The role of entrepreneurial policies in developing rural tourism entrepreneurship in South Africa

Abstract: Since 1994, the South African Government has introduced numerous entrepreneurial policies and support institutions aimed at developing entrepreneurship, which is viewed as a solution for the country’s socio-economic problems of poverty, unemployment and inequality. However, because of a limited understanding of the dynamics of rural entrepreneurship, Government efforts to uplift rural entrepreneurs have not been effective. Challenges relating to lack of appropriate business infrastructure, barriers to enter new markets, lack of industry mentors and networking opportunities, stiff competition, high cost of regulatory compliance and barriers in accessing bank loans continue to undermine business viability in rural areas. The problem that the research addresses is to understand the factors that explain the low profitability, competitiveness and survival rates of rural micro-lodging enterprises, as a specific category of entrepreneurial enterprise, despite the context of increasing tourism generally in South Africa and a consequent hypothesised positive impact on business prospects. Using a qualitative case study design; in-depth interviews with 15 lodging business owners and officials from four government support institutions were conducted. Atlas.ti was used to analyse data. The study found that the main users and beneficiaries of these policies and the support institutions are urban, literate and well-established entrepreneurs, while the rural entrepreneurs most in need, and in many cases, the actual object of policies, do not access the support due to lack of knowledge or information, or cannot due to distance and cost. Because of policy-makers’ lack of knowledge and information, rural entrepreneurs are subjected to a one-size-fits-all policy implementation approach which is counter-effective. The study recommends adapting policy implementation to suit the unique local conditions of rural communities. The paper conclude by proposing policy interventions imperative in developing entrepreneurship in the rural areas