The purpose of this paper is to examine the entrepreneurial behaviour of small tourism businesses and their ability to contribute to regional development in the context of a transitional economy.
The research, by combining in‐depth interviews and a survey, reports on a case study of Wairarapa, a region of New Zealand that has recently seen a large expansion in the tourism sector.
The paper identifies a number of important criteria for the effective interaction of private‐public sectors as well as illustrating how small tourism firm owners are facing challenges in one of the most liberal economic environments whilst taking action to ensure periphery endurance.
Inductive theory or a bottom‐up model for regional development provides the conceptual structure for the research. The paper argues that the related paradigm is increasingly underpinned by entrepreneurial behaviour of a multiplicity of stakeholders in rural localities where tourism is seen as a key agent for regional rejuvenation on the demise of traditional economic activities.
