Tourism Entrepreneurship and Innovation Analysis

The provided document is a comprehensive analysis of tourism entrepreneurship, focusing on the development of competitiveness for rural tourism destinations. It includes a review of relevant literature on tourism entrepreneurship and innovation, as well as case studies highlighting the importance of individual entrepreneurs in this field. The document also explores the impact of information and communication technologies (ICTs) on tourism entrepreneurship and the role of social enterprises in sustainable tourism practices.

Travel and Tourism
Entrepreneur
Table of Contents

INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
A) Discuss the entrepreneurial traits and skills required to be a successful travel and tourism
entrepreneur.................................................................................................................................1
B) Self-appraisal of entrepreneurial traits and skills and identification of strengths and
weaknesses for development benchmark to be successful..........................................................2
TASK 2............................................................................................................................................5
A) A successful travel & tourism entrepreneur...........................................................................5
Factors that have led to the success of an enterprise...................................................................6
TASK 3............................................................................................................................................6
A) Sources of finance and support available to you for the proposed project.............................6
B) Business plan with a market assessment, business analysis and cash-flow analysis..............7
C) Persuasive business start-up plan............................................................................................9
CONCLUSION..............................................................................................................................10
REFERENCES..............................................................................................................................12

INTRODUCTION
Travel can be defined as an action in which a business person moves from one place to
another for different purposes. Here, it can be said that travel and tourism business industry has a
prizewinning element that is helping companies that are dealing in this sector in earning great
profit margins (Brooker and Joppe, 2014). Developing attractive packages, offering clients with
different services related to hospitality like accommodation, food and other related services
comes under this business sector which is aiding firms in generating high revenue. Present report
will focus on skills or traits that are needed by a person to become a successful entrepreneur.
Apart from this, assignment will also keep its focus on self-appraisal of an individual that will
direct put light on both strengths and weaknesses for an individual. Away with this, report will
also be enclosed with sources of finance and support available to enterprises. Lastly, assessment
will include persuasive business start-up plan.
TASK 1
A) Discuss the entrepreneurial traits and skills required to be a successful travel and tourism
entrepreneur
Entrepreneurship defined as a process which helps an entrepreneur in making decisions
related to begin a brand-new venture. Apart from this, entrepreneurs are said to be the
individuals which organises or set goals like earning profit margins through offering customers
or clients with what they are looking for. If it is talked about travel and tourism sector, being an
entrepreneur is not an easy thing (Carlisle and et. al., 2013), it is required for them to make
effective determinations and develop themselves with learning processes so that they may
improve their own decision making processes. It is also necessary for individual (entrepreneur)
to keep on focusing over environment as well of travel and tourism sector because it is carrying a
rapid changing nature. In present context, there are a number of skills which are needed for an
entrepreneur to become successful in travel and tourism sector and these are:
Communication Skills - In travel and tourism business sector, effective communication
skill is needed for an entrepreneur at the time of starting up or running a brand new business in
travel and tourism business sector (The Top Skills Every Entrepreneur Needs, 2018). It is being
analysed that, if communication skills are not appropriate with an individual, this may put direct
impact upon the operations or reputation of the company because for a start up, investment is
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required and an entrepreneur who is not skilled enough in communication may not be able to
influence stakeholders.
Team player- Another crucial skill which is needed for the entrepreneur in travel and
tourism business sector as it mainly develops a healthy impact upon whole start up. It is being
found that, this skill (team player) if an enterpriser is having, then this may lead employees to
feel motivated and enthusiastic towards work allotted by the entrepreneur.
Creative thinking- This skill is pretty much required for the entrepreneur to become
successful, as modern world is filled with innovative minds among travel and tourism sector,
creative thinking may lead an entrepreneur to raise himself where he can easily generate much
higher profit margins from rivals with creative mind (Glavas and Mathews, 2014).
Leadership- An entrepreneur without this skill cannot be successful in travel and tourism
sector. This quality may easily raise a new start up in raising themselves to an all new level. With
the help of this skill, entrepreneur may easily lead whole new start up to an upgraded level where
they may easily generate revenues with an ease. This skill can also aid entrepreneur in assigning
tasks to employees and so on.
Risk taking- This is being considered as topmost skill which is required for an
entrepreneur to have because taking chances in business can only lead an entrepreneur to become
a successful enterpriser in travel and tourism sector. Taking right risk at correct time involves
fear in starting but when it executes well, an entrepreneur can feel himself to standing at a
different league from its rivals.
Self confidence- Another skill which is needed for the entrepreneur. It is necessary that
an entrepreneur should be confident about its work and also have capability to motivate the other
people. If an entrepreneur will be self confident then it will help in doing the work in a proper or
significant manner in travel and tourism sector.
B) Self-appraisal of entrepreneurial traits and skills and identification of strengths and
weaknesses for development benchmark to be successful
In present business world, it has become vital for every single individual to become
effective through overcoming all over weaknesses right on time (Hall and et. al., 2012). Here, it
is being found that self appraisal is a technique which could lead an individual in developing
themselves or learning new skills through identifying strengths and weaknesses. In travel and
tourism business sector, a start up requires deep research related to visitors needs and
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requirements related to places that they want to visit. In present business scenario, I have planned
for a start up in travel and tourism sector and are going to deliver a number of services to
individuals (visitors, tourists and other business clients) as per the requirements. I have
developed many attracting packages with marginal profit so that at initial level I can easily
develop a proper consumer base for near future.
My brand new tourism agency will keep its focus on needs of both international and
national tourists, current trends and attractive places in all over the world which people likes to
visit. Vision of my travel agency is to become one of leading business travel company and help
tourists to visit new places as per their interest through paying low for packages. In context to
this, it is required for me to analyse my own strengths and weaknesses with the help of self
appraisal so that I can easily launch this desired tourist agency and these are mentioned beneath:
Skill / Trait
Rating on
a scale of
1 to 10
Evidence
Communication
skills 9.5
Business world of travel and tourism sector is totally different for
other sectors because clients can be of any country which follows a
totally different mother tongue. As I am looking forward to open a
business In this industry, this skill will help me out in becoming a
successful entrepreneur because communication skills of my own is
good enough which may aid me in influencing others like
investors, client and employees which might take my business to a
new height.
Self confidence 8
Being an entrepreneur, it takes guts to take decisions by own
because if it gets wrong, person may face ample number of issues
related to finance, resources and so on. Thus, self confidence plays
a crucial role in it. I am already filled with confidence which help
me out in making right determinations as per the requirements and
this could be taken as a strength of my own.
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Team player 8
Another skill which could be considered as a strength because, in
past I was doing job in a company, I had the designation of a team
leader. Therefore, handling a team while doing business in travel
and tourism sector will not be a problem for me and it will aid in
making effective plans and targets for employees.
Managerial
skills 5
This could be considered as one of effective skills which an
entrepreneur needs to have (Hallak, Assaker and Lee, 2015). But,
in my case, I have taken this as a major challenge because I am not
good at this because of less experience under this segment.
Organising, planning, staffing, directing and controlling are some
of major functions that are needed within an individual if the
person in posses with this skill.
Leader 4
Entrepreneur in tour and travel sector, is mostly required to have
leadership quality and needs to stay self - motivated so that
guidance can be provided to individuals with whom individual is
going to perform tasks. I am not capable enough and do not have
effective skill related to leadership which affects my performance
while assigning tasks to individuals.
Strategies for development benchmarked to successful entrepreneur
 Being an entrepreneur in travel and tourism sector, if I want to become successful in
travel and tourism sector, then it is required for me to have leadership skill. In order to
possess this, I will take learning classes and attend seminars as well where I can learn
from my seniors considering their visions.
 With the help of personality development training programmes, I may easily develop
skills of my own which will aid me in enhancing my own managerial skills.

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TASK 2
A) A successful travel & tourism entrepreneur
Entrepreneurial development can be defined as a procedure that mainly aid entrepreneurs
in taking right decisions for helps in making start up successful in nature. In modern era, it is
being analysed that, right transformation skills and knowledge can be done with the help of many
training programmes (Holden and Fennell, 2012). A proper training and development session can
help individuals (entrepreneurs) in enhancing their skills. If it is talked about travel and tourism
industry sector which could be considered as one of fastest growing sector of this decade. It has
given ample number of successful entrepreneurs that are running their start-ups with a good
growth rate and helped economy of United Kingdom or of the world to face some positive
impacts like growth of economy, rise in currency value, expansion of travel and tourism sector
and so on. In present context, one of successful American entrepreneur that has been chosen i.e.
Walter Elias Disney formally known as Walt Disney born on December 5, 1901. He was also a
film producer, voice actor and animator. Best known motion-picture company i.e. Walt Disney
Productions was founded by this famous entrepreneur and the co-founder was Roy Disney. Apart
from this, this entrepreneur have always kept his focus on innovation and developed various
cartoon characters like Mickey and Minnie Mouse. Apart from this, successful entrepreneur
(Walt Disney) won around 22 Academy Awards as well during his lifetime, and was the founder
of theme parks Disneyland and Walt Disney World. He has used many development strategies
and these are given beneath:
 Walt Disney and his company has carried a proper generic strategy so that it can gain
heavy competitive advantages which helped in bringing uniqueness among animated
characters and products offered in entertainment, mass media, and amusement park
industries.
 Entrepreneur (Walt Disney) has kept his focus on quality among cartoon characters in
animation industry that helped him in bringing innovative ideas in execution of different
business plans and procedures in much effective and efficient manner. Walt Disney have
also followed democratic leadership style which has helped him in thinking over
suggestions given by his subordinates (Jaafar and Rasoolimanesh, 2015). He also used a
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typical strategy at the time when he started the Disney Productions like he used to take
feedbacks from employees related to plans and strategies that has made by the company
for welfare.Factors that have led to the success of an enterprise
There are ample number of factors that may aid a whole new business to a successful
level and these are: Communication along with social control (managerial) skills. With the help
of these skills, an entrepreneur may easily go through any sort of problems whether it is related
to employees or investors of the company. to deal with the employees in a significant and
effective manner (Komppula, 2014). Apart from this, Walt Disney launched Disney production
in the year of 1923 and its headquarter is in Burbank, California. In initial years, Walt Disney
was curious towards creativity and had poor academic performances. Different factors in present
context are given beneath: Provide a promise, not a product : Walt Disney have kept his/her focus on a strategy of
offering customers with what they are expecting rather than a product or service with
minimal cost investments. This concept created Disney World where Walt Disney
noticed amusement parks and state fairs were always littered and poorly organized, and
the employees were generally rude and resentful. This gave him an idea of Disney and
has kept focus on “The experience” as a key component to increasing the value of
Disney World (Padurean, Nica and Nistoreanu, 2015).
 Always exceed customers’ expectations : One of the reasons the Disney tradition stands
the test of time is that Walt Disney was more critical of his creations than anyone else
could ever possibly be. He was a relentless perfectionist with a keen eye for detail, often
forcing projects to go over budget and past deadline because he was not satisfied with
the finished product.
TASK 3
A) Sources of finance and support available to you for the proposed project.
Travel and tourism entrepreneurs faces ample number of issues which could impact upon
their business deeds and this may lead them to go through various problems when it comes to
generate capital. The different sources of funding available for the entrepreneur are as below:
Personal Savings : It has been analysed that most of entrepreneurs uses this type of
sources of funding in order to launch a new start up or running a new brand business. Personal
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savings are majorly being used by most of entrepreneurs because this is being considered as one
of best mode through which capital for business can easily be generated. Since, entrepreneur of
Travel and Tourism sector requires heavy capital because of rapid changing nature (Schegg and
Stangl, 2017).
Family and Friends : Entrepreneurs in present business world, of travel and tourism
sector requires funding from family and companions. It is additionally the most demanding
method for gathering cash for business as capital. This doesn't need much formalities and
effortlessly accessible. Such sort of borrowing need not any sort of recompense period. The
major drawback in present context is that in any case if entrepreneur do not pay back lender with
the lended money this may create issues among relationships with them.
Bank loan : Banks are being called as loan specialists. With the end goal to get credit
from this source, Bank requires a security amount against the borrowing. In this funding, there
are ample number of paper work takes place, recompense period with a suitable amount based
interests.
Henceforth, these are some of major approaches or sources of funding which majorly
helps entrepreneurs of travel and tourism agencies in generating capital for running a brand new
business in much effective and efficient manner (Sharpley and Stone, 2014).B) Business plan
with a market assessment, business analysis and cash-flow analysis and justify the potential for
success of the proposed Travel and Tourism business
B) Business plan with a market assessment, business analysis and cash-flow analysis
In present time of Travel and the tourism industry segment, is in charge of sorting out
flights at sensible rates, arranging visits for various vacationer goals and so on for sightseers.
Their strategy for success rotates around ventures from an outsider, fund from partners,
obligations and duties of directors, advancing and promoting their own item, regardless of
whether targets were accomplished in the set time frame or not and so forth. The strategy for
success have to likewise incorporate an intensive statistical investigation that shows rivals and
how individual’s business will be not the same as them. The limited time exercises and offer of
the items must be investigated deliberately as choosing right cost for the item is extremely basic
and the exposure given to it alongside the compelling offering designs is an imperative
viewpoint. A Business plan needed to have a number of factors and these are given beneath:
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Market analyse- The main opportunities firm can get to capture market to analyse it in a
better manner. It is necessary for the organisation to noticing drastic expansion in consumers
which they have opt to execute its new thoughts such as easily access air ticket etc. with the help
of opportunities, start- up business can enhance its demand.
Business analysis- It is a practice of enabling modifications in company through
explaining requirement as well as suggestions that help in provide value to the stakeholders.
Business analysis is helpful in know about the strengths, weaknesses, opportunities and threats.
In order to do business analysis, there is a need to company to collect the background
information of business, identify business objectives etc.
Cash- flow analysis- It is helpful in provide information about gross receipts as well as
payments for particular period of time (Solvoll, Alsos and Bulanova, 2015). It examines outflows
and inflows of cash at the particular period of time. Company use the cash flow analysis for the
purpose of financial reporting.
Cash Flow Budget -
PRE LAUNCH CASH BUDGET
Cash Flow
budget
Particulars Jan Feb Mar Apr May June
Cash inflows
Investment 8000
Credit sales 2000 3000 3000 4500 1500 3500
Total inflows 10000 3000 3000 4500 1500 3500
Cash outflows
Fixed :
Equipment’s
2000 2500 1500 2000 1200 1500
Variable : Direct
material
300 300 200 300 150 500
Total outflows 2300 2800 1700 2300 1350 2000
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Net cash flow 7700 200 1300 2200 150 1500
Opening balance 0 7700 7900 9200 11400 11500
closing balance 7700 7900 9200 11400 11550 13000
POST LAUNCH CASH BUDGET
Particulars Jan Feb Mar Apr May June
Cash inflows
Investment 8000
Credit sales 1200 2000 7500 3000 5000 6500
Total inflows 9200 2000 7500 3000 5000 6500
Cash outflows
Fixed :
Equipment’s
2500 1200 1500 2500 1100 1500
Variable : Direct
material
350 300 250 150 100 500
Total outflows 2850 1500 1750 2650 1200 2000
Net cash flow 6350 500 5750 350 3800 4500
Opening balance 0 6350 5850 11600 11950 15750
closing balance 6350 5850 11600 11950 15750 20250
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C) Persuasive business start-up plan
Business plan majorly consists with a number of approaches which may easily help
entrepreneurs of travel and tourism sector in making overall business a successful one. This may
include SWOT, market analysis, target market, marketing mix, competitor bearing and so on.
The following points should be considered while making business plan.
Objectives
This is being considered as one of a major element of a business plan because every
single plan requires an objective to accomplish. This could be understood with a good example:
A new start-up of telecommunication consists with a name “Telecom”. Objective of this
organisation is to expand its business into two countries and with a target of customers they need
to reach are 300,000 in a year.
Market Analysis
In present context, main tool is PESTEL and Porter five force model that may aid a
business company in making themselves more approachable to customers with the help of
external market’s analysis. Here Telecom faced various chances to expand its market in different
parts of United Kingdom.
Strategy
The planned and made strategy helps in beating competitors available in market. Here the
strategy should be focus on the employees and their customers. It is the responsibility to win the
customer's heart and achieve success by the organisation.
Innovative ideas
The most vital nature of the entrepreneur is to have imaginative thoughts with the end
goal to boosting up a whole new organization. In any case, the thoughts should identify with the
system. The primary explanation for this methodology is to achieve objective. It helps in
expanding benefit and business of the start-up. Here, Telecom give online support of the client
which has make affect on market. The present period is mechanical world so individuals lean
toward development, inventiveness and so on (Surugiu and Surugiu, 2015).
CONCLUSION
With the help of above mentioned report, it is being summarised that entrepreneurs with
specific and effective traits and skills can help in becoming a successful business person. Along
with this, an individual requires to have a number of skills which could lead both business
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company and entrepreneurs in reaching to a whole new height. On the other hand, different types
of sources of finance are given beneath: Personal saving, Bank loan, Overdraft facility and so on
can help entrepreneur in raising themselves to an all new level.
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REFERENCES
Books & Journals
Brooker, E. and Joppe, M., 2014. Developing a tourism innovation typology: Leveraging liminal
insights. Journal of Travel Research. 53(4). pp.500-508.
Carlisle, S. and et. al., 2013. Supporting innovation for tourism development through multi-
stakeholder approaches: Experiences from Africa. Tourism Management. 35. pp.59-69.
Glavas, C. and Mathews, S., 2014. How international entrepreneurship characteristics influence
Internet capabilities for the international business processes of the firm. International
Business Review. 23(1). pp.228-245.
Hall, J. and et. al., 2012. Entrepreneurship and innovation at the base of the pyramid: a recipe for
inclusive growth or social exclusion?. Journal of Management Studies. 49(4). pp.785-
812.
Hallak, R., Assaker, G. and Lee, C., 2015. Tourism entrepreneurship performance: The effects of
place identity, self-efficacy, and gender. Journal of Travel research. 54(1). pp.36-51.
Holden, A. and Fennell, D.A. Eds., 2012. The Routledge handbook of tourism and the
environment. Routledge.
Jaafar, M. and Rasoolimanesh, S.M., 2015. Tourism growth and entrepreneurship: Empirical
analysis of development of rural highlands. Tourism Management Perspectives. 14.
pp.17-24.
Komppula, R., 2014. The role of individual entrepreneurs in the development of competitiveness
for a rural tourism destination–A case study. Tourism Management. 40. pp.361-371.
Padurean, M.A., Nica, A.M. and Nistoreanu, P., 2015. Entrepreneurship in tourism and financing
through the Regional Operational Programme. Amfiteatru Economic Journal. 17(38).
pp.180-194.
Schegg, R. and Stangl, B., 2017, January. Information and Communication Technologies in
Tourism 2017. In Proceedings of the International Conference in Rome, Italy.
Sharpley, R. and Stone, P. eds., 2014. Contemporary tourist experience: Concepts and
consequences. Routledge.
Smith, M. and Puczkó, L., 2014. Health, tourism and hospitality: Spas, wellness and medical
travel. Routledge.
Solvoll, S., Alsos, G.A. and Bulanova, O., 2015. Tourism entrepreneurship–Review and future
directions. Scandinavian Journal of Hospitality and Tourism. 15(sup1). pp.120-137.
Standing, C., Tang-Taye, J.P. and Boyer, M., 2014. The impact of the Internet in travel and
tourism: A research review 2001–2010. Journal of Travel & Tourism Marketing. 31(1).
pp.82-113.
Surugiu, M.R. and Surugiu, C., 2015. Heritage tourism entrepreneurship and social media:
opportunities and challenges. Procedia-Social and Behavioral Sciences. 188. pp.74-81.
Theobald, W.F. ed., 2012. Global tourism. Routledge.
Von der Weppen, J. and Cochrane, J., 2012. Social enterprises in tourism: An exploratory study
of operational models and success factors. Journal of Sustainable Tourism. 20(3).
pp.497-511.
Williams, A.M. and Shaw, G., 2013. From lifestyle consumption to lifestyle production:
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Routledge.
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