The influence of education, entrepreneurial capabilities and external business environment on tourism business success: a Partial Least Squares path modelling

Despite the recognised role of individual capabilities and external conditions in entrepreneurship, there have been limited empirical studies that have jointly tested these factors in South Africa’s tourism sector. Guided by human capital and opportunity identification theories, this study examines how education, operational and managerial capabilities, and external support influence the success of tourism businesses. A questionnaire survey of purposively sampled 350 tourism entrepreneurs in Mtubatuba Local Municipality, KwaZulu-Natal Province in South Africa, generated data which were analysed using a structural equation modelling approach to test the proposed relationships. Managerial capability was the strongest predictor of tourism business success, followed by tertiary education. External factors also played a statistically significant role. Despite tertiary qualifications, many tourism entrepreneurs lacked applied business skills, which delayed success. Based on these findings, the study recommends that South Africa’s Department of Higher Education and Training (DHET) integrate practical entrepreneurship content into tourism-related programmes. The Small Enterprise Development and Finance Agency (SEDFA) and Tourism Enterprise Development and Support Programme (TEDSP) should expand targeted training and mentorship schemes for tourism entrepreneurs. Local municipalities should strengthen support infrastructure, streamline regulations, and enhance access to local business development services to build resilience and long-term sustainability in the sector.