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Black Economic Empowerment: Procurement and Investment – The case of Small to medium Professional Conference Organisers in Durban Durban University of
TechnologyB‐Tech
Tourism Management
1
2
INTRODUCTION TO THE STUDY3
Department of Tourism
Government Policy
4
5
Explain reasons for the mismatch
Make suitable recommendations to harmonise supply and demand
6
Identify barriers and challenges
Propose sustainable solutions
7
LITERATURE REVIEW8
National White Papers
DTI SMEs Review
9
RESEARCH METHODOLOGY10
Study AreaDurban, South Africa
Study TypeDescriptive
Sampling TechniquesPCO samples – Snowballing (18)Govt. agencies – Judgement (12)
Survey TechniquesPCOs – structured self administered questionnaires
Govt. agencies – interviewsInformation and Consent letters
36 days survey period
Data AnalysisThematic Content Analysis
Microsoft Excel11
RESULTS AND DISCUSSION12
The PCOs are catered for by the available supply of government support services
All types
Only Back owned
All but with preferentialtreatment to Black owned
50%
17%
33%
Figure 1: Targeted support beneficiaries 13
0
22.22
50
11.11
16.67
0
16.67
44.44
22.22
16.67
0
38.89
22.22
22.22
16.67
0 10 20 30 40 50 60
1
2
3
4
5
Percentage %
Compe
titive strength 1(weakest) ‐
5(strongest)
training
prefferredprocurement
financialsupport
Figure 2: Extent of the need for support services in order to survive in current economic climatePCO DEMAND: 14
Inefficiencies exist in the support program design that disable effective supply of support services
0
10
20
30
40
50
60
70
Poor research Centralised decision making No Impact Assessment studies
Percen
tage con
tribution
33.33%
58.33%
16.67%
Figure 3: Flaws in the support program design
15
22%
78%
YesNo
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 16
CONCLUSIONS AND RECOMMENDATIONS
17
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 PCOdemand
18
Govt. adequate supply PCO adequate demand
19
• Development of a Local Service Centre– National White Paper on Small Businesses
(South Africa 1995: 46)
Major industry players
Other MICE service providers
20
Synchronisation of demand and supply of support services between the government support service providers an the PCOs
21
22
SME development after use of support
services
Framework for
support Impact
Assessmentactivities
23
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
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