Modelling selected factors influencing business success in tourism-related entrepreneurship: a case of Mtubatuba Local Municipality
Loading...
Date
2022-11
Authors
Journal Title
Journal ISSN
Volume Title
Publisher
University of Zululand
Abstract
Entrepreneurship is recognised as a significant component of economic growth, employment generation, and innovation. Tourism remains an important economic sector worldwide, and its contribution to any country’s economic growth, employment, and poverty reduction, including developing countries like South Africa (SA) cannot be overemphasised. Drawing from human capital theory and theory of opportunity identification, this research aimed to develop and statistically test a theoretical model of tourism entrepreneurial success by exploring factors that may lead to tourism entrepreneurial success and investigating the relationship links on how these factors interact to influence tourism entrepreneurship success. The study used a sample of 350 tourism-related entrepreneurs surveyed in different regions of Mtubatuba Local Municipality, KwaZulu-Natal province of South Africa, to address study hypotheses. Data analyses were conducted in two phases. The first phase of the analyses dealt with data integrity, using IBM SPSS software version 28, while the second phase tested the measurement (that is, construct validity and reliability of the instrument) and structural model using partial least square-structural equation modelling (PLS-SEM) method involving a multivariate analytical technique, implemented on SmartPLS software version 4.0.8. The study found significant relationships between human capital theory and opportunity identification theory with business success in tourism entrepreneurship. The study examined theoretically derived factors leading to tourism business success and the relationship was higher for internal environmental factors than external environmental factors. The results suggest that internal business environmental factors such as entrepreneurs’ profile (e.g., gender, age, level of education), entrepreneurs’ type of business, and entrepreneurial attributes have significant influence on tourism business success. The results further validate that external business environmental factors such as the nature of the business competitive environment, government regulations, guidance on business development, and access to information have significant influence on tourism business success. This study provides an alternative model that challenges the existing models of business success and this alternative model, which is in-line with human capital theory and opportunity identification theory, offers more flexibility in understanding business success models in different entrepreneurial contexts. Based on the findings of this study, recommendations were made to Mtubatuba Local Municipality business support offices, Tourism KwaZulu-Natal, and owners of Small Medium and Micro Tourism Enterprises in Mtubatuba Local Municipality. Further studies in other African or developing nations are necessary to compare and contrast different entrepreneurial success models generated from these nations. By so doing, national specifics will be unearthed and added to the body of knowledge.
Description
A thesis submitted to the Faculty of Arts in fulfilment of the requirements for the Degree of Doctor of Arts in the Department of Recreation and Tourism at the University of Zululand, South Africa, 2022.