Australian Tourism Small-Medium Enterprises: Challenges Engaging with Government Support

Australian Tourism Small-Medium Enterprises: Challenges Engaging with Government Support

The Australian tourism industry is predominantly composed of micro, small and medium-sized enterprises, which make a substantial contribution to national wellbeing through their impact on gross domestic product (GDP), employment and socio-cultural development. Despite their significance, these businesses often face persistent challenges that threaten their long-term viability, including limited access to resources, skills and strategic support. Government support programs (GSPs) are designed to address these challenges by providing critical assistance to help small-medium enterprises (SMEs) innovate and remain competitive. However, the extent to which small tourism businesses engage with these programs and the factors influencing that engagement, remains largely unexplored. This thesis investigated how small Australian tourism businesses engage with GSPs for the purpose of innovation. The purpose of this study was to identify areas for improvement in the provision of government support programs enabling greater engagement by small Australian tourism businesses. Adopting a qualitative approach, the study conducted semi-structured interviews with 31 participants from across the tourism sector. A thematic analysis of the interview data revealed six themes, ‘resources’, ‘exchange’, ‘innovation’, ‘external environment’, ‘support characteristics’ and ‘opportunity cost’. Among these, time emerged as the most frequently cited and critical ‘resource’ influencing engagement. The findings affirm that small tourism business are actively innovating, often in resource-constrained environments. The study highlights inequities in access to government support, with some businesses facing greater barriers than others. Importantly, the research identifies emotional and relation dimensions of business-to-government interactions, suggesting that social exchange theory offers a valuable lens for understanding how trust, reciprocity and perceived fairness shape engagement with support programs. By engaging directly with both industry and government stakeholders, this study enhances its practical relevance and contributes to a more nuanced understanding of the dynamics at play. Ultimately, the research provides actionable insights for policymakers seeking to improve the accessibility, effectiveness, and impact of government support programs, thereby fostering a more resilient and innovative tourism sector.