Entrepreneurs in Survival Mode: Lessons from Fiji for Aruba's Small Tourism Businesses

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.

Survival-Mode

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.

What surprised me most was how often innovation was talked about at the top, but invisible at the bottom.

As part of a group research project I 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. Many entrepreneurs had strong ideas and ambition, but lacked digital access, support networks, or meaningful involvement in destination planning. They weren't underperforming because of personal limitations — they were operating within systems that didn't allow them to thrive.

One entrepreneur told us:

"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. Survival mode demands energy that could otherwise fuel creativity.

In tourism economies like Fiji or Aruba, that's a lost opportunity.

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

Connecting the Dots in Aruba

I've seen similar dynamics play out in Aruba's micro-destinations:

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 they lack help with business planning, licensing, or digital marketing.
• ●The area struggles with inconsistent visitor flow and minimal evening economy, making it difficult for businesses to plan ahead.

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

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. It was the kind of place where locals strolled, socialized, and spent their money, keeping the economy vibrant and rooted in community.

But that's changed.

• ●The introduction of the tram system, while environmentally progressive and visually appealing, 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.
• ●As foot traffic patterns shifted and locals stopped frequenting the area, many businesses closed or were replaced by shops targeting short-term, price-sensitive tourists.
• ●What followed was a race to the bottom, price wars, repeated product types, generic souvenirs and very little investment in long-term brand or experience development.

Today, despite heavy cruise traffic, the energy has faded. There's little connection between guest and place, few reasons to linger, and almost no sense of identity tied to Aruba's cultural narrative.

Yet the bones of a vibrant destination remain — beautiful architecture, walkability, proximity to the port, and a history worth reimagining.

The challenge now is to reclaim Oranjestad's core:

• ●Not by returning to the past, but by blending heritage, culture, and commerce into something fresh.
• ●By welcoming both locals and visitors through experiences, not just retail.
• ●And by supporting small business owners to innovate beyond price competition and into storytelling, service, and shared value.

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

• ●Tourists often say the area looks and feels the same as any upscale U.S. beach town.
• ●Most shops sell identical souvenirs or jewelry, often with minimal local identity or interaction.
• ●Businesses operate independently with no coordinated storytelling, shared experiences, or destination synergy.

But just a short drive or bike ride away, the tone shifts.

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.

They're not walkable for most tourists, and they're rarely recommended by front desks or included in hotel materials.

So while Palm Beach may be full of activity, it's underdeveloped in depth — in connection, creativity, and character.

The opportunity?

• ●Build bridges between the high-rise strip and the creative outskirts.
• ●Curate alternative routes, promote local businesses in hotel channels, and co-design off-strip experiences.
• ●Help Palm Beach move beyond the transaction — and toward transformation.

Too often, MSEs are:

• ●Excluded from planning discussions.
• ●Left behind by digital transformation.
• ●Burdened by red tape that offers no developmental return.

The result? Many stay small, stagnant, and under the radar — even when they have something unique to offer.

What would support actually look like? Or what it should be!

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.

Here's what would help move from survival to strategy:

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

Innovation grows when survival isn't the goal

We can't expect small businesses to innovate while they're busy just surviving.

That's not a criticism of the entrepreneurs — it's a challenge to the systems around them. Tourism growth is only meaningful if it's felt on the street level — where guests explore, eat, shop, and connect.

What research tells us and what we should do

Academic research backs up what we've seen on the ground.

• ●A study of over 290 MSEs in Fiji confirmed that their success depends heavily on the enabling environment — not just individual effort. Without access to markets, training, and support systems, even highly motivated entrepreneurs struggle to grow (Lolesio, Srivastava and Vakhariya, 2024).
• ●Innovation scholars also emphasize that resilience and adaptation in small tourism enterprises don't just "happen" — they require targeted interventions like mentorship, tech support, and peer learning (Adam and Alarifi, 2021).
• ●In indigenous contexts like Fiji, entrepreneurs often prioritize community obligations and long-term trust over short-term growth. That means one-size-fits-all models fail, and we must design support systems that align with local values and rhythms (Gibson, 2012).

The same lessons apply to Aruba.

Survival is not a strategy — but survival mode is the reality for many tourism MSEs.

To change that, we need to rethink how we define "support":

• ●Build capacity, not just compliance.
• ●Deliver tools, not just advice.
• ●Create communities, not just courses.
• ●Center the entrepreneur's lived experience, not just economic indicators.

Only then can we unlock the real innovation potential that's already alive — on the street, in the market stall, and behind the counter.

The Common Thread?

In each case, the problem isn't a lack of potential. It's a lack of:

• ●Coordinated support systems
• ●Strategic visibility
• ●Access to resources and networks
• ●Inclusive planning processes

Let's Talk

Are you a small tourism business owner? Or do you support one?

• ●What makes it hard to think beyond the daily grind?
• ●What kind of support or training would actually help?
• ●Have you seen programs that really worked?

References

Alberts, G., Carmona Iglesias, D., Yuan, W. and Lacle, R., 2014. Exploring the Entrepreneurial Capacity to Innovate: Micro and Small Enterprises in Nadi and Port Denarau. Group Research Project, NHTV Breda University of Applied Sciences.

Lolesio, S.S., Srivastava, R. and Vakhariya, S., 2024. Factors influencing the success of micro- and small enterprises: Evidence from Fiji. Journal of the International Council for Small Business.

Adam, N.A. and Alarifi, G., 2021. Innovation practices for survival of small and medium enterprises (SMEs) in the COVID-19 times: The role of external support. Journal of Innovation and Entrepreneurship, 10(1), pp.1–22.

Gibson, C., 2012. Geographies of tourism: critical research on capitalism and local livelihoods. Progress in Human Geography, 34(4), pp.527–534.