Enhancing business performance: The role of education and business skills in Small-To Medium Sized Tourism Enterprises (SMTEs) in the Eastern Cape, South Africa
Dinesh Vallabh
International Journal of Business Ecosystem & Strategy · 2026 · Vol. 8 / Issue 3 · 224-230
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Observed 21 Oct 2026, 00:14 UTC
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Abstract
Globally, small businesses are recognized as key contributors to employment creation and economic development, particularly within local and regional economies. In South Africa, Small to Medium-sized Tourism Enterprises (SMTEs) play an important role in inclusive growth; however, their performance is often constrained by limited education levels and business skills among owners and managers. A quantitative research approach was employed, drawing on survey data collected from a random sample of 332 SMTE owners and managers operating within the province in order to understand the factors that contribute towards business performance. The findings underscore that the education levels and business-related competencies are significantly associated with improved business performance. Conversely, the findings demonstrate that deficiencies in managerial and operational skills negatively affect enterprise efficiency and growth potential. Furthermore, the study highlights the importance of targeted skills development and education initiatives for SMTE owners and managers and underscores the role of government and support agencies in strengthening training programmes to enhance the sustainability and competitiveness of the tourism sector. Overall, the study makes a significant contribution to the under researched area of tourism entrepreneurship by demonstrating the critical role of human capital in strengthening SMTE performance within a developing economy context. The findings of the study lay a solid foundation for future interventions to enhance business performance within the small business sector. Moreover, this study provides a foundation for further research and longitudinal studies in the area of small business performance.
Keywords: {'name': 'SMTEs, Education, Business Skills, Business Performance, Eastern Cape, South Africa'}
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Dinesh Vallabh
Walter Sisulu University
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