Small, medium, and micro-enterprises (SMMEs) are widely recognised as engines of economic growth and job creation, particularly in developing economies like South Africa. Within the tourism sector, these enterprises are central to employment generation, poverty reduction, and sustainable development. However, despite various forms of support, many tourism SMMEs fail within their first five years. This study by Dr Bongani June Mwale (2021) investigated the effectiveness of business incubation in supporting the growth and sustainability of tourism SMMEs in Gauteng Province.
Research Aim and Objectives
The study aimed to evaluate the importance and effectiveness of business incubation services in enhancing the success of tourism SMMEs. Specific objectives included:
- Assessing the perceived role of incubation support.
- Evaluating critical success factors such as training, infrastructure, consultancy, marketing, and networking.
- Comparing the perceived importance and effectiveness of incubation services.
- Developing recommendations to strengthen incubation outcomes.
Methodology
A quantitative research design was adopted using a survey of 103 SMME owners and managers in Gauteng’s tourism sector. Tools such as Cronbach’s alpha, factor analysis, and paired-sample t-tests were applied to ensure validity, reliability, and significance testing at the 5% level
Key Findings
The study revealed that while incubation services were considered highly important, their effectiveness was only partially realised in practice. Notable findings include:
- Infrastructure: Limited access to affordable premises and facilities hindered growth.
- Marketing Support: Digital marketing and promotional opportunities were underutilised.
- Training and Mentorship: Beneficiaries valued skills development, but gaps remained in delivery.
- Networking and Consultancy: Participants emphasised the need for stronger collaboration and professional advisory services.
Significant differences emerged between the perceived importance of services and their actual effectiveness, highlighting inefficiencies in programme implementation.
Recommendations
The dissertation proposed several practical and policy recommendations:
- Infrastructural Support: Registering tourism SMMEs and providing affordable, well-equipped business premises.
- Marketing Services: Enhancing digital platforms (e-tourism, online booking systems) and expanding access to trade fairs and exhibitions.
- Financial Management: Introducing tailored funding, insurance, and low-cost credit solutions.
- Research and Development: Strengthening innovation and project management strategies.
- Integrated Frameworks: Adopting the SMME Incubation Sustainability Framework (SISF) and linking it to Technology, Innovation, People, and Systems (TIPS) for long-term competitiveness.
Contribution and Limitations
This study contributes to South African literature by offering a contextual framework for tourism incubation. It introduces the SISF model, guiding policymakers and incubators in aligning support with sector-specific needs. However, limitations include the exclusive focus on Gauteng and government-sponsored incubators, with recommendations for future research to expand across provinces, sectors, and private incubation models.
Conclusion
Business incubation holds significant potential for boosting the success of tourism SMMEs in South Africa. While incubation services are widely regarded as crucial, their effectiveness remains uneven. By addressing infrastructural, financial, and capacity-building gaps and by institutionalising integrated frameworks like SISF, South Africa can enhance the resilience and sustainability of tourism SMMEs, thereby driving inclusive economic growth.
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