A framework for small and medium tourism enterprises in Tshwane townships, South Africa

Abstract

Despite there being general agreement that SMEs are valuable in the global and South African economy to aid in creating jobs and in growing the economy, few benefits accrue to these enterprises as they endure a number of challenges which make them unsustainable. This research aimed to investigate the sustainability of SMEs in Tshwane townships, with an aim to design a framework that could be used by other SMEs that intend to enter the tourism industry, to ensure that they are sustainable and can contribute towards the expansion of the South African economy. The primary data was collected through a questionnaire, which was used to obtain information on Tshwane township tourism SMEs, as a way of detecting whether they were sustainable or not. The results indicated that the Tshwane township tourism SMEs were very small enterprises created by owners who were passionate about the tourism product. These enterprises have not been able to grow and employ more people but have provided employment and survival income for the owner and, in some cases, two additional people. SMEs face various challenges relating to sustainability, one of the main challenges being financial stability. SMEs are therefore unable to play their intended role in the creation of employment as well as in contributing to the economy as a whole. In an attempt to assist the owners and/or managers of SMEs to fulfil their roles, an SME framework was developed in the course of the present research. This framework comprises a step-by-step guide that asks all the relevant questions aimed at getting to know the business and culminating in a range of recommendations that could assist in making these SMEs sustainable.