Stokvel investment: A tourism SMME enabler in South Africa

Abstract

The growth of the global tourism industry has resulted in the emergence of several small and medium-sized enterprises (SMMEs), and their significance continues to attract the attention of various governments and other industries, such as hotels, airlines, ground transport, etc. Although the industry experienced a halt due to the coronavirus disease 2019 (COVID-19) pandemic, tourism is still identified as a critical sector for the international economy. Emphasis has been placed on the importance of SMMEs and the need for enterprise development that will transform the economy of Africa. Entrepreneurship has been documented as crucial for the improvement of the South African economy and the best way that employment can be created in South Africa. Stokvels are introduced as an investment alternative that could bring about socio-economic development in the tourism industry. The primary objective was to explore how stokvels can be utilised as an alternative form of investment to enhance tourism entrepreneurship. A positivist epistemology and quantitative research approach was followed. IBM SPSS V28 and AMOS V28 were used to analyse the data, resulting in a multi-mediation Tourism Stokvel Model for Social Entrepreneurship and Transformation. Tourism authorities and governments could use the model as a guideline on how to plan budgets for investment and funding of tourism entrepreneurship for the transformation of the tourism industry. Future research is needed on how women-led initiatives in the form of stokvels and SMMEs can contribute to the national and social economy.