Durban University of Durban Technology B Tech Tourism Management - - PowerPoint PPT Presentation

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Durban University of Durban Technology B Tech Tourism Management - - PowerPoint PPT Presentation

Black Economic Empowerment: Procurement and Investment The case of Small to medium Professional Conference Organisers in Durban University of Durban Technology B Tech Tourism Management 1 2 INTRODUCTION TO THE STUDY 3 Department of


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Black Economic Empowerment: Procurement and Investment – The case of Small to medium Professional Conference Organisers in Durban

Durban University of Technology B‐Tech Tourism Management

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INTRODUCTION TO THE STUDY

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Department of Tourism Government Policy

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Explain reasons for the mismatch Make suitable recommendations to harmonise supply and demand

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Identify barriers and challenges Propose sustainable solutions

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LITERATURE REVIEW

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National White Papers DTI SMEs Review

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RESEARCH METHODOLOGY

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Study Area Durban, South Africa Study Type Descriptive Sampling Techniques PCO samples – Snowballing (18)

  • Govt. agencies – Judgement (12)

Survey Techniques PCOs – structured self administered questionnaires

  • Govt. agencies – interviews

Information and Consent letters 36 days survey period

Data Analysis Thematic Content Analysis Microsoft Excel

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RESULTS AND DISCUSSION

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The PCOs are catered for by the available supply of government support services

All types Only Back owned All but with preferential treatment to Black owned

50% 17% 33%

Figure 1: Targeted support beneficiaries

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22.22 50 11.11 16.67 16.67 44.44 22.22 16.67 38.89 22.22 22.22 16.67 10 20 30 40 50 60 1 2 3 4 5

Percentage % Competitive strength 1(weakest) ‐ 5(strongest) training prefferred procurement financial support

Figure 2: Extent of the need for support services in order to survive in current economic climate

PCO DEMAND:

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Inefficiencies exist in the support program design that disable effective supply of support services

10 20 30 40 50 60 70

Poor research Centralised decision making No Impact Assessment studies Percentage contribution

33.33% 58.33% 16.67%

Figure 3: Flaws in the support program design

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22% 78% Yes No The majority of the PCOs expressed an ignorance towards the support services available to them Figure 4: PCO knowledge about support services available to them

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CONCLUSIONS AND RECOMMENDATIONS

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Poor synchronisation of demand and supply

Support services structural design inefficiencies

  • Centralised support structures
  • Absence of impact assessments
  • Poor research activities

limited knowledge of support services

  • Failure to properly direct demand

Government supply PCO demand

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  • Govt. adequate supply

PCO adequate demand

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  • Development of a Local Service Centre

– National White Paper on Small Businesses

(South Africa 1995: 46)

Major industry players Other MICE service providers

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Synchronisation of demand and supply of support services between the government support service providers an the PCOs

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SME development after use of support services Framework for support Impact Assessment activities

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References

  • Rogerson, C.M. 2006. The market development approach to SMME development: implications for local government in South
  • Africa. Urban Forum (Online).17(1): 54-78. Available: http://link.springer.com/article/10.1007/BF02681258 (Accessed 10

April 2014)

  • Rogerson, C.M. 2005. Unpacking tourism SMMEs in South Africa: structure, support needs and policy response.

Development Southern Africa (online), 22 (5): 623-642. Available: http://dx.doi.org/10.1080/03768350500364224 (Accessed 14 April 2014)

  • Mshenga, P.M. and Richardson, R.B. 2012. Micro and small enterprise participation in tourism in coastal Kenya. Small

business economics (online), 41 (3): 667-681. Available: http://link.springer.com/article/10.1007/s11187-012-9449-5 (Accessed 11 April 2014)

  • Thomas, R., Shaw, G., and Page, S. J. 2011. Understanding small firms in tourism: a perspective on research trends and
  • challenges. Progress in tourism management (online), 32 (963 -976). Available:

http://www.sciencedirect.com/science/article/pii/S0261517711000471 (Accessed 14 April 2014).

  • South Africa. Department of Trade and Industry. 2004. Review of 10 years of small business support in South Africa 1994-
  • 2004. Entrepreneurial empowerment, job creation and equity facilitated: An analysis of the evolution of public sector support

for small enterprises in South Africa. Government Printer.

  • South Africa. Department of Trade and Industry. 2008. The Department of Trade and Industry Annual Review of Small

Business Support in South Africa. Government Printer.

  • South Africa. 1995. National White Paper on Small Businesses. Cape Town. Department of Trade and Industry.
  • South Africa. Department of Tourism. 2011. National tourism sector strategy. Pretoria: Government Printer.

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