Entrepreneurs in Survival Mode

In many island destinations, small tourism businesses are celebrated as the backbone of the local economy. But what if they're not growing — just surviving?

During my research in Fiji's Nadi and Port Denarau regions, I spent weeks speaking with the entrepreneurs who run the heart of the visitor experience: family-owned souvenir shops, street food stalls, diving instructors, café owners, tour guides. What I saw was a paradox:

These entrepreneurs are deeply embedded in the tourism economy — but dangerously disconnected from its development.

It's a pattern I now recognize in other places too, including Aruba. Small business owners are passionate. Resilient. Creative. But many operate in permanent survival mode — and this chronic pressure crushes their capacity to innovate, grow, or collaborate.

What Survival Mode Looks Like

In Fiji, it was clear:

• Business decisions were made week to week, often just to make rent or payroll.
• Entrepreneurs had little or no access to reliable digital tools, accounting systems, or basic branding.
• Many were unaware of changing traveler expectations — let alone able to adapt to them.
• There was limited coordination between businesses, and few saw themselves as part of a broader destination experience.

As part of a group research project co-authored at NHTV Breda University — Exploring the Entrepreneurial Capacity to Innovate (Alberts et al., 2014) — we found that Fiji's micro and small tourism enterprises faced major barriers to growth. They weren't underperforming because of personal limitations — they were operating within systems that didn't allow them to thrive.

"We hear about tourism growth, but we don't see it. We're just trying to stay open."

Why Survival Mode Blocks Innovation

Innovation isn't just about apps, AI, or new platforms. It's about having the time, space, and mental freedom to test ideas, improve services, and collaborate with others. When business owners are stuck reacting to crises — a late shipment, a broken fan, a quiet week — there's no bandwidth to rethink strategy or try something new.

Because small businesses are where authentic, unique experiences are born — and where visitors often form their strongest memories.

Connecting the Dots in Aruba

San Nicolas: Creative Energy Without a Framework

San Nicolas is often described as Aruba's cultural soul. It boasts striking street art, the Carubbian Festival legacy, creative entrepreneurs, and a rich Afro-Caribbean heritage. But behind the murals and festivals lies a deeper issue: many local business owners operate in isolation.

• There is no structured mentorship, training, or resource hub tailored to their unique challenges.
• Many business owners have powerful ideas — themed cafés, storytelling experiences, art workshops — but lack help with business planning, licensing, or digital marketing.
• The area struggles with inconsistent visitor flow and minimal evening economy.

San Nicolas feels like a destination waiting to happen — but it needs coordination, community-led placemaking, and investment in entrepreneurial capacity.

Oranjestad Main Street: Visibility Without Connection

Oranjestad's main street was once Aruba's busiest commercial corridor for locals — a lively stretch filled with fashion boutiques, electronics stores, shoe shops, and small family-owned businesses. But that's changed.

• The tram system, while environmentally progressive, reduced car access without a clear transition plan to support businesses through the shift.
• The area's strategic focus pivoted almost entirely toward cruise tourism, sidelining locals and alienating longstanding customers.
• What followed was a race to the bottom — price wars, generic souvenirs, and very little investment in long-term brand or experience development.

Today, despite heavy cruise traffic, the energy has faded. The challenge now is to reclaim Oranjestad's core — blending heritage, culture, and commerce into something fresh.

Palm Beach: Underdeveloped in Depth

Palm Beach is Aruba's most developed tourism zone — lined with high-rise resorts, brand-name stores, chain restaurants, and polished plazas. But to repeat guests and locals, it increasingly feels commercialized and disconnected — like a sanitized "Little Miami" transplanted to the Caribbean.

In the backstreets and surrounding neighborhoods of Noord, you'll find Aruba's independent spirit alive — in cafés, yoga studios, wellness retreats, pop-up bakeries, and creative workspaces. These places aren't hidden by accident — they're hidden by the lack of integration into the destination narrative.

What Support Should Actually Look Like

Based on what I've seen in Fiji, and what I observe in Aruba, support for tourism entrepreneurs needs to be less bureaucratic, more human — and laser-focused on building capacity, not just compliance:

• Toolkits for day-to-day improvement
• Peer mentorship networks
• Mini-innovation grants or shared services
• Training that starts with listening
• Inclusive planning tables

What Research Tells Us

• A study of over 290 MSEs in Fiji confirmed that their success depends heavily on the enabling environment — not just individual effort (Lolesio, Srivastava and Vakhariya, 2024).
• Innovation scholars emphasize that resilience and adaptation in small tourism enterprises require targeted interventions like mentorship, tech support, and peer learning (Adam and Alarifi, 2021).
• In indigenous contexts like Fiji, one-size-fits-all models fail — we must design support systems that align with local values and rhythms (Gibson, 2012).

Survival is not a strategy — but survival mode is the reality for many tourism MSEs. To change that, we need to build capacity, not just compliance. Deliver tools, not just advice. Create communities, not just courses.