Developing Rural Economies through Small to Medium Tourism Enterprise: the case of Matatiele and Cedarville in the Eastern Cape, South Africa
- Authors: Mxunyelwa, Siyabonga , Matarinano, Obert , Vallabh, Dinesh
- Date: 2021
- Subjects: Matatiele, South Africa Small and medium-sized enterprises Small Business Computer File
- Language: English
- Type: text , article
- Identifier: http://hdl.handle.net/11260/6015 , vital:45081 , https://www.ijicc.net/index.php/ijicc-editions/2021/226-vol-15-iss-10
- Description: Globally, nations depend on small businesses as engines for economic growth. Small to Medium Tourism Enterprises (SMTEs), as part of the small business sector, are increasingly becoming important in terms of job creation, wealth creation and driving economic growth in smaller rural geographic areas. Utilising a mixed research approach, the paper identifies characteristics of SMTEs in Matatiele and Cedarville with the intention of identifying specific ways in which they can be supported to attain their real potential in enabling economic development in rural environment. Purposive sampling method was used to select respondents and self-administered questionnaires utilised to gather relevant data from managers/owners. The results indicate that the rural tourism is dominated by female-owned enterprises primarily offering accommodation services. Most of the enterprises have been in operation for a period of more than five years which points to potential growth as they are able to survive. The results further show that the businesses that participated in the survey intent employing more full-time employees. Furthermore, the results underscore that there is lack of local government support to promote entrepreneurship in the SMTEs sector particularly those that are located in the rural environment. The findings elucidate the ability of SMTEs to greatly reduce the high unemployment in rural economies if appropriate systems are put in place to support these enterprises. These findings have implications for the national, provincial and local government spheres in South Africa in their quest to create job opportunities in rural areas through entrepreneurship and SMTEs in order to provide impetus to the Eastern Cape Province and South African Economy. This paper
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- Date Issued: 2021
Customer relationship management in small to medium tourism enterprises (SMTEs) in the Eastern Cape Province
- Authors: Vallabh, Dinesh
- Date: 2014
- Subjects: Customer relations -- Management , Small business -- South Africa -- Eastern Cape , Tourism -- South Africa -- Eastern Cape
- Language: English
- Type: Thesis , Doctoral , PhD
- Identifier: vital:9322 , http://hdl.handle.net/10948/d1020797
- Description: The role of entrepreneurship in small to medium tourism enterprises is well recognised and acknowledged as a significant contributor to economic development and employment opportunities. Worldwide, small to medium tourism enterprises play a dominant role in the tourism industry. These businesses are often vulnerable to external economic forces and find it increasingly difficult to transform their strategic and operational management to face the challenges placed upon them. This study focuses on small to medium tourism enterprises in the Eastern Cape Province, which is economically the poorest province of South Africa. To ensure the growth and sustainability of small to medium tourism enterprises, owners need to make efficient and effective business decisions regarding the challenges their businesses face. The study examines the factors impacting customer relationship management in the context of small to medium tourism enterprises in the Eastern Cape. Customer relationship management, that is, building relationships with customers, has become of pivotal importance to many organisations as businesses strive to be competitive and profitable. While large organisations practice customer relationship management to enable them to better target profitable customers, improve customer services, enhance customer retention and ultimately improve business performance, small businesses often need assistance in understanding and effecting this complex relationship. The factors that could impact customer relationship management in the organisations are the focus of this study. Three major factors were identified, namely, strategic, operational, and organisational factors. The study furthermore examined the extent to which these factors are present in the tourism and hospitality sector of the Eastern Cape and investigated the relationships between these factors. Quantitative research was deemed appropriate for this study. Systematic random sampling was employed to select a sample of 332 respondent organisations from the 2012 database of the Eastern Cape Parks and Tourism Agency consisting of formally registered small to medium tourism enterprises. A total of 310 usable questionnaires were finally obtained. Both descriptive and inferential statistics were used in the study. Descriptive statistics were computed to reflect the organisations‟ and respondent managers‟ general characteristics and to summarise their measurement scores. Using inferential statistics, the study further investigated relationships between customer relationship management factors, as well as demographic factors. Data were subjected to exploratory factor analysis and both the validity (refer to section 2.10.1) and reliability (refer to section 2.10.2) of the research instrument was assessed. The relationships between customer relationship management variables were also investigated (refer to section 2.11.4). The research results support an overall significant association between customer relationship management readiness and business strategy, customer strategy, touch points and competencies, skills and technology. Relationships were also explored among customer relationship management factors and demographic characteristics. Significant results were found between perceived business performance and the gender of managers, family businesses and gross annual turnover. The most salient contributions of this research can be summarised as follows. The overview of the importance of tourism and the role of small to medium enterprises in the tourism and hospitality industry of the Eastern Cape will benefit researchers and potential owners who have an interest in this sector. The study contributes to an improved understanding of the factors that should precede customer relationship management. The study established a profile of the small to medium tourism enterprises in the Eastern Cape which can serve as a basis for future research. A measuring instrument for assessing respondents‟ views on the existence of the strategic, operational and organisational factors in their organisations was developed. This instrument showed good internal validity and reliability and can serve as a basis for the same purpose in contexts other than the tourism and hospitality sector. This research has made a contribution toward a largely under-researched area concerning customer relationship management in small to medium enterprises. Recommendations for managers and consideration of future research included the following. Managers need to have a strategic vision and a strong customer-centric focus. Through understanding customers and their needs, offerings can be tailored to maximize the overall value of customers, thereby, improving business performance. Through efficient operational processes in place, enhanced customer service levels can be attained in the organisations. Managers need to effectively manage customer information through data warehousing and technology. Top management commitment is a crucial element for ensuring improved customer services. Managers need to train staff with respect to customer services, thus enhancing CRM. Future researchers can conduct a longitudinal study and investigate the same factors which could impact customer relationship management. A verification of the usefulness of the measuring instrument in examining the determinants of customer relationship management and the level of development regarding other small businesses is suggested. It is recommended that this study be replicated abroad in an effort to verify to what extent the determinants of customer relationship management are evident in small businesses of other countries.
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- Date Issued: 2014