court during 2002, based on an action whose (continued) existence in South African law had been questioned more than eighty years earlier. The case was Gabriel v Enchanted Bed and Breakfast (2002 2 SA 597 CPD (hereinafter the “Gabriel case”)). Just to confirm that this was not to be an isolated reliance upon an almost obsolete remedy, the Gabriel case was followed in 2005 by Roy v Basson NO (2007 5 SA 84 CPD (hereinafter the “Roy case”)). The legal remedy in question is the Praetorian edict de nautis, cauponibus et stabulariis. (Considering the fairly unique nature of the legal ground under consideration in these two cases it is somewhat surprising to note that the court in the Roy case did not refer to the Gabriel case at all). Both these cases concern the liability of the proprietor of an inn in terms of the Praetorian edict de nautis, cauponibus et stabulariis and are therefore of particular relevance for the South African travel and tourism industry. It is therefore opportune to consider the Praetor’s edict and its application anew.


2011 ◽  
Vol 11 (1) ◽  
Author(s):  
Melville Saayman ◽  
Peet Van der Merwe ◽  
Riaan Rossouw

Purpose: The purpose of this article is to estimate the economic impact of biltong hunting in South Africa. Problem investigated: Higginbottom (2004), indicate there are no reliable global estimates of the economic impact of wildlife tourism, but one thing is certain, it generates considerable sums of money. This same accounts for South Africa's game industry, especially biltong hunting, where there is little to no information regarding the economic impact. Therefore the question to be investigated was what is the economic impact of biltong hunting in the South African economy. Research methodology: A non-probability method was used and a convenience sample was drawn from all the members (N = 17066) of the South African Hunters and Game Conservation Association (SAHGCA). A pilot study of 87 questionnaires was conducted in August and September 2004 in the North West Province at the Hartbees branch of SAHGCA. For the national survey, the questionnaires were mailed together with the members' monthly magazine (named SA Hunters/Jagters) during July 2005. A total of 1 024 (n) questionnaires were received back. Data was captured in Microsoft™ Excel™ and a Computable General Equilibrium (CGE) modelling approach was thereafter used to determine the economic impact of biltong hunting in the South African economy. Findings/implications: The contribution to real GDP is estimated to be in excess of R6 billion, with thousands of jobs being created by the increase in activities/services. In addition, the related improvements to the infrastructure of the country, especially the transport sector, will benefit productivity in the longer term and so lead to further increases in GDP. Originality: A significant contribution that this article has made is that this is the first time that the economic impact of biltong hunting in South Africa has been determined. It is also the first time that CGE modelling has been completed with regard to research in this sector in South Africa.Conclusion: This supports the opinion that biltong hunting is a viable and important sector of the tourism industry. The results clearly show that more should be done to expand hunting in South Africa as hunting affects, not only the economy, but also the price (and therefore the value) of game.


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