Tourism Entrepreneurship Skills & Success

This assignment focuses on examining the crucial skills required for thriving as a tourism entrepreneur. It delves into various theoretical frameworks, including social entrepreneurship, funds of identity, and contemporary strategy analysis, to understand how these concepts apply to the tourism sector. The assignment also encourages critical analysis of case studies, exploring the role of individual entrepreneurs in developing rural tourism destinations and the impact of factors like place identity, self-efficacy, and gender on entrepreneurial performance. Furthermore, it investigates the influence of cost-benefit analysis, sustainable development, and destination marketing strategies on tourism entrepreneurship success.

Travel and Tourism
Entrepreneur

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
1.1 Skills required for successful entrepreneurship....................................................................1
1.2 Self appraisal to identify strengths and weaknesses and Strategies for successful
entrepreneurship..........................................................................................................................2
TASK 2............................................................................................................................................4
2.1 Analysis for entrepreneurial enterprise development...........................................................4
2.2 Factors that led to the success of an enterprise.....................................................................5
TASK 3............................................................................................................................................6
3.1 Sources of Finance and support in the travel and tourism sector..........................................6
3.2 B) Develop a 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......................................................................................................................................7
3.3 Persuasive business plan for the Travel and Tourism start-up project..................................8
CONCLUSION................................................................................................................................9
REFERENCES..............................................................................................................................10

INTRODUCTION
The objective of the study is to discover various capabilities required for successful
entrepreneurship. It is the process of designing, organising and managing new enterprise
activities with the objective of making profits. Entrepreneurs are those who run the company. To
start any enterprise risk is always associated with it. Entrepreneur is required to have abilities of
taking risks and facing challenges (Komppula, 2014). Good management and communication
skills can lead business to get successful. To set up new travel and Tourism Company, I will
analyse capabilities of the Virgin Galaxy tourism company's entrepreneur. Business plan and
cost analysis helps in reducing failures in commercial enterprise. Interpersonal skills are required
for entrepreneurship that constitutes interaction with team and communication with other staff
members. Creativity makes an organisation unique from others. Capital investment is major
issue in set up any venture. Several sources of finance will be discovered. Market assessment of
travel and tourism industry will be conducted using PESTLE analysis.
TASK 1
1.1 Skills required for successful entrepreneurship
Development and management of a business firm by taking risks with the objective of
making profits is known as entrepreneurship. Skills are required to be successful entrepreneur.
These are discussed below: Money management abilities: If someone is not able to manage money than he/she
would not be able to manage the organisation. Expenditure should be recorded for every
month. Leadership skills: For successful entrepreneurship leadership skills are necessary. It
involves problem solving techniques to be applied on the occurrence of any problem in
the firm and abilities to take decisions in such situations without affecting business (The
17 Skills Required to Succeed as an Entrepreneur, 2017). Cognitive skills: It is also necessary to have good writingskills and abilities to present
viewpoints. It also essential to have good management capabilities so that enterprise can
be managed effectively. Social skills: Interpersonal skills are required for entrepreneurship that constitutes
interaction with team, effective communication with other staff members and
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shareholders. Motivation should be encouraged by the entrepreneur among its team so
that they can give the best possible inputs into development process of company. Discipline: It is one of the very important skills which are essential to solve issues in the
industry. Discipline helps in planning and strategies required to set up a firm that can be
used to achieve business objective and targets. Competitive Skills: Development of Competitive skills helps venture to grow. Cognitive
skills makes organisation capable to face challenges by the competitors into market. Creativity: Entrepreneur should have creativity in the idea. Productive and constructive
enterprises are successful (Dubey, 2017). Creativity makes a company unique from
others which would ultimately help in its success. Self development skills: An entrepreneur should be capable of managing time and
money. He should also be able to manage resources required for operating an
organisation. It also involves learning from every action of the business. Self Evaluation
should be done so that one's own strengths and weak points can be identified. Confidence: Corporation's efficiency increases when operations are performed with
confidence and contributes in success of it. Appropriate Knowledge: To set up any venture prior knowledge and information about
that field is necessary. Appropriate knowledge increases operating efficiency.
 Training for new staff: When a new employee is hired in the organisation, it is required
to ensure they get trained well so that they can make profits for the firm. It is the
responsibility of entrepreneur to be able to train new staff member so that misconduct can
be minimized (Hallak and et.al., 2015).
1.2 Self appraisal to identify strengths and weaknesses and Strategies for successful
entrepreneurship
Planning was made by me to set up travel and tourism company. Company will provide
packages for holiday tours. Domestic and global visitors will be taken into consideration to make
them available best tourist destinations where they could have good experience. Planning is done
by me to make this company to be different and unique in comparison to others. To start any
company self assessment is essential. I am also required to analyse my skills to discover my
strengths and weak points. According to my evaluation I have assessed my following strengths:
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 Communication skills: My interactive and communication skills are very good which are
necessary requirements in travel and tourism sector to convince customers. I have
abilities to deal with people in order to manage activities of organisation (Moscardo,
2014). My strong communication skills help me to build up good relations with people. Self confidence: I have confidence to carry out business activities which would help in
increasing efficiency of the venture. I am confident that I can use my capabilities to deal
with the challenges and will achieve success . My confidence will guide me to take steps
in correct direction. It will also help in making my company popular among the people in
market. Passion for learning: I have capabilities of learning things very fast. Learning is required
to be never stopped. One should always learn from the experience and lessons taught are
needed to be always remembered. I believe learning can be achieved by any means such
as conducting questionnaire, research work etc.
 Team player: To be successful in corporate world team work is essential. I have an
experience of working in an organisation where I had to work in teams for collective
outputs. I have capability to work within teams and also understand importance of team
work.
I have discussed my strengths but there are certain weak points also in me. These are discussed
below: Management Skills: I never had an experience of managing entire enterprise. I consider
this as my weak point. Management includes organising staff, business planning and
making control over activities. All such skills are very essential for effective operations
of an organisation.
 Willingness to take risks: To set up any industry, risk is an accountable factor which
cannot be ignored. I am not capable to handle failures (Horner and et.al., 2016). I always
try to not confront such kind of situations which can have opposite results according to
my expectations.
By self assessment I can give 7 points out of 10 on the scale. The reason behind giving 7
points is I have various weak points along with strengths which is required to be corrected to be
successful in the business. I can utilize my strengths to find new opportunities to make growth.
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TASK 2
2.1 Analysis for entrepreneurial enterprise development
I am planning to start a new travel and tourism company, I have performed analysis for
the enterprise evolution. Development process involves entrepreneurial skills. Travel and tourism
industry is growing with the passage of each day. Its demand has increased over the past few
years. Various services are being made available to the customers. Development process
involves following stages:
 To start any firm it is necessary to analyse the reasons for being an entrepreneur. It also
essential to identify main agenda behind starting up any company. This is the initial
phase in setting up of an organisation. Thus, business opportunities with the travel and
tourism sector are needed to be analysed.
 After selection of idea for setting up venture and opportunities for it, now decisions
related to funding and market potential has to be made. Market analysis is required to be
conducted (Peng and et.al., 2016).
 In tourism industry, holiday packages to be offered are needed to be planned and cost
associated with each package is required to be calculated. Decisions regarding these
factors have to be made for successful launching of the firm.
 To enter into market strategies are required to be developed. Success of an enterprise also
depends on how distinct and innovative is concept. It helps in growth of the company and
makes your firm to be different from competitors in the market.
 Strategies for marketing should be effective and influencing. For every new firm, it is
required to make customers alert of their offerings.
Analysis of business should be carried out by the entrepreneur who involves prediction of annual
income, total investment and estimation of fixed expenditure. It also involves practicability
analysis of the venture. To carry out all the stated points, management skills are essential.
Management skills involves planning of the enterprise, organisation of teams and control
activities to manage company's acts (Peters and et.al., 2014). Along with management skills
creative thinking is also required in the development of industry. Creativity brings innovative
services for the customers. Learning is essential for growth of an organisation. It ensures
mistakes made in past should not get repeated in the future. Business management includes
publicity of activities performed by it. To accomplish this development of vision is needed to be
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made by entrepreneur. Positive attitude of the entrepreneur is essential for corporation to get
successful. One should always be ready to face failures and risks and necessary improvements
should be made. To learn entrepreneurship exploration of the market and analysis of the current
market trends is essential. One should learn from their mistakes.
2.2 Factors that led to the success of an enterprise
An enterprise gets successful because of the management skills possessed by an
entrepreneur. Professional skills also contribute in the success process. Let's take example of
Virgin Galaxy tourism company to understand the scenario.
Richard Branson is the owner of Virgin Galaxy Tourism company. First firm was started
by Virgin Galaxy company was with a magazine named 'Student''. Later on organisation of
recording mail orders was started by him. Later a chain of record stores were opened by him
named with Virgin Mega. With the launch of Virgin Atlantic airlines, he made company
expansion. It was started on a very small scale and later on he achieved success with the time.
His company became popular across the world. Success was achieved because of the passion for
the work and inputs given in the business to make it successful (Durkin, 2016). Skills of the
Richard Branson has been analysed and following observations has been made:
 Management skills and confidence brought success for him. Appropriate planning and
strategies help in enterprise to get successful. Planning ensures goals and objectives of
the venture shouldmeet. His vision towards the goal was clear which helped him to get
successful (Grant, 2016). His organisation skills were remarkable. Business plans are
organised very well. He made sure that everything related to plan for setting up of firm
follows correct direction. Everything should move according to the strategy formulated.
He always used to be involved in every department of the company which are linked with
one another. Success and failure of any of the department has impact on other
departments as well. His planning and skills of leadership were excellent. He had
acquired sufficient knowledge before setting up company which helped in handling
operations effectively.
 He was professional with the work he was doing. Professional skills are contributing
factor in growth and success of the company. He was committed towards his customers
(Ogwa and et.al., 2015). He used to make contacts with the employees and customers on
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the continuous basis so that best quality services can be provided to the customers. His
communication skills were very good.
TASK 3
3.1 Sources of Finance and support in the travel and tourism sector
In travel and tourism sector, capital investment is a major issue. Limited sources are
available that make investments in this business. Some sources are given below:
 Friends and Family: It is the easiest way by which funds can be collected for the
commercial enterprise. Generally, paperwork and formalities are not involved in this
case. Finances can be accessed easily. It does not involve any terms of returning funds at
certain period. There is one disadvantage also with such kind of funding that is if due to
any reason organisation suffers failure, relation with the person gets affected (Esteban-
Guitart and et.al., 2014).
 Personal Savings: Personal savings is the easiest and quick way to obtain finances for the
firm. Here, amount is not needed to be paid back and equity transfer is also not needed. It
reflects positive image on the capitalist about the enterpriser that he is willing to face
risks.
 Bank Loans: They are also referred as conservative lenders. Banks require some sort of
guarantee before sanctioning loans to the entrepreneur. It involves paperwork formalities
and is required to be paid back at given period. Many time enterprisers fail to acquire
loan due in inadequate and poor assets. If bank balance is present, loan gets sanctioned
easily against this. Bank loans have short term durability.
 Business Investors: It is a common source of capital for entrepreneurs who are new but
have potential to grow and get successful. They make investments by keeping their
partnership in the profits made by the enterprise. By providing funds to the enterpriser
some control is taken up by them (Bodie, 2013).
 Overdraft facility: Banks provides facility to the account holder. They can withdraw more
money than the amount present in saving account. It is a type of credit agreement.
Agreement is between account holder and the institution providing finances.
 Private Placement: In this, securities are sold to the investors in order raise the capital.
Investors to which securities are sold could be mutual funds, banks and insurance
companies.
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3.2 business plan with a market assessment, Its analysis and cash-flow Analysis of the proposed
Travel and Tourism Company
Business Analysis: In the past few years' tourism industry has contributed in economic
development. Travel and tourism industry has several opportunities to expand irrespective of
challenges. Tourism industry has achieved growth with the time. Nowadays, attention has shifted
towards qualitative change.
Macro trends in Tourism: Development of tourism industry gets influenced with the evolution of
society. Increase in incomes has exaggerated profits for the tourism and travel sector as well.
Now it is taken as a relaxation activity (Barreto, 2013). Demand for tourism industry has also
enhanced as a result of globalization. International tourism has increased due to following
reasons:
 Income has increased over the years.
 Transportation facilities have increased.
 Evolution of communication media.
Networking is an important part of the tourism industry. More number of customers can be
contacted by the travel agents and networking has made communication easier. Industry has
become more connected with the sectors involved into it such as hotels, restaurants,
transportation and many more. Number of tourists has increased everywhere around the world.
Market Assessment: Market can be assessed by applying PESTLE analysis. Certain factors are
required to be understood to analyse future of the tourism sector.
 Political: Political factors greatly influence number of visitors visiting destinations. If a
country does not have political stability and terrorism is prevailing, tourists would not
prefer to visit such locations. Violence has negative impact on the tourists.
 Economic: Travel and tourism industry has generated income for several countries. It is
one of the contributing factors in economic growth. (Hasseb, 2017).
 Social: Quality offered by the tourism industry influences number of tourists. Social
values are required to be respected by the company.
 Technological: With the development in technology, people also expect companies to
follow current technology trends. Online bookings are required to be facilitated by the
companies.
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 Legal: For safe and secure travelling Laws are required to be followed by the travel and
tourism industry. Rules and regulations associated with the travelling should be adapted. Environmental: It involves preventing wastage of oils and fuels and minimizing
environmental pollution.
Cash Flow Analysis: It is conducted to identify financial stability of the company. With the set
up of any new company revenue may not be generated as per expectation. But as the time passes,
company makes growth with appropriate marketing strategies and utilising resources in effective
manner. In the cash flow analysis, total operating income, total outflow, net difference, Cash
balance is calculated. It includes bank charges, License fees, expenses for marketing, etc. (Nas,
2016).
Any organisation becomes successful if proper analysis is conducted. Market assessment
helps in identification of several factors that could affect company to get established. Cash Flow
analysis helps in management of money.
3.3 Persuasive business plan for the Travel and Tourism start-up project
There are certain points which are required to be considered for the successful
implementation of plan for the company. These are discussed below:
 Executive summary: It constitutes description of the concept of travel company. It is
basically divided into two parts: company objective and mission statement of the
company.
 Company Investigation: It involves uniqueness in the concept of the company.
 Customer inspection: Target customers and their behaviours regarding services that
company is providing are required to be analysed.
 Competitive Synthesis: It involves examination of the competitors in the market. Both
domestic and global competitors are needed to be analysed with the help of SWOT
analysis so that their strengths and weaknesses could be find out that might be threat for
your company.
 Strategic Plan: It includes planning for marketing and management of the venture
(Mariani and et.al., 2016). Financial plans: It includes cost examination of setting up of company value and to
examine sources that could provide funds for the business. Cash flow analysis helps in
identification of success and failure of the firm.
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Business Plan
Name Escape Travel and Tourism Company
Objective Objective of the company is to provide best
services with obtaining customer satisfaction
along with holding competitive position into
market.
Mission High quality services for the tourists across the
world (Dubey, 2017).
Ownership Solitary Ownership
Services Initially following packages will be provided to
the customers: Mountain trips, river rafting
trips, skiing trips and water sports trips.
Target Market People who love adventure and youth.
CONCLUSION
Entrepreneurship requires various skills to be successful in the market. It needs strong
communication skills to convince customers to choose your company for holiday tours.
Management and professional skills are the building blocks of successful enterprise. Tourism
industry has achieved significant amount of growth over the years and contributed in the
economic development of the country as well. To be successful entrepreneur, several skills such
as confidence, leadership skills, risk taking abilities and passion for learning is required.
Entrepreneurship involves identification of a firm. Creativity in the business can led venture
stand apart from the crowd. There are various sources of finances available such as personal
savings, family members and friends can also provide funds which do not require any
paperwork. A bank loan involves lot of paperwork formalities and has short term durability.
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REFERENCES
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