EFFECTS OF TOURISM ENTREPRENEURSHIP ON REGIONAL DEVELOPMENT

Abstract

The process of tourism entrepreneurship is seen as the path to enhance local economies in given environments: social, cultural, and physical. Small tourism enterprise (STE) has significant contribution towards new product development, innovative entrepreneurship and regional development. STEs face numerous business obstacles due to their managerial weaknesses, limited access to external expertise and finance, and institutional regulatory environments that promote barriers to the new entry and business growth. These obstacles can be overcome through various government initiatives: identifying the best practices, benchmarking, access to financial support and labor force skills development. The aim of this paper is to examine tourism entrepreneurship contribution to regional development in a transitional economy environment. Also, we will examine some theoretical models of regional development, which will identify issues and constraints facing STEs development, serving policy makers in better integrating of small-firms sector into wider regional and national economies.
Key words: Tourism, Entrepreneurship, Regional Development