SMMEs are not a side business. They are the ones driving the industry. And, often, the development of new experiences to grow the diversity of a tourism offering in a destination, is created by small businesses.
It is therefore important that, as the tourism industry focuses on recovery, growth and building resilience, SMMEs cannot be left behind.
This was the message from Tourism Business Council of South Africa CEO, Tshifhiwa Tshivhengwa, who delivered a TED Talk about the role of entrepreneurs at the recent Africa Tourism Leadership Forum (ATLF) held in Gaborone, Botswana, late last month.
He highlighted the many challenges SMMEs faced and how they could be addressed.
De-regulate
The first is to redress and regulate the legislative framework that is not conducive to creating an environment where SMME businesses can grow and thrive. He issued a challenge to the private sector to adapt and change regulations that do not create barriers to growth for small businesses.
But, Tshivhengwa added, it was also up to the private sector to highlight these regulatory challenges and demonstrate to Government what needed to be changed – and to show how these changes could bring about growth and create jobs.
Speak with a stronger voice
Tshivhengwa highlighted the disjointedness of the industry’s SMMEs – noting that, if they formed coalitions and networks, it would no longer be a question of one small voice against the large voice of the larger companies.
By networking and working together, SMMEs could make their voices heard and establish a stronger presence in the marketplace, he asserted.
DMOs and SMMEs must work together
Tshivhengwa pointed out a major gap – highlighting that SMMEs were often hampered in their efforts to go directly to key source markets.
“When they work with the DMCs, it is often on the ground. And, should they be sponsored by a marketing agency or a government department to attend a big trade show like WTM London or ITB Berlin, they sit there and showcase what they have to offer. But often, the deals have already been signed,” he explained.
“The key is for them to get ongoing exposure to source markets. So, how do we ensure that SMMEs and DMOs work together to package services and products that can be sold in major source markets?” he queried.
SMMEs to build resilience
“It is easy to say SMMEs must build resilience,” commented Tshivhengwa. “But often resilience is linked to money. And this sector does not have easy access to funding or financing.”
He said there needed to be funding schemes that were easier for small businesses to access.
