Constraints of young prospective tourism entrepreneurs in the semi-rural areas in KwaZulu-Natal

Abstract

Tourism is increasingly regarded as a potential catalyst for rural economic development. As it stands, the global economic situation and the progress of youth entrepreneurship in developing economies are leaving a lot to be desired. Cultural diversity, level of education, dire market standards, and grim socio-political environments are some of the factors that should be taken into consideration when aiming to create an enabling setting that will open tourism entrepreneurship opportunities for a developing country like South African. This study’s objectives are the investigation of the limitations that prevent young people from pursuing tourism entrepreneurial activities in a semi-rural area. This research was conducted in the Umdoni Local Municipal area, a semi-rural area in KwaZulu-Natal, South Africa. A sample size of 126 respondents from the selected semi-rural area was selected to participate in this study. This was achieved using a snowball sampling technique and the results were analysed using Statistical Package for Social Sciences. The study highlights that inability to secure financial support is one of the primary constraints for the setting-up of a new business. The study also found that youth support structures, such as National Youth Development Agency and the Department of Trade and Industry, that should stimulate and develop tourism entrepreneurship for the youth in the Umdoni Local Municipality area, are not accessible. This research recommends that finance for youth entrepreneurship initiatives in the tourism sector be introduced by financial institutions and access should not be tortuous. Government policies should be examined in terms of their effectiveness on entrepreneurship establishment, as well as their regulatory burden on new start-ups.