The Influence of Business Incubation Services on The Performance of SMEs in The Tourism Industry

Abstract

Research studies by academics, financial experts and development economists have all harped on the imperativeness of promoting the establishment of Small and Medium Enterprises (SMEs) as an instrument for the economic development and engine of growth, as well as employment generation. However, various countries employ various strategies in promoting SMEs. One such strategy is the Business Incubation Strategy, where potential entrepreneurs which cut across the broad spectrum of the economic sector, from the production of goods and services like tourism; are attached to well established businesses to learn and imbibe the rudiment of the business for a specified period. They are then given financial and logistics support for their start-ups; having learned the nitty-gritty of the trade. This paper is conceived to look at the influence of Business Incubation Services as a strategy in driving the performance of SMEs in the Tourism Industry in South Africa.

Keywords

• smes
• strategy
• business incubation
• tourism
• performance
• influence