Abstract
The new global economy and its branches need to be both sustainable and entrepreneurial. In the world where finitude of resources can be eye-witnessed, decisions that lay upon the principles of people, profit, and planet have the ability to preserve the quality of life of present and future generations. Tourism is one of those sectors which have largely expanded over the past decades and whose development affects countries, economies, and natural resources. Sustainable tourism appears to be a natural fit for entrepreneurs wishing to establish new ventures and pursue business opportunities in today's dynamic yet complex business climate. This chapter examines the nexus between entrepreneurship and sustainable tourism. On the basis of theoretical framework and the review of relevant global environmental and tourism-specific tendencies, an online empirical study was conducted to understand how young adults perceive entrepreneurship and sustainability in tourism and the contribution of the two to sustainable development.
TopIntroduction
Over the last years, sustainability and its facets have gained an increasing attention worldwide. Human activity has been harmful to the planet for centuries and, if maintained this way, it constitutes a real danger to life on the planet. The United Nations (UN) has recognized these tendencies and translated them into seventeen Sustainable Development Goals (SDGs) for the period 2016-2030 (United Nations, 2018). The SDG framework is a “blueprint to achieve a better and more sustainable future for all” (United Nations, 2017) and is used as a call for action to promote economic growth while protecting the planet. Sustainable development is now regarded as the main concept of the future (Carley & Christie, 2017).
When looking closer at the SDGs, some of them, such as “decent work and economic growth” or “industry, innovation and infrastructure” are directly related to entrepreneurship venturing. Moreover, there is a number of others, associated to the entrepreneurship role and potential, pointing out the prospective outcomes of well-succeeded entrepreneurial activity in the micro, meso and macro dimensions. Despite its economic and social importance and being an object of unceasing attention, entrepreneurship does not have one generally accepted definition. Hisrich (1986) regards entrepreneurship as a process in which risk seems to be a necessary component. More specifically, he suggests that through a combination of effort, time and a variety of risks entrepreneurship can result in something valuable and different (Hisrich, 1986). People have a need to create (Murray, 1938) and entrepreneurship can be one of the means to express it. New generations bring new ideas and tend to invest in providing new solutions. Creating new ventures allows for development of people, economy and society.
Tourism is an interesting branch to consider when it comes to entrepreneurship and sustainability. Over the last decades, the tourism sector has witnessed a continuous and exponential growth. The tourism industry is responsible for 4.4% of GDP, 6.9% of employment and 21.5% of service exports in OECD countries (OECD, 2020), and has registered a continuous growth. In Portugal, the contribution of travel and tourism to GDP was 17.3% in 2017 and is forecast to rise up to 20.5% in 2028 (World Travel & Tourism Council, 2018) playing an important role in the national economy. Changes in demographic and lifestyle patterns together with holiday/work preferences reflect the need for innovation in tourism and give companies an opportunity to respond to the increase in tourist demand resulting from these changes (Crnogaj et al., 2014). Increased demand, diversification of tourism products and services, and the development of sustainable businesses are necessary to meet the needs of new types of tourists (Lordkipanidze, Brezet, & Backman, 2005).
Despite its strategic role to countries, investors and entrepreneurs (Nikraftar & Hosseini, 2016), the concept of tourism entrepreneurship has not been yet properly understood (Nikraftar & Hosseini, 2016; Zhang et al., 2020). Crnogaj and colleagues (2014) add to that the linkage between tourism, entrepreneurship and sustainability have not received so far much consideration whether in research or policymaking regardless of their unquestionable interdependence. At the same time, tourism cannot survive in the long run if it is not both, sustainable and entrepreneurial (Crnogaj, 2014).
Key Terms in this Chapter
Generation Z: Generation of people born between 1995-2015 (this estimate is approximate as no generally accepted time frames exist) and who are sometimes referred to as first digital natives or ‘zoomers’.
Standard of Living: Construct describing the quantity and quality of goods and services available to an individual, group, socio-economic class, or the entire population. Refers to the level of wealth and lived comfort.
Sustainable Development Goals: Objectives adopted by the United Nations in 2015 as a universal call to action addressing peace, prosperity, and protection of the planet. The Sustainable Development Goals are holistic, multidimensional, and integrated so that an action (and change) in one will affect outcomes in others.
Quality of Life: Subjective perception that an individual holds about their life in the context of present conditions, circumstances, and values. A multidimensional concept that measures a person's well-being.
Innovation: Process of creation, development and practical implementation of a new product, service or process by which it is expected to relace or improve the existing solution, contribute to efficiency and effectiveness and create value.
Sustainability: In general terms, feature, condition, or characteristic of an object or a system that allow it to endure over time.
Nomad: Individual with no strongly developed sense of belonging. Moving from a place to place is his way of living.
Sustainable Tourism: Tourism of which planning and development pay attention to the present and future potential impacts on people and life on the planet in social, economic, and environmental dimensions.