Chapter II:

Entrepreneurship
and Economic
Development in
Tourism and
Hospitality
PREPARED BY: MARIA DIANA MAY R. BORJA
risk and rewards of
entrepreneurship
The business of entrepreneurship in itself is risky enough to discourage
some people from trying to venture it. Entrepreneurs run the risk of
employing resources that are unmaximized and underutilized. Making
an effort to provide training and create a strategic action when there are
unfair competition and industrial sabotage. More importantly, the
entrepreneur him or herself is the business.
There are two factors to consider risk in entrepreneurship, "the risk an
entrepreneur has to face", and "the risk an entrepreneur has to take".
"The risk an entrepreneur has to face" before you enter a business you
are aware and ready for the risks or problems you face. Most
entrepreneurs are inherently risk-takers. Here are some of the risks that
an entrepreneur might face.
risk in financial sector
risk due to vintage strategies
market risk
competitive risk

BSTM2A, BORJA, Maria Diana May R.

Next, the risk factor is “the risk an entrepreneur has to take. Risk-taking
is a non-avoidable factor in entrepreneurship. To be a successful
entrepreneur, you have to be confident to catch risks and face the
challenges that follow. The following are the risks that the entrepreneur
has to take.
abandoning the current source of income
sacrificing personal capital
trusting a key employee

Here is the other risk at sustainability that may occur in an enterprise or

business.
Poor access to finance
Low productivity
Lack of skill upgrading
Technological obsolescence
Lack of information
Inappropriate location
Management incompetence
Poor market access

Businesses are moving fast in the market. Ambitions are not only limited
but also have boundary lines. The ups and downs in business are
relatively transient. The qualities and personal accomplishments of an
entrepreneur are important.

The rewards of entrepreneurship are more and easily far-reaching. It

promotes self-sufficiency. Entrepreneurship empowers individuals to
enhance or hone their national identity and pride. They also have the
freedom to engage in legitimate enterprises to have fair competition
and honest dealing with their stakeholders. And the income is created
and distributed fairly.

Enterprises are encouraged to thrive with the following rewards.

Low start-up cost
Low overhead cost
Catering to small markets
Opportunity to develop more personal relationship
Agile response to changing trends

BSTM2A, BORJA, Maria Diana May R.

drivers and barriers
to entrepreneurship
Various factors drive or inhibit the collective interest to pursue an
entrepreneurial activity. The situation of the global and local
environment are critical considerations for this kind of entry decision.
Characterized by:
risks,
uncertainty,
competitiveness,
cultural dynamics and process, and
people independence.

They have a good knowledge of the status of the local and global
environment which will prove important for the beginning
entrepreneurs. Here are the variables so that an entrepreneur can fully
understand how the business world works.
R&D – Research and Development
ICT – Information Communication Technology
ESG – Environment, Social, Corporate Governance
CCD – Cross-Cultural Diversity
Emerging ideas (AI, VR, Blackmail)
Trade Agreements (APEC, NAFTA)

Apart from the global variables mentioned we also have local variables
which are important in the decision making of a trader. The business is
greatly affected by.
Prevailing culture
The direct and indirect competitors
Active and prospective customer base
A community where the enterprise situated
Collaborators of the business

BSTM2A, BORJA, Maria Diana May R.

What are the different barriers to entrepreneurship? Entrepreneurs are
the drivers of innovation and every day their determination touches
billions of lives and creates employment opportunities needed for
economic growth.
capital
market
raw materials
labor
infrastructure

Every entrepreneur aims to follow their passionate approach and

convert it into a successful business by earning more and more profits
and creating goodwill in the market. But many barriers can block the
path to the success of entrepreneurship. So there is no other option for
an entrepreneur to be successful without solving or removing these
major barriers in their respective field.
managing finances
inadequate market experience
non-strategic planning
lack of capacity
fear of failure
not having a right team

BSTM2A, BORJA, Maria Diana May R.

applied ethics in
service industry
Tourism and Hospitality have a unique characteristic of business
enterprises that have at the onset into ethical and legal practice.
Practicing ethics in the conduct of business, especially in the service
business.
Converts to gaining a competitive edge
Better brand image
Increased popularity
Enhance stakeholders trust
Sustained recurring demands

In Ethics 101, we studied the meaning of ethics and morals. Ethics

denotes rules of behavior that differentiate what is right and what is
wrong while morals refer to what is acceptable, good conduct, and
character. Meanwhile, for the tourism and hospitality industry, values ​
that are
honesty
excellence
care
responsibility, and respect for others

The growing concern for ethical practices present in the service industry
is a palpable reality or the reality of life where it creates a rift or hole that
when not addressed and can result in
abuse
dishonesty
exploitation and the service providers are vulnerable to theft
Apart from these, discrimination is also one of the frequent
problems we face. Underage workers are also an example.

Tourism activities involve close interaction between tourists and the

local community host results in:
Culture importation
Values eradication
Overconsumption
Overcommercialization

Pollution, economic infringement, depletion of natural recourses,

environmental degradation, sex abuse, exploitation, and unfair labor
practices are some examples of ethical issues in reality.

BSTM2A, BORJA, Maria Diana May R.