Chapter 10: Tourism Entrepreneurship and Social Capital
Tourism Entrepreneurship: Major Constraints
• Limited access to finance• Low skills• High operational costs
• Social enterprises tend to address unmet social needs due to market and government failures
The Role of Social Capital• Increases the likelihood of achieving socio-economic
goals• Provides a specific type of resource that is embedded
in the relations between an individual and other entities and the capacity to facilitate productive activity
• Comprises physical, human and knowledge assets necessary for economic growth
• Concerns the different network structures that facilitate or hinder access to social resources and the nature of the social resources
Public-Private Partnerships
• Shared Goals• Collective responsibilities• Effective Leadership• Stakeholder Communication• Community Capacity• Supportive Entrepreneurial Climate
Tourism Entrepreneurship & Social Capital
• Tourism entrepreneurship contributes to job creation and regional development
• Social capital is required in developing/remote destinations
• Requires creation, maintenance and extension of relationships
• Social capital is embedded in the degree of collaboration of those involved in entrepreneurial venture