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

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INTRODUCTION TO THE STUDY 3

Department of Tourism Government Policy 4

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Explain reasons for the mismatch Make suitable recommendations to harmonise supply and demand 6

Identify barriers and challenges Propose sustainable solutions 7

LITERATURE REVIEW 8

DTI SMEs Review National White Papers 9

RESEARCH METHODOLOGY 10

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 11

RESULTS AND DISCUSSION 12

The PCOs are catered for by the available supply of government support services 17% All types Only Back owned 50% 33% All but with preferential treatment to Black owned 13 Figure 1: Targeted support beneficiaries

16.67 5 Competitive strength 1(weakest) ‐ 5(strongest ) 16.67 16.67 training 22.22 4 22.22 11.11 prefferred procurement 22.22 3 44.44 50 financial support 38.89 2 16.67 22.22 0 1 0 0 0 10 20 30 40 50 60 Percentage % Figure 2: Extent of the need for support services in order to survive in current PCO DEMAND: economic climate 14

Inefficiencies exist in the support program design that disable effective supply of support services 70 60 Percentage contribution 50 40 30 58.33% 20 33.33% 10 16.67% 0 Poor research Centralised decision making No Impact Assessment studies Figure 3: Flaws in the support program design 15

The majority of the PCOs expressed an ignorance towards the support services available to them 22% Yes No 78% Figure 4: PCO knowledge about support services available to them 16

CONCLUSIONS AND RECOMMENDATIONS 17

Poor synchronisation of demand and supply Government PCO supply demand Support services structural design inefficiencies limited knowledge of support services • Centralised support structures Failure to properly direct demand • • Absence of impact assessments Poor research activities • 18

Govt. adequate supply PCO adequate demand 19

Major industry players • Development of a Local Service Centre – National White Paper on Small Businesses Other MICE service providers (South Africa 1995: 46) 20

Synchronisation of demand and supply of support services between the government support service providers an the PCOs 21

Framework SME development for after use of support support services Impact Assessment activities 22

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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. 24