Name: Adarsh Bhavish Dayal

ID: S11159560

Draft of Literature Review

The tourism industry plays a significant role in the less developed countries. It is whereby the
tourism industry gives turn to new opportunities for the economy to expand and with this; it
helps in improving the living standards of the locals as well, (Lee-Ross & Lashley, 2011).
The tourism industry gives opportunities to the locals to engage in tourism activities by
displaying the local talents or even by diversifying products that can be sold in the tourism
market and in return generate revenue sources, (Morais, Ferreira, Nazariadli, 2017).
Therefore, with regards to the opportunities given to the locals, it helps in starting up new
ventures that are mostly owned and operated by the locals and this acts as a vehicle for self-
determination for the locals because as mentioned the micro-businesses helps to promote
economic development and also improves ones standard of living. The tourism micro-
businesses and the entrepreneurs involved in it, try to create and develop new products in the
tourism market to obtain financial rewards, (Rusu, Sergiu, Lucian & Isac, 2015).

The Entrepreneurs of the tourism micro-businesses and involvement of family members

in the businesses:

The Entrepreneurs takes a great amount of risk to start up a business in the tourism industry
because the tourism sector in the less developed countries are mostly depended on the foreign
markets and at times it faces political and economic instabilities and this results in less
tourists coming to the less developed countries, (Rusu, Sergiu, Lucian & Isac, 2015). Most of
the tourism micro-businesses in the less developed countries are owned and operated by the
family members of the entrepreneur and is regarded as a family enterprise business, (Rusu,
Sergiu, Lucian & Isac, 2015). The innovations of tourism products by the entrepreneurs in the
tourism industries (mostly by micro-businesses) if fully successful, leads to greater socio and
economic benefits for the entrepreneur such as greater name in the market and improved
living standards, (Morais, Nazariadli &Ghahramani, 2017). These factors act as a motivator
for the entrepreneurs that are involved in the tourism industry. Therefore, the entrepreneurs
involved in the tourism micro businesses would want to further work towards in achieving
these rewards and this helps in the development of microbusinesses as well, (Rusu, Sergiu,
Lucian & Isac, 2015). Thus, it can be said that the entrepreneurs play a major role in the
economy; it is whereby it just not only benefits the entrepreneur in terms of economic
rewards, however, the innovations and efforts made the microbusinesses also helps in
providing the jobs for the local community and in return their standard of living also
improves.
The Contributions made by the tourism microbusinesses towards the economy:

The Tourism industry are considered as an opportunity because it helps an economy to

prosper economically and even helps in future developments as well, (Mshenga, Richardson,
Njehia &Birachi, 2010). The major contributions made by the tourism microbusiness towards
the economy are firstly, it helps to contribute towards the gross domestic product of the
economy. According to Brauer (2009), Gross Domestic Product measures the dollar value of
all goods and services produced in an economy in a given period. The microbusinesses
contribute towards the Gross Domestic Product by producing the tourism products, which are
sold in the tourism market and in return helps to generate income in terms of foreign
exchange. Through selling tourism products and earning foreign exchange currency, the
tourism microbusinesses are able to minimise foreign exchange leakages, (Mshenga,
Richardson, Njehia &Birachi, 2010). This is because most of the tourism microbusinesses are
owned and operated by the locals, therefore, the income generated by the businesses remains
in the economy, (Rusu, Sergiu, Lucian & Isac, 2015). Secondly, the tourism microbusinesses
creates employment opportunities for the locals, (Mshenga, Richardson, Njehia &Birachi,
2010). This is because the nature of the tourism industry is mostly labour oriented; therefore,
it requires lot of human effort. Thus, due to this factor, more job opportunities are created and
the locals are advantaged. It is whereby, the people employed by the businesses get a chance
to improve the living standards and earn a living. Therefore, it can be said that the tourism
microbusinesses significantly contribute towards the economic development, it is whereby,
the tourism microbusinesses helps to minimise economic leakages and it creates employment
opportunities for the locals.

Increase in Women Empowerment and Entrepreneurship in tourism microbusinesses:

The participation of the Women in the tourism industry and the microbusinesses have
significantly increased in the South Pacific, (Movono & Dahles, 2017). Thus, according to
the study conducted by Apisalome and Heidi (2017) stated that the involvement of the Fijian
women in the tourism businesses have been significantly successful in the business
operations and with this, have shown that gender is not a barrier with regards to managing a
tourism business. This study also showed that the women in the tourism industry have
achieved greater economic benefits and with this, have attained empowerment in the social
and political field as well. Therefore, it can be said that there is no longer gender differences
available when it comes to managing a business in the tourism industry. Women have
significantly proved that they can also be successful when it comes to managing a business in
the tourism industry.

Major problems faced by the tourism microbusinesses:

The microbusinesses in the tourism industry play a major role towards economic
development and provides many opportunities for the locals in that economy, (Mshenga,
Richardson, Njehia &Birachi, 2010). However, although the microbusinesses in the tourism
industry provides a greater economic benefits, on the other hand there are many problems
faced by the microbusinesses which causes hindrances in further growth and development for
these businesses. Most of the time, it is seen that the microbusinesses face many financial
problems to further advance the business growth because the microbusinesses are not able to
manage their cash flows, (Naidu & Chand, 2012). Moreover, with regards to the study
conducted by Suwastika and Anand (2012), showed the major problems faced by
microbusinesses and these include: Firstly, financial problems such as capital financing and
start-up cost and other financial obligations with regards to running the business, (Gheres,
Gogozan & Pop, 2011). Secondly, administrative problems such as getting the right people in
the organisation for a particular post, at times the appropriate people are not available in the
organisation because some microbusinesses cannot afford highly skilled personnel’s due to
its financial abilities; therefore, the microbusinesses are not able to perform well, (Naidu &
Chand, 2012). Finally, sales and debtors, this is not a major problem for the microbusinesses,
however, to some extent it affects the growth of the microbusinesses in the tourism industry.
It is whereby at times microbusinesses are not able to reach its sales targets due to political
stabilities or government instabilities and even bad weather conditions, (Mensah-Ansah,
2011). In addition, in the less developed countries, the economy at times faces political and
environmental stabilities, thus, with regards to these factors, the microbusinesses suffer and
its further growth is also affected with it. Therefore, it can be said that the tourism
microbusinesses play an important role in the economy and helps to improve the economic
conditions, however, there are some factors that can cause hindrances in the growth of
tourism microbusinesses.

In retrospect, it can be said that the tourism microbusinesses play a significant role in the
economy. It is whereby the tourism microbusinesses contribute towards the economy by
contributing towards the gross domestic product. It is whereby the products (tourism
products) produced by the tourism microbusiness are sold in the market place either locally or
internationally and in return helps to earn foreign exchange for the economy. In addition, the
tourism microbusinesses create employment opportunities for the locals and this helps to
improve the living standards of the employees as well, (Lee-Ross & Lashley, 2011).
Moreover, in the recent years, the trend shows that women as entrepreneurs are now entering
in the tourism microbusiness sector. This shows that there are no longer gender differences in
terms of becoming an entrepreneur in the tourism industry and the women are able to manage
the business operations successfully and has significantly contributed towards the economy
as well. Finally, despite the fact that micro-businesses are significantly contributing towards
the economy, however, at times there are some factors such as financial and administrative
problems, has led to growth and development problems for the tourism microbusinesses. As
microbusinesses are at the developing stage in most of the less developed countries,
therefore, it will definitely face financial problems and political instabilities. Thus, due to
these factors, at times it causes hindrances in the growth of tourism microbusinesses.

(1419 words)
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