Tourism entrepreneurial struggles, survival, and success: A multinomial logit regression analysis

Abstract

Despite global efforts to promote entrepreneurship, many tourism entrepreneurs in emerging economies continue to face challenges in innovation and business sustainability. Little research has been done on how sociodemographic factors influence the likelihood of tourism entrepreneurial success. This study explores how gender, age, and education influence business success among tourism entrepreneurs. Using a structured questionnaire, 250 completed responses from tourism entrepreneurs in the iNkosi Mtubatuba Local Municipality, KwaZulu-Natal Province, South Africa, were analyzed using a multinomial logit model. Drawing from human capital theory, the results reveal that gender, age, education level, and business experience significantly affect tourism entrepreneurial success outcomes, with female entrepreneurs being four times more likely to classify themselves as struggling entrepreneurs than male entrepreneurs. Younger tourism entrepreneurs (18–29 years) are more likely to be categorized as struggling, while those aged 40 to 49 years are more likely to be successful. Furthermore, entrepreneurs with only a secondary-school qualification are more likely to be considered struggling or surviving entrepreneurs than those with a tertiary education. Business experience and innovation were also found to increase the likelihood of surviving and having successful tourism business outcomes. The study provides valuable insights for policy makers, educators, and support organizations aiming to boost tourism entrepreneurial success.