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Black Economic Empowerment: Procurement and Investment – The case of Small to medium Professional Conference Organisers in Durban Durban University of 

TechnologyB‐Tech

Tourism Management

1

2

INTRODUCTION TO THE STUDY3

Department of Tourism

Government Policy

4

5

Explain reasons for the mismatch

Make suitable recommendations to harmonise supply and demand

6

Identify barriers and challenges

Propose sustainable solutions 

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LITERATURE REVIEW8

National White Papers

DTI  SMEs Review

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RESEARCH METHODOLOGY10

Study AreaDurban, South Africa

Study TypeDescriptive

Sampling TechniquesPCO samples – Snowballing  (18)Govt. agencies – Judgement  (12) 

Survey TechniquesPCOs – structured self administered questionnaires

Govt. agencies – interviewsInformation and Consent letters

36 days survey period

Data AnalysisThematic Content Analysis

Microsoft Excel11

RESULTS AND DISCUSSION12

The PCOs are catered for by the available supply of government support services

All types

Only Back owned

All but with preferentialtreatment to Black owned

50%

17%

33%

Figure 1: Targeted support beneficiaries 13

0

22.22

50

11.11

16.67

0

16.67

44.44

22.22

16.67

0

38.89

22.22

22.22

16.67

0 10 20 30 40 50 60

1

2

3

4

5

Percentage %

Compe

titive strength  1(weakest) ‐

5(strongest)

training

prefferredprocurement

financialsupport

Figure 2: Extent of the need for support services in order to survive in current economic climatePCO DEMAND: 14

Inefficiencies exist in the support program design that disable effective supply of support services 

0

10

20

30

40

50

60

70

Poor research Centralised decision making No Impact Assessment studies

Percen

tage con

tribution

33.33%

58.33%

16.67%

Figure 3: Flaws in the support program design

15

22%

78%

YesNo

The majority of the PCOs expressed an ignorance towards the support services available to them 

Figure 4: PCO knowledge about support services  available to them 16

CONCLUSIONS AND RECOMMENDATIONS

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Poor synchronisation of demand and supply

Support services structural design inefficiencies• Centralised support structures• Absence of impact assessments• Poor research activities

limited knowledge of support services• Failure to properly direct demand 

Government

supply PCOdemand

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Govt. adequate supply PCO adequate demand

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• Development of a Local Service Centre– National White Paper on Small Businesses

(South Africa 1995: 46)

Major industry players

Other MICE service providers

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Synchronisation of demand and supply of support services between the government support service providers an the PCOs 

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22

SME development after use of support

services

Framework for

support Impact 

Assessmentactivities

23

References

• Rogerson, C.M. 2006. The market development approach to SMME development: implications for local government in South Africa. Urban Forum (Online).17(1): 54-78. Available: http://link.springer.com/article/10.1007/BF02681258 (Accessed 10 April 2014)

• Rogerson, C.M. 2005. Unpacking tourism SMMEs in South Africa: structure, support needs and policy response. Development Southern Africa (online), 22 (5): 623-642. Available: http://dx.doi.org/10.1080/03768350500364224 (Accessed 14 April 2014)

• Mshenga, P.M. and Richardson, R.B. 2012. Micro and small enterprise participation in tourism in coastal Kenya. Small business economics (online), 41 (3): 667-681. Available: http://link.springer.com/article/10.1007/s11187-012-9449-5(Accessed 11 April 2014)

• Thomas, R., Shaw, G., and Page, S. J. 2011. Understanding small firms in tourism: a perspective on research trends and challenges. Progress in tourism management (online), 32 (963 -976). Available: http://www.sciencedirect.com/science/article/pii/S0261517711000471 (Accessed 14 April 2014).

• South Africa. Department of Trade and Industry. 2004. Review of 10 years of small business support in South Africa 1994-2004. Entrepreneurial empowerment, job creation and equity facilitated: An analysis of the evolution of public sector support for small enterprises in South Africa. Government Printer.

• South Africa. Department of Trade and Industry. 2008. The Department of Trade and Industry Annual Review of Small Business Support in South Africa. Government Printer.

• South Africa. 1995. National White Paper on Small Businesses. Cape Town. Department of Trade and Industry.

• South Africa. Department of Tourism. 2011. National tourism sector strategy. Pretoria: Government Printer. 24