Chan, Jin ORCID: https://orcid.org/0000-0002-6275-9763, Ma, Congling, Piterou, Athena ORCID: https://orcid.org/0000-0003-4138-113X, Teng, Feifei, Zhang, Xiangyi and Zhang, Yajun (2024) Entrepreneurship in a cultural heritage site: the entrepreneurial ecosystem of the tourist cultural cluster in the Ancient Villages of Southern Anhui. In: ISBE 2024 (Institute of Small Business & Entrepreneurship), 6th - 7th November, 2024, Sheffield.

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Abstract

World Heritage Sites (WHS) are locations rich in cultural resources where tourism development should be balanced with heritage conservation and residents’ needs. The conflicts between heritage and tourism development merit more attention in the case of China (Zhang et al., 2015). WHS status enhances the attractiveness of a tourism destination, while encouraging innovation in the design of new tourism products and marketing approaches (Cassel & Pashkevich, 2014). Although the importance of heritage in regional economic growth is acknowledged, the links between heritage and entrepreneurship have been under-explored. Heritage forms of entrepreneurship are not yet well understood, though heritage should be considered in entrepreneurial decision making as part of the historical and contextual factors that affect entrepreneurial behaviour (Ratten, 2023).

The research is based on the Ancient Villages of Southern Anhui (Xidi & Hongcun): inscribed in the UNESCO WHS list in 2000, they constitute an example of “living heritage sites” where local communities still live and work in protected buildings, renowned for their architectural style typical of Chinese late feudal society. Dwellings of exquisite craftsmanship embody the traditional Huizhou culture. Founded in the Song Dynasty, Xidi includes three ancestral halls, one archway, and 224 ancient dwellings built from the 14th century to the 19th century. Xidi architectural style is typical of ancient villages in the Ming and Qing Dynasties. Hongcun, built in AD 1131, includes 137 ancient buildings also in the Ming and Qing Dynasties’ style. Xidi & Hongcun were included in the UN World Tourism Organisation Best Tourism Villages list in 2021.

Heritage-based entrepreneurship, involving fields such as the craft economy and cultural tourism, may lack formalisation although it provides opportunities for the development of community-led micro enterprises and can empower local communities (Bhattacharya et al., 2022). Heritage can provide incentives for artisan, cultural and tourism forms of entrepreneurship: by making products that draw on the cultural traditions of a region or community, artisan entrepreneurs (craftspeople) can contribute to a more authentic tourist experience (Ratten et al., 2019).

The development of heritage-related ventures requires supports from actors in the community such as family, friends, and acquaintances (Ratten, 2023), while both public and private enterprises act as entrepreneurial support organisations providing different types of assistance across the stages of the entrepreneurial process (Bergman and McMullen, 2021). Entrepreneurial support is a structured activity which helps entrepreneurs access valuable resources (including financial and non-financial resources) that enable the formation of an independent venture and improve the likelihood of its survival and long-term growth (Ratinho et al., 2020). Creative industry entrepreneurs may also benefit from networking with their peers: although peers are competitors, they can be a valuable source of practical and emotional assistance as they have directly relevant expertise (Kuhn et al., 2015)

The study draws on the concept or cultural innovation cluster (Santagata, 2002), which provides a context for entrepreneurial activities in the research site. Cluster development is more pertinent to SMEs as they are more geographically routed and lack internal resources to innovate (Hervás-Oliver et al., 2021). Specifically, enterprises in the creative industries are small and reliant on local partnerships and networks (Jones et al., 2004). Funk (2014) noted that firms in networks with high geographical proximity benefit from more cohesive network structures. Brink (2003) explored how different forms of proximity can encourage innovation and growth. Hervas-Oliver & Albors-Garrigos (2009) emphasize the importance of absorptive capacity in benefiting from external resources.

Aims

The research has the following aims. Firstly, it seeks to develop a relational model for the study of entrepreneurial ecosystems developed in the cultural, creative and heritage industries. More, specifically, it aims to address how Social Network Analysis (SNA) methodology can be used to represent this relational model. SNA measures provide indicators that can help interpret the outcomes of the ecosystem. Secondly, the research aims to evaluate how and where entrepreneurs in cultural, creative and heritage tourism access develop their market and access resources such as funding and advice which are required in different stages of the entrepreneurial process. Finally, it is considered how entrepreneurial support organisations, such as Destination Management Organisationss (DMOs) can more effectively support entrepreneurs.

Methodology

Entrepreneurs in Xidi & Hongcun develop relationships to access resources such as finance and knowledge that would support their business ventures, while they also develop their client and supplier bases. Hence, the tourism cultural cluster in Xidi & Hongcun is perceived as a social network involving local and external actors and their linkages, in the form of collaboration, funding, advice, and value chain relations. According to Hoang and Antonsic (2003) network structure, governance and the content of network relationships are key factors when applying a network approach to entrepreneurship.

The study employs social network analysis (SNA) methodology to analyse the structure of the social networks in relation to the attributes of individual actors. A questionnaire survey was administered face-to-face in September 2023 with cultural tourism organisations (40 companies and one museum) located in Xidi and Hongcun WHS to collect information about organizational attributes and their linkages. Survey participants were identified from secondary data available from the local government and the Tourism Bureau of the county. The organizations are coded and classified according to their location and main area of activity, while each of the four relations is represented as a separate network. UCINET software is used to describe the characteristics of the overall network structure and the network position of individual actors so that actors with more influential roles can be identified. Network centrality and brokerage measures lead to the identification of boundary spanners (Yeniaras & Golgeci, 2023). Moreover, overall network cohesion and heterogeneity indicate how network structure can enable resource flows and creative ideas.

Contribution

The study aims to make a contribution to the debates on cultural, creative and heritage entrepreneurship in a rural, non-Western setting. Further, it aims to contribute to the literature on network approaches to entrepreneurship. Some of the preliminary findings are noted below:

(1) The funding network contains information about the source and destination of financial flows. In the funding network, participants mostly choose local banks and the government in Yixian County as providers. Considering such factors as funding security and stability, ease of borrowing and cost performance, they usually choose state-owned banks and rural financial institutions, while a few choose collective banks. In addition, local administrations concerned with cultural tourism provide financial support to cultural tourism organizations. In addition to funding institutions, there are also individual funders, such as family members.

(2) The value chain network includes the supplier and customer relationships of the surveyed organisation. In the value chain network, the overall network presents the following patterns: survey participants are more inclined to choose local retail companies and construction companies as suppliers, because these companies have a better understanding of the local market environment and architectural style, can launch cultural tourism products and services suitable for the local market environment, and also save on transaction and transportation costs. Firms prefer travel agencies and other organisations in Huangshan, the prefecture-level city where Xidi and Hongcun are located, as clients. The city has the role of a passenger transport hub, which can attract tourists and divert them to various scenic spots in the region. Moreover, the city has a greater economic potential, which can accommodate more cultural and tourism enterprises, leading to an industrial agglomeration effect. Huangshan Travel Agency can divert tourist groups to cultural tourism organizations in Xidi and Hongcun. When choosing technology companies, Internet companies and online travel agencies, most survey participants chose companies based in in China's economically developed cities such as Beijing, Shanghai, Hangzhou and Shenzhen. These cities have a developed economy, dense population, and large number of universities. They have a good R&D basis and can develop high-performing technology products.

(3) The advice network reflects the behaviour of an organization in accepting and givng advice. In the advice network, survey participants received most of the advice from the government, technology companies, Internet companies, schools and tourism management companies. Among them, the government and tourism management companies are mostly located in Anhui province, providing these enterprises with policy interpretation, business norms and other aspects of advice. Travel agencies located in Anhui Province also provide advice and help to survey participants. Schools, technology companies, Internet companies, cultural and creative companies, and dance art companies are highly professional, so they are often located outside Yixian County. If the cultural tourism enterprises to consult professional problems, need to look for external strength. In addition, cultural tourism organizations of the same type in Yixian County also actively exchange business experience with each other, demonstrating evidence of peer assistance..

Implications for policy and practice

There are implications regarding the geographical concentration of networks actors. Local conditions may explain the current geographical patterns. However, the funding network could benefit from wider diversification of participants as many small firms still rely on more personal networks (family and friends). Focusing on actors with a boundary-spanner role in the advice network could accelerate the flow of innovative ideas among less well-connected firms.

References:

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Bhattacharya, A., & Dutta, M. (2022). Empowering Heritage Entrepreneurs: An Experience in Strategic Marketing. Journal of Heritage Management, 7(2), 186-199.

Brink, T. (2018). Organising of dynamic proximities enables robustness, innovation and growth: The longitudinal case of small and medium-sized enterprises (SMEs) in food producing firm networks. Industrial Marketing Management, 75, 66-79.

Cassel, S. H., and Pashkevich, A. (2014). World Heritage and tourism innovation: Institutional frameworks and local adaptation. European Planning Studies, 22(8), 1625-1640.

Funk, R. J. (2014). Making the most of where you are: geography, networks and innovation in organizations. Academy of Management Journal, 57, 193–222.

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Hervas-Oliver, J.L., & Albors-Garrigos, J. (2009). The role of the firm’s internal and relational capabilities in clusters: When distance and embeddedness are not enough to explain innovation. Regional Science and Urban Economics, 9, 263–346.

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Ratten, V. (2023). Heritage Entrepreneurship: Future Trends. In: Ratten, V. (eds) Heritage Entrepreneurship. Palgrave Studies in Global Entrepreneurship. Palgrave Macmillan, Singapore.

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Item Type:	Conference or Conference Paper (Paper)
Additional Information:	ISBN for ISBE 2024 is 978-1-900862-36-3. - MP
Uncontrolled Keywords:	World Heritage Site, entrepreneurial ecosystem, tourist cultural cluster, heritage tourism, heritage entrepreneurship
Subjects:	G Geography. Anthropology. Recreation > GF Human ecology. Anthropogeography H Social Sciences > H Social Sciences (General) H Social Sciences > HD Industries. Land use. Labor
Faculty / School / Research Centre / Research Group:	Greenwich Business School Greenwich Business School > School of Business, Operations and Strategy
Related URLs:	Organisation Organisation
Last Modified:	09 May 2025 10:06
URI:	http://gala.gre.ac.uk/id/eprint/50355

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