The Role of Entrepreneurship Within the Tourism Sector - Coursework Example

The Role of Entrepreneurship within the Tourism Sector The Role of Entrepreneurship within the Tourism Sector Introduction Entrepreneurship can be defined as a mode or mechanism by which an individual identifies an opportunity which he or she utilizes to start a new business venture. In addition to realization and utilization of one’s opportunity, entrepreneurship also involves the sourcing of limited resources and the ability to take risks (Murphy, 2012). These risks are often well calculated and place the business in a better position than its competitors. On the other hand the tourism industry is a niche business sector which is involved in facilitating travel for leisure, recreational or business purposes. Tourism is generally associated with international travelling and involves people travelling to place that are different from their usual environments. Currently tourism has become very popular; however, the places which people visits are largely influenced by external factors such as politics or the global economic situation. Hence, the tourism industry experiences a large deficit due to the recession that occurred in the late part of the 21 century. Another example of how external factors influence tourism is the H1N1 virus that broke meaning that the number of tourists greatly reduces in the affected parts. Therefore, in assessing all these factors one can see that the tourism industry is very specialized at the same time is largely influenced by external features. Hence, entrepreneurship is very essential in this industry as it involves the utilization and manipulation of these external factors to ensure the success of the business. This paper will illustrate the relationship and role of entrepreneurship in the tourism sector. Background As mentioned above, there are many factors that influence the success of the tourism industry and some of these are not within the control of the tourism personnel. For example, the outbreak of a deadly disease such as H1N1 leaves no room for marketing a particular area directly and the tourism industry will definitely have a reduction in their customers. Other features include political problems resulting in wars and making the area less appealing. An example of some political changes is Crimea which was a part of Ukraine and now voted to become part of Russia. Many people who used to visit Crimea for summer where from Ukraine and now require a visa and other strenuous processes to visit this resort. Hence, the tourism industry in this area has been largely affected. However, entrepreneurs have the possibility and talent to manipulate these situations and their role is vital in such situations. The following section will be dedicated towards assessing the extent and nature of entrepreneurship in the tourism sector. Nature and extent of entrepreneurship in the tourism sector Entrepreneurship is essential in a diverse and constantly changing field such as tourism. The fact that the industry is constantly changing and influenced by different spheres of life requires entrepreneurs to create a stable of image of their product and assure potential customers that their areas are still attractive. One of the main roles of entrepreneurship is marketing. For example in the situation were a country or a previous tourism destination experiences some political problems, the entrepreneur has a role to convince people that the extent of the problem is not as big as it is presented. The media usually creates an image which is very damaging for tourist destination as it is often exaggerated and at times very biased (Koellinger & Thurik, 2012). Therefore, the entrepreneur must market the destination which he or she represents and find social attributes and other factors that will reassure sure potential tourists and encourage them to visit this destination (Koellinger & Thurik, 2012). An example of such a situation is the issue with Zimbabwe which was one of the biggest tourist attractions in Africa until the political situation involving land ownership issues. The country’s tourism sector was largely affected. However, an entrepreneur in this situation has to find a way by which he or she can separate the beauty and natural wonders that exist in this country from the current political situation and the negative image which is presented in the media. Furthermore, the entrepreneur must assess the situation and find ways by which the tourism industry can survive. Despite its specificity, the tourism industry has the ability to tap into new markets as people require resting and by manipulating certain aspects, this industry can attract different customers. Hence, the above mentioned political situation in Zimbabwe can be used as an example. The issue was mainly between Zimbabwe and the Western countries. Hence, an entrepreneur may either try to separate politics from the tourism industry or use this as a way of attracting other clients. For example, there are other markets and countries which do not share the same principles as the Western countries. An example is Russia or even China and these are potential clients. Hence in short, the entrepreneur is required to manipulate the different situations which can affect the tourism industry and the attractiveness of the market. The fact that the industry is always under different influences means that there is always need for adjustment and adaptation and these are features which are characteristic in entrepreneurship. Therefore, another way by which entrepreneurship plays a role in the industry is by awareness. Awareness is characteristic of entrepreneurship is essential in marketing and unveiling resources that are potential tourist attractions (Moutinho, 2012). There are many areas that are potential tourist attractions however, these have not been appropriately marketed and some have not even been discovered. As mentioned above, entrepreneurship involves awareness of the market and the ability to find opportunities and take some calculated risks in making full use the opportunities. In small businesses such as tourism it is always essential to be aware of available sources and the potential for expansion and progress can be increased with improved awareness. This can also increase the base of clients as there are limited. Tourism is an industry that is based on different sectors as mentioned above which include business, recreation or leisure (Moutinho, 2012). Therefore, awareness in the tourism industry is required to determine which if these features are the most lucrative and which changes are taking place that may be an opportunity for the company to increase its client base. In the aspect of tourism, individuals are often focused on the leisure and recreational part and neglect the fact that business is also a key element in the industry. There are also other spheres which entrepreneurs can use to increase client. As mentioned above, awareness is a key element and it is also useful to take note of the new laws that are implemented in a country. Government decisions also influence tourism and create new opportunities which entrepreneurs should be able to realize. For example, changes in medical laws and regulations could open the door for medical tourism which is now becoming very popular (Jaafar et al., 2011). Hence, this illustrates the nature of entrepreneurship in terms of awareness and the fact that this can be used to create new opportunities and ways of expanding the business. In summation, the tourism industry is has a niche and very specialized market and hence high quality entrepreneurship is key for such industries to survive the competition that exists in this small field. The nature in which competition can be addressed through entrepreneurship will be discussed in the section of creativity and innovation. Individuals in the tourism industry should explore the entrepreneurial leadership and utilize this in relationship marketing orientation and marketing in general to improve their business performance (Murphy, 2012). Creativity and Innovation in the tourism sector Creativity and innovation are two key elements in the tourism industry that are also attributes of entrepreneurship. These are required in this industry as the industry is highly competitive and involves many businesses that are marketing and selling the same product. The creativity is essential as the industry requires one to market the same product from different angles. As mentioned above, there are many areas which are marketable and potential tourist attractions, and with the right strategies and creative presentation, these could benefit both the country and the organization. The 21st century provides the technology and means that enable business to spread knowledge more efficiently. With technology and the constant communication between people from all parts of the world via the internet, there is a more room for creativity in the way the tourism sector spreads its ideas. Many articles have already illustrated the growing relationship between tourism and creativity and even coining the term ‘creative tourism’. Creativity is becoming more important in this industry and has led to the transformation from traditional cultural tourism (Skokic & Morrison, 2011). In essence, creativity has led to the shift of tourism today from tangible heritage marketing to presentation of intangible culture and the everyday life of a particular area. In tourism, all businesses offer the same commodity and the art of being successful revolves around marketing and presenting this product in a way that makes it more appealing and hence attracts more clients than the competition (Murphy, 2012). Hence creativity in tourism involves making the same thing look different and better than what is being offered by the competing companies. This can be done by creativity and innovation alone as the product itself is the same for all the companies. Another reason why creative tourism has become popular is it can take areas which are not tourist attractions and find aspects of their everyday life that are marketable to other communities. This is another aspect which requires entrepreneurship as there is need to identify these marketable aspects of everyday life. Creativity also gives the tourism industry more freedom as it is not bound to the traditional cultural conformities and gives the host more authentic and flexible marketing possibilities (Jaafar et al., 2011). However, some individuals oppose excessive creativity in the tourism industry as interacting the everyday life of individuals may actually place their culture at risk as they are at times steered towards conforming to the creative hype. Evaluation of an entrepreneur In order to attain more insight on the role of an entrepreneur, it is better to assess the activities carried out by these individuals and what distinguishes them from other professionals. An entrepreneur is easily distinguished from other individuals by his or her character and natural attributes (Kuratko & Thurik, 2012). By definition an entrepreneur is someone who assesses different business undertaking and willing to take risks in situations where there is a possibility of progress or making profit. However, this definition alone is not effective in describing true entrepreneurship as there is a big difference between this and just running a business. There are clearly special qualities possessed by this group of individuals and this is why they are so successful in their industry. One of the main traits is that these individual are willing to take risks. Risk taking is a vital aspect of business as many people are not willing to engage in risky behavior meaning the success for every risk taken is likely to yield marked results. However, there are many people who oppose the behavior of entrepreneur as they believe that the risks taken by these individuals are more likely to fail. The majority of entrepreneurs are not afraid of failure and they are likely to fail many times before they succeed due to their risk taking nature. However, this is an inaccurate assessment as there is difference among entrepreneurs and their level of success. Those who are success are clinical and tactical in their risk taking and this is often referred to as calculated risk. Apart from being risk takers, entrepreneurs are known for their innovation and the ability to make opportunities where they might appear to be nonexistent. By innovation, these individuals are able to gain access to opportunities which others may not see and hence also leads to success and profits are maximized as there is limited competition. Innovation is one of the attributes of entrepreneurs which is being utilized in the tourism industry. The innovative nature also enables entrepreneurs to be useful in any sector of business as this is a trait that is applicable in many different situations. Hence, any situation or business environment is an opportunity for an entrepreneur as they can implement new ideas and create strategies based on these environments. Another attribute of a successful entrepreneur is that the he or she takes the business or venture they are involved in very seriously. These individuals are very dedicated to their field which is one of the reasons why they are able to find areas in the market that possess potential benefits for them. They take long hours in studying different traits and different market patterns which is why when they take risks they are aware of the potential gains and benefits that may be yielded from each risk taken. All the decisions that they make are planed not only for the present but for the future as well as calculated on the steps that will be taken if the company becomes a success and if it eventually fails (Bagherifard et al., 2013). Entrepreneurs are also very cautious with their investments aim terms of the money they dedicate to certain spheres. Am mentioned above, they are known risk takers however, this risk must be able to compensate for the money that has been used and yield profits. Entrepreneurs do not stop planning once a business idea has become successful, but continue to find and look for new ways which they can maximize their profits in this business and possibilities of expanding their business (Bagherifard et al., 2013). This means that an entrepreneur is never satisfied with success but is always looking for other opportunities to maximize a outcome from an investment. This is unique as most business are planned for the moment and the amount of risks taken are very limited and at the same time individuals who run these business are looking to sustain a steady profits by following the same successful scheme they have been using, which is why they are at a larger risk of failing if any changes occur in the market as compared to entrepreneurs (Bagherifard et al., 2013). Conclusion In summation, it is clear that entrepreneurs are very aware of the business environment and have the capability to detect opportunities and utilize them to the point of success. They also have the possibility to identify the needs in the market and provide the best way to address these requirements (Kuratko & Thurik, 2012). These traits are applicable and very important in the tourism industry as it is very small, specialize and has a limited amount of marketing possibility. Hence, new ways have to be innovated to attract more clients, address the external issues that may affect the business and attain a market advantage over competition which is marketing the exact same products. Entrepreneurship is an important skill in business and is essential in the tourism industry. Many businesses in this sector often have problems sustaining their market share and perform due to the lack of creativity and innovation as the tourism industry is different to other businesses and one cannot simply depend on one successful strategy. There is a constant need for new ideas in order to ensure the clients continue to increase and the resources at hand are fully utilized. References Bagherifard, S. M., Jalali, M., Jalali, F., Khalili, P., & Sharifi, S. (2013). Tourism Entrepreneurship Challenges and Opportunities in Mazandaran. J. Basic. Appl. Sci. Res. Baum, J. R., Frese, M., & Baron, R. A. (Eds.). (2014). The psychology of entrepreneurship. Psychology Press. 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