Tourism Entrepreneurship and Innovation

This assignment provides an overview of tourism entrepreneurship and innovation, highlighting the importance of place identity, self-efficacy, and gender in tourism entrepreneurship performance. It also discusses the role of individual entrepreneurs in developing competitiveness for rural tourism destinations and the impact of social media on heritage tourism entrepreneurship. Additionally, it explores the challenges and opportunities of tourism entrepreneurship, including the use of information and communication technologies (ICTs) in tourism development.

Travel and Tourism
Entrepreneur

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
1.1 Skills needed for successful entrepreneurship......................................................................1
1.2 Self-appraisal that identifies strengths and weaknesses and strategies for development
benchmarked to successful entrepreneur....................................................................................2
TASK 2............................................................................................................................................4
2.1 Development of an entrepreneurial enterprise......................................................................4
2.2 Factors that have led to the success of an enterprise.............................................................4
TASK 3............................................................................................................................................5
3.1 Sources of finance and support available to enterprises in travel and tourism sector...........5
3.2 Potential for success of a concept for an enterprise in a travel and tourism.........................7
3.3 Persuasive business start-up plan..........................................................................................8
CONCLUSION................................................................................................................................9
REFERENCES..............................................................................................................................10

INTRODUCTION
Tourism is an activity of individual which travelling as well as staying in places outside
their environment for business, leisures and for some of the other purposes. In contemporary
world, travel and tourism is regarded as best business. Enhancing requirement of the travelling
and tourism made this business successful because the people from different country are travel or
arrange their tours (Brooker and Joppe, 2014). In context to this, tourism is most developing
business and generate high revenue in this mention report will be discuss about skills required
for the successful entrepreneur. Sources of finance and also support the available enterprises in
travel and tourism industry will be mention under given assignment. There will be discussion
about development of entrepreneurial enterprises.
TASK 1
1.1 Skills needed for successful entrepreneurship
Entrepreneurship refers to process of determining as well as commencing new business
venture. An entrepreneur is a person that organise as well as operate business in an effective
manner. It is necessary that an entrepreneur should have ability to lead business in a proper
direction. An entrepreneur should have capability to do the better or proper panning and also
adopt changing environment. There are some skills given which require for the successful
entrepreneur:
Communication skills- In an organisation, communication is very important at every
level. If the communication will not be proper then it will develop negative effect on business. It
is essential that an entrepreneur should have effective communication skills so that it can
communicate with its employees, consumers and other stakeholders (Carlisle and et. al., 2013).
Team player- Team work is necessary in an organisation because it develops positive
impact on business. It is essential that an entrepreneur should be a team player and motivate the
employee to work in a team. It will help in enhance motivation level of employees.
Creative thinking- Entrepreneurs are known for the creative thinking means think out of
the box. In this, creative thinking can take capable and smart business owner to other level of
success. By thinking creative, entrepreneur can make its business better and also can make its
services and products better which can attract large number of consumers.
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Leadership- An entrepreneur have evangelistic quality and they have better ideas and
skilled to getting purchase from staff members and investors. Entrepreneur should have ability to
guide the staff members so that it can guide or lead employees in a better manner.
Risk taking- Entrepreneurs seem more comfortable with the risk as comparison to other
leaders of business. It is important that entrepreneur should have the ability to deal with the risk
and find to better or effective solution to get over from the risk (Glavas and Mathews, 2014).
Self confidence- It is a necessary skills that an entrepreneur should have. It is necessary
that an entrepreneur should be confident about its work and also have capability to motivate the
other people. If a person will be self confident then it will help in doing the work in a proper or
significant manner.
Managerial skills- These are ability and knowledge of person in managerial position in
order to fulfil particular management tasks or activities. The managerial skills are helpful for
entrepreneur to manage work, activities and tasks in a proper manner.
1.2 Self-appraisal that identifies strengths and weaknesses and strategies for development
benchmarked to successful entrepreneur
Self appraisal is also known as self- evaluation and it is opportunity to reflect on things
which can perform in better manner. If a person is beginning or leading an organisation, then it
will be beneficial or effective to know about outside and inside of things. In context to this, I
have begin new travel and tourism organisation that will offer different business and holiday
packages to people. Firm will take care need of international and domestic tourists and also help
them by providing the better destination places on the basis of their preferences and wants. Idea
behind start this firm is to develop travel company that helps in stand out other organisation
under travel and tourism sector. So, as an entrepreneur, I need to assess my skills so from this I
can examine my own weaknesses and strengths. Self appraisal of strengths and weaknesses
mention below:
Strength
Communication skills- As it is most necessary skills and I posses better communication
skills for successful entrepreneur. With the help of this skill, I can deal with all type of human
resources fin order to managing business activities in an easy manner. In context to this, I have
an ability to communicate in a better manner that I can easily develop the strong relationship
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with people. Effective communication skills will provide me to give benefit of gaining better
resources.
Self confidence- I have this skills as I am an entrepreneur. I have full confidence in my
abilities to better success and also deal with the challenges. My self- confidence will help me
towards right direct and also assess me in order to gaining respect or popularity between
subordinates.
Team player- Since, I have done my job as leader in company and I am very confident
about this skill. It is an important skill that required by an entrepreneur. In existing demanding
environment, an individual can not be succeed without developing a team. Involvement in a team
is necessary to enhance their motivation.
Creativity- In order to start a business, it is necessary skill that derives me towards
development of new services and products. It is helpful in make improvement as well as
innovation in the exiting goods. For new venture in travel and tourism sector, this skills will help
me.
Weaknesses
Managerial skills- I am including this skill as my weaknesses because I do not have
more experience under this area. It consists skills related to organising, planning, staffing,
directing and controlling. These all are the main functions of company and an entrepreneur
should be excel in them. Managerial skills included many necessary aspects that is planning for
attaining objectives and also assuring performance on the basis of plan.
Leader- An Entrepreneur is needed to lead itself by self- motivation and also should have
better skills to guide or lead the other people. In this, I found and have assessed that I do not have
this skill and also require to work in this. In order to success my business, it is most important
skill.
Strategies for development benchmarked to successful entrepreneur
 In order to make improvement in leadership skill, I need to take accountability. It is
necessary to struggle with inner gear and aloes ready to take the responsibilities.
 Through joining personality development sessions, I can gain the managerial skills and
also lead to manage the things or activities in a proper manner.
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TASK 2
2.1 Development of an entrepreneurial enterprise
Entrepreneurial development refers to process of make improvement in knowledge and
skills of entrepreneurs by different training programmes. It is related with developing the
entrepreneurial traits and skills. In context to this, travel and tourism industry is one of the fastest
developing sector of decade. Under this, one of most famous entrepreneur that established its
company name TravelEdge in a better manner and her name is Sue Hollis. She developed her
entrepreneurship because she have all qualities which should be in a successful entrepreneur
(Holden and Fennell, 2012). This company provides wide range of services to consumers on the
basis of their services and needs. There are different development strategy of TravelEdge
mention below:
 Before doing the any activities or tasks, Sue Hollis develop a plan and look towards the
opportunities in the travel and tourism sector. With the help of planning, she perform her
activities or tasks in a systemic manner.
 Her another strategy is to development for entry in market. With the help of developing
an endeavour, company can compete with its strong competitors at market place.
 She always try to develop and maintain strong relationship with herconsumers and staff
members. She never make differentiate with its employees and also treat them equally.
Through this, all employees are work toward attaining the objectives of firm and on the
other hand, consumers are loyal towards firm and also retain for long period of time.
 Sue Hollis has innovation quality and she tries to execute her innovation ideas on her
each new project of business. In context to take any fare decisions, she shares her views
and thoughts with her staff members.
 She makes plan related to marketing strategy. In order to set up the new business, it is
more important to develop the effective marketing related strategy. In addition to this,
there is a need to an entrepreneur to make potential consumers which are aware about the
services of firm which it offering to them (Hallak, Assaker and Lee, 2015).
2.2 Factors that have led to the success of an enterprise
There are some main factors for success of company are communication and managerial
skills. Both skills are helpful for an entrepreneur to deal with the employees in a significant and
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effective manner. Under this, Sue Hollis establish TravelEdge company and she begin her own
business after working for British Airways and Qantas. She is a passionate and hard working
person towards her business. After examining skills of entrepreneur, different factors are mention
below:
 She has managerial skills and also very confident towards her work. She began her
business with the better planning and also develop effective stratifies which have helps
her to attaining objectives in proper period of time (Jaafar and Rasoolimanesh, 2015).
Her mission and vision towards objectives never failed and she is very self- motivated
person. Before doing any this, she always make planning as well as organising so that
every task can perform or done in a right direction on the basis of developed plan. The
main focus of Sue Hollis on attaining the aims and objectives and also involved herself
with human resources that has direct and indirect affect on business. In context to this, he
has a better planner, organiser, leader and also controller. She has expertise knowledge
about her business operation and activities in a proper manner.
 Another factor is that he has professional skills and abilities. In this, professional skills
of an entrepreneur is very necessary for company. In context to this, committed as well
as professional approach towards the consumers is a main success key. For maintain the
better relations with the other business alliance and also consumers, entrepreneur has the
better professional skills. The TravelEdge company provides the effective quality of
services to the consumers so that they can enjoy their holidays or vacations. Sue Hollis
have better ownership sense along with possess better communication skills.
TASK 3
3.1 Sources of finance and support available to enterprises in travel and tourism sector
The travel and tourism entrepreneur have to face lots of problem for finding the
appropriate sources to start the business (Komppula, 2014). The different sources of funding
available for the entrepreneur are as below:
Personal Savings
This is the most easy and quick source of funding available for the entrepreneur. It is the
best way to collect capital for the business. The owner of the company invest the saved personal
money in the business. As there is no time period to payback the amount. This bring positive
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attitude to an entrepreneur's saving habit and capability of taking risk. It is also called seed
capital. As, entrepreneur in travel and tourism can help themselves from the saved amount.
Family and Friends
In this entrepreneur in travel and tourism ask funding from family and friends. It is also
the most easiest way of collecting money for business. This doesn't requires more formalities and
easily available. Such type of borrowing does not requires payback period (Padurean, Nica and
Nistoreanu, 2014). The disadvantages of this source is that in case of failure of business, the
funds lost which creates relationship at stake.
Bank loan
Banks are called conservative lenders. In order to get loan from this source, they requires
collateral security against borrowing. In this funding, there are lots of paperwork, payback period
with interest amount. Due to insufficient assets, the entrepreneur in travel and tourism fails for
source. If sufficient amount is available in bank then they easily get loan. As such loans are short
term in nature.
Venture Investors
It is the common type of funds for entrepreneurs who have desired and potential for the
growth of business. In this partial ownership is with funded business. This is the type of
retirement funds. The corporate are large fund venture who provides loans to new business
holding some control over that company.
Overdraft Facility
In this, the account holder can withdrawn more amount of money than its saving account.
It is the type of credit agreement lies between account holder and bank or financial institution. It
helps entrepreneur in travel and tourism to collect short term money (Schegg and Stangl, 2017).
Angel Investors
The successful entrepreneur holding extra amount of money and who are ready to take
risk is called angel investors. They provide funds to the new businessman. It is very quick and
easy type of source as comparison to other corporate ventures.
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3.2 Potential for success of a concept for an enterprise in a travel and tourism
Potential of company can be analyse through strengths, weaknesses, threats, opportunities
etc. With the help of conducting SWOT analysis, firm can analysis its business in a better
manner.
Niche travel and tourism business concept- In the tourism, niche is specialised cornet of
tourism market that is usually developed around particular needs as well as interest of visitors. In
this, main focus of company is on the particular product or services of tourism in order to meet
requirements of specific market segment. It is a primary responsibility of company to fulfil or
satisfy needs and demands of consumers in a significant manner.
Product/service characteristics- In the starting of business, there will be four main
packages provided to consumers such as mountain biking up, Costa Rica, Water rafting and
skiing trips (Sharpley and Stone, 2012).
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 better opp 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.
Operational plan- It provides clear description of department and team that will
contribute to attain goals and objectives of firm in a proper manner (Smith and Puczkó, 2014). It
consists plan related to the business operation of firm that consists detailed analysis of personnel
in regards to successful running of business enterprise. It consist standard of services which are
provided to consumers.
Financial projection- It is forecast of the future expenses as well as revenues. It will
account for historical data and also will consist prediction of external factors of market. With the
help of cash- flow analysis, company can make the financial projections.
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
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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
3.3 Persuasive business start-up plan
There are various approaches which should be take into consideration while establishing
any business. The most important are planning and strategies. The objective should be very clear
and accordingly planning should be made. Business plan includes SWOT, market analysis, target
market, marketing mix, competitor bearing. The following points should be considered while
making business plan.
Objectives
It is very important to make clear objective of company before initiating planning. For
example new start-up is related with telecommunication and name of company is “Telecom”.
The main objective is to become the leader of mobile company in United kingdom market
(Standing, Tang-Taye and Boyer, 2014).
Market Analysis
It is the process of analysing market after clearing objectives. The main tool are PESTEL
and Porter five force model which helps in analysing market. All these points provide help to
make proper strategy. The start-up company must be aware about it opportunities and
competitors. Here Telecom faced various chances to expand its market in different parts of
United Kingdom. As market possess large as well as small organisation but it is in the hand of
organisation to provide good services of telecommunication for customers.
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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 (Surugiu and Surugiu, 2015). It is
the responsibility to win the customer's heart and achieve success by the organisation.
Innovative ideas
The most important quality of the businessman is to possess innovative ideas in order to
start-up new company. But the ideas should relate to the strategy. The main reason behind this
approach is to reach objective. It helps in increasing profit and business of the start-up. Here,
Telecom provide online service to the customer which has create impact on market. Today's era
is technological world so people prefer innovation, creativity.
Differentiation
This is an important approach in which the company should be different from its
competitors. Telecom is different from other because of two reasons. They are:
 Online services can be avail easily.
 Facility to solve instant query of the user (Theobald, 2012).
CONCLUSION
It has been concluded from above mention report that it has been concluded that
entrepreneurship is difficult process that needs more initiatives and decision from entrepreneur.
For attaining this, an individual needs particular skills that help in success for develop new
enterprise. Various sources of funds such as personal saving. Bank loan, overdraft facility etc.
has been discussed under this report. There has been studied about development of the
entrepreneurial enterprise.
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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:
Changing patterns of tourism entrepreneurship. In Small firms in tourism(pp. 109-124).
Routledge.
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Online
The Top Skills Every Entrepreneur Needs, 2018. [Online]. Available through:
<https://www.forbes.com/sites/gradsoflife/2018/09/25/finding-an-industry-you-can-call-
home/1>.
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