Social enterprises in tourism: an exploratory study of operational models and success factors

Abstract

Organisations using market-based approaches to achieve social and/or environmental aims are increasingly appearing in tourism. These “social enterprises” express responsible tourism through contributing to poverty alleviation and environmental protection while being financially self-sustaining. This study uncovers the approach of such enterprises in balancing commercial and social/environmental objectives, and investigates the determinants of success. The paper applies Alter's 2006 seven-model framework of social enterprise models to a sample of successful enterprises, “success” being aligned with the broader aims of social enterprises. Overall, it was found that touristic social enterprises operate similarly to those in other sectors, although with a clear preference for three “Alter” models, depending on the type of activity, namely Service Subsidisation, Employment and the Market Intermediary Model. Success factors appear to be valid across all social enterprises in tourism, irrespective of primary business activity or operational model, and cannot be attributed to a single factor but to combinations of factors in the multiple dimensions of leadership, strategy and organisational culture. These guide the implementing mechanisms of processes and structure, human resources, financing, governance, performance measurement and marketing. The most likely success factors are strong leadership, clear market orientation and organisational culture, which balances financial with social/environmental aims.