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Micro and small enterprise participation in tourism in coastal Kenya

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  • Patience Mshenga
  • Robert Richardson

Abstract

Small business participation in tourism can help diversify income and contribute to poverty reduction in some circumstances. We examined micro and small enterprise (MSE) participation in tourism and the linkages between tourism businesses and MSEs in the coastal region of Kenya, using data from two surveys involving 449 MSEs and 49 hotels. Tobit regression was used to estimate the determinants of MSE participation in tourism, as well as the proportion of products purchased by hotels from MSEs. The results indicated that older, larger MSEs and those that were members of associations were more likely to participate in tourism. The determinants of hotel procurement from MSEs included age of the hotel, bed capacity, and management characteristics. The results highlight the opportunities and barriers for MSE participation in tourism and have implications for policies related to sustainable tourism development, regional economic development, and enhancement of rural livelihoods. Copyright Springer Science+Business Media, LLC. 2013

Suggested Citation

  • Patience Mshenga & Robert Richardson, 2013. "Micro and small enterprise participation in tourism in coastal Kenya," Small Business Economics, Springer, vol. 41(3), pages 667-681, October.
    • Handle: RePEc:kap:sbusec:v:41:y:2013:i:3:p:667-681
    DOI: 10.1007/s11187-012-9449-5
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    Cited by:

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    2. Aldo Salinas & Cristian Ortiz & Pablo Ponce & Javier Changoluisa, 2023. "Does tourism activity reduce the size of the informal economy? Capturing long-term heterogeneous linkages around the world," Tourism Economics, , vol. 29(2), pages 305-347, March.
    3. Badassa W. Chala, 2024. "Effects of economic freedom and ease of doing business on trade in global value chains: Evidence from sub‐Saharan Africa," African Development Review, African Development Bank, vol. 36(1), pages 70-83, March.
    4. Kiagho Bukheti Kilonzo, 2017. "Rock Art and Tourism in Tanzania: In Search for Innovations," Academica Turistica - Tourism and Innovation Journal, University of Primorska Press, vol. 10(1), pages 69-81.
    5. Fernando J. Garrigós-Simón & José Luis Galdón-Salvador & Ignacio Gil-Pechuán, 2015. "The Economic Sustainability of Tourism Growth through Leakage Calculation," Tourism Economics, , vol. 21(4), pages 721-739, August.
    6. Wei Shui & Yiyi Zhang & Xinggui Wang & Yuanmeng Liu & Qianfeng Wang & Fei Duan & Chaowei Wu & Wanyu Shui, 2022. "Does Tibetan Household Livelihood Capital Enhance Tourism Participation Sustainability? Evidence from China’s Jiaju Tibetan Village," IJERPH, MDPI, vol. 19(15), pages 1-15, July.
    7. Shuwen Liu & Irene Cheng & Lewis Cheung, 2017. "The Roles of Formal and Informal Institutions in Small Tourism Business Development in Rural Areas of South China," Sustainability, MDPI, vol. 9(7), pages 1-14, July.

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    More about this item

    Keywords

    Micro enterprises; Small business participation; Tourism; Economic linkages; Kenya; L25; L83; L26; O17;
    All these keywords.

    JEL classification:

    • L25 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Firm Performance
    • L83 - Industrial Organization - - Industry Studies: Services - - - Sports; Gambling; Restaurants; Recreation; Tourism
    • L26 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Entrepreneurship
    • O17 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Formal and Informal Sectors; Shadow Economy; Institutional Arrangements

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