Factors inhibiting large enterprises from establishing sustainable linkages with black-owned tourism SMMEs in South Africa

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10 Citations (Scopus)

Abstract

South African policy has identified the need for the tourism sector to undergo transformation, especially in relation to the black ownership of tourism companies. However, in reality the above has not taken place at the pace that the government desired, owing to various challenges. Of particular concern has been the uncertain nature of the effective linkages between large enterprises and smaller, black-owned enterprises, in relation to the opportunities that the large enterprises present for mutual benefit and participation in the tourism value chain. The current study aims at determining the main factors that inhibit large enterprises from establishing such long-lasting business linkages with black-owned SMMEs, for the sustainable development of South Africa's tourism industry. A qualitative research design was adopted in conducting the study. Through a series of interviews with large tourism enterprises, the study reveals a number of factors that impede cooperation between large and small tourism enterprises. Among others are the negative perceptions that are held by large businesses regarding the capacity and resourcing of small black enterprises, as well as the lack of access between the two, linked to the procurement patterns of large enterprises, in particular. The study, therefore, proposes some potential strategies for nationwide adoption, which might serve to improve cooperation between the large and small enterprises for the overall benefit of the South African tourism industry, thereby forming sustainable linkages between the dominant large enterprises and the smaller, blackowned tourism SMMEs.

Original languageEnglish
JournalAfrican Journal of Hospitality, Tourism and Leisure
Volume8
Issue number3
Publication statusPublished - 2019

Keywords

  • B-BBEE
  • Linkages
  • SMMEs
  • South Africa
  • Sustainability
  • Tourism

ASJC Scopus subject areas

  • Geography, Planning and Development
  • Tourism, Leisure and Hospitality Management

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