In many small towns and rural areas, tourism businesses like guesthouses, tour companies, and local food experiences help keep communities alive. But these businesses aren’t always run with big profits in mind. Instead, many are started by people known as tourism lifestyle entrepreneurs (TLEs) who want a better quality of life. These individuals choose to live in a place they love, build a business around it, and contribute to the life of the local community.
This study, carried out by C-EDGE researchers in conjunction with those in Portugal, looked at what drives these entrepreneurs to create social innovations. That means doing things not just to make money, but to solve social or environmental problems—like using local food, hiring local people, preserving culture, or involving tourists in community life.
The Real-World Challenge
Tourism is a key part of many local economies, but small tourism businesses often face a difficult choice: do what’s best for the community or focus on staying financially afloat. Unlike big companies, these businesses don’t always have the resources to innovate. And social innovation—solutions that help people and the environment—can be expensive and hard to implement.
So, the big question is: What helps these lifestyle tourism businesses become agents of positive change in their communities?
What the Research Found
The study surveyed 221 tourism entrepreneurs in Portugal to understand what drives them to innovate in ways that benefit society.
Here’s what the researchers found:
- Value co-creation is key: Businesses that work closely with others, whether customers, suppliers, or community members, are more likely to develop innovative ideas that help the local area.
- Being market-oriented helps: Entrepreneurs who understand their customers and adapt their services to fit their needs are more likely to also make a social impact.
- Proactiveness plays a role: While being forward-thinking helps entrepreneurs work with others (co-creation), it doesn’t always directly lead to social innovation, though it’s still important.
- Opportunity recognition isn't everything: Surprisingly, being good at spotting new opportunities didn’t always translate into real innovation unless backed by strong collaboration and community engagement.
The study also showed that different types of entrepreneurs have different paths to success. Some rely on co-creation alone, others on market understanding, and some combine both.
What Can We Do About It?
The big takeaway is that supporting small tourism businesses isn’t just about giving them funding (although that is an important way to support them to act on ideas) - it’s about helping them build stronger relationships. Local governments, tourism agencies, and policymakers can:
- Support collaboration: Encourage partnerships between businesses and community groups.
- Provide training: Help entrepreneurs improve their marketing and customer engagement skills.
- Celebrate co-creation: Highlight and reward businesses that involve the community and tourists in unique, meaningful ways.
- Focus on place-based strategies: Recognize that each business is deeply tied to its location, and policies should reflect local needs and values.
Final Thought
Tourism lifestyle entrepreneurs aren’t just business people—they’re community builders. With the right support, they can become powerful forces for social change, helping rural and regional destinations thrive in sustainable, meaningful ways.
To read this full paper, visit > https://doi.org/10.1080/09669582.2023.2272221
For further enquries, email Professor Rob Hallak > rob.hallak@unisa.edu.au
