Original Research
Lack of government support: A hindrance to entrepreneurship development of SMTE sector in Buffalo City, South Africa
Submitted: 15 April 2024 | Published: 28 February 2025
About the author(s)
Siyabonga Mxunyelwa, Department of Tourism, Hospitality and Sports Management, Faculty of Management and Public Administration Sciences, Walter Sisulu University, East London, South AfricaDinesh Vallabh, Department of Tourism, Hospitality and Sports Management, Faculty of Management and Public Administration Sciences, Walter Sisulu University, East London, South Africa
Abstract
Background: The lack of government support hinders entrepreneurship development thus burdening the South African economy. The small to medium tourism enterprise (SMTE) sector currently faces challenges due to lack of government support.
Aim: This study sought to investigate the lack of government support among owners and managers of SMTEs in Buffalo City, South Africa.
Setting: This study focusses on the role of government support in tourism entrepreneurial ventures within Buffalo City.
Methods: The study utilises both qualitative and quantitative research methods to analyse the role of government in the SMTE sector.
Results: The study elucidates that some of the owners and managers that operate these businesses lack government support to manage businesses to perform optimally and provide impetus to entrepreneurship development.
Conclusion: The study indicates that government support is crucial to entrepreneurial development. Therefore, it is recommended that government must invest in supporting small business initiatives to enable them to improve performance. Thus, entrepreneurship development will help developing economies such as Buffalo City.
Contribution: The article sought to investigate the challenges that relate to a lack of government support. The role of government is critical in developing initiatives that could assist owner-managers in discharging their managerial responsibilities of SMTEs. Furthermore, it is recommended that the government should provide effective entrepreneurial training support programmes in order to foster the growth potential of SMTEs in Buffalo City.
Keywords
JEL Codes
Sustainable Development Goal
Metrics
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