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The Contribution of Tourism to Micro and Small Enterprise Growth

Author

Listed:
  • Patience M. Mshenga

    (Department of Agricultural Economics and Agribusiness Management, Egerton University, PO Box 536, Njoro, Kenya)

  • Robert B. Richardson

    (Department of Community, Agriculture, Recreation and Resource Studies, 131 Natural Resources, Michigan State University, East Lansing, MI 48824-1222, USA)

  • Bernard K. Njehia
  • Eliud A. Birachi

Abstract

Tourism is an increasingly important economic sector in many developing countries. In Kenya, it represents the second greatest contribution to gross domestic product (GDP) after agriculture. Data from a survey of 449 micro and small enterprises (MSEs) in coastal Kenya were used in a modified Evans growth model to examine the contribution of tourism to the growth of farm and non-farm MSEs. The authors also examined the influence of entrepreneur and business characteristics on the growth of farm and non-farm MSEs along the Kenyan Coast. The age of the business, business income, marital status, number of employees and form of business organization were found to influence MSE growth significantly. Tourist spending and activities were also found to have a significant effect on MSE growth. The results have implications for the role of tourism in economic development, small business growth and poverty alleviation.

Suggested Citation

  • Patience M. Mshenga & Robert B. Richardson & Bernard K. Njehia & Eliud A. Birachi, 2010. "The Contribution of Tourism to Micro and Small Enterprise Growth," Tourism Economics, , vol. 16(4), pages 953-964, December.
    • Handle: RePEc:sae:toueco:v:16:y:2010:i:4:p:953-964
    DOI: 10.5367/te.2010.0018
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    References listed on IDEAS

    as
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    Cited by:

    1. Xiang Gao & Zhenhua Gu & Shuzhen Niu & Sunghan Ryu, 2022. "Effects of International Tourist Flow on Startup Financing: Investment Scope and Market Potential Perspectives," SAGE Open, , vol. 12(4), pages 21582440221, October.
    2. 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.
    3. Ronald Kumar, 2014. "Exploring the nexus between tourism, remittances and growth in Kenya," Quality & Quantity: International Journal of Methodology, Springer, vol. 48(3), pages 1573-1588, May.
    4. 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.
    5. Alix-Garcia, Jennifer & Walker, Sarah & Bartlett, Anne, 2019. "Assessing the direct and spillover effects of shocks to refugee remittances," World Development, Elsevier, vol. 121(C), pages 63-74.

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