WTM Africa 2023 panel looks at support for SMEs in tourism industry

Drive, skills and mentorship will assist small business growth, say experts
2023-04-05
/
/ New Delhi
WTM Africa 2023 panel looks at support for SMEs in tourism industry

Of the 11 million jobs by 2030, as laid out by the National Development Plan in South Africa, it is estimated that nine million of those jobs are expected from SMMEs

A key session on Tuesday at the ongoing WTM Africa 2023 in Cape Town focussed on the kind of institutional and governmental support available to SMEs in the tourism industry in Africa.
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As global tourism industry tries to recover to the pre-pandemic status, one of the key issues to be addressed is rebuilding the small businesses that form backbone of the tourism industry not just in Africa, but around the world.

This was one of the main issues that was addressed on Tuesday, Day 2 of the ongoing WTM Africa 2023 at Cape Town. The panel discussing this key issue comprised Septi Bukula, Founder and Director of Seeza Tourism Growth Network, Tshepo Matlou, Business Coach, Sobona and Velma Corcoran, Regional Lead, Middle East Africa at Airbnb. The panel was moderated Mandisa Magwaxaza, Founder and Owner of Molo Mhambi Relations and Womxn Xplore.

According to a press statement, in the session, Bukula explained that a small business, as per formal government guidelines, is defined by size of revenue, number of people employed, and gross assets. He did note that there are companies that do not employ a lot of people but may be high revenue, and whilst government does place emphasis on employment, this is not overlooked.

“In terms of funding opportunities, all these factors are taken into account. A bank would prioritise asset base and revenue, whilst venture capitalists are looking at future growth – a unicorn in the making,” Bukula said.

“A healthy definition of big business means how we operate in a community, how we add value in terms of the supply chain, and the sustainability of the business. We need to build value within our communities. Enterprise development in townships is successful because they add value to others, for example, a guest house can benefit tours and restaurants,” added Matlou.

Building on from the value chain theory, Corcoran raised the point that of the 11 million jobs by 2030, as laid out by the National Development Plan in South Africa, it is estimated that nine million of those jobs are expected from SMMEs, and within that, two million will be from the informal sector which is often overlooked.

“Government tries to formalise rather than enable,” says Corcoran. Her second key point highlighted private/public partnerships, such as that of Airbnb in the Waterberg. Here Airbnb worked with the local municipality to develop potential tourism experiences through the Airbnb Entrepreneurship Academy. Other partners were brought on board in order to support and enable entrepreneurs within the region. “Our digital campaign shines a spotlight on both the area and the hosts to increase demand. We would love to roll out this model in other areas. What made it work was the willingness of parties to come together for the betterment of the area, so solutions were found,” she said.

Magwaxaza put the challenge forward of how the businesses move away from traditional funding, and asked how government can be more creative and efficient in the support of small businesses. Bukula acknowledged that information is scattered and inefficient and that people do not take advantage of available support because they don’t know how to find it. He raised the point that banks also have programmes and are very supportive of SMMEs.

Matlou encouraged individual support of potential through access, skills development and mentorship. “We need to have affordable technologies online and private/public initiatives to provide other tools beyond training. We need to give people the skills to run a business and provide the marketplace,” he said.

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