Traditionally CBT is seen as a way in which private developers or government planners can interface with the community in the process of tourism development. This involves local residents and communities not simply as the ―nucleus of the tourism product‖ (Simmons, 1994, p. 98) but as active participants in the process of development. The level and nature of community involvement in tourism development varies dramatically, from degrees of tokenism to full community control (Arnstein, 1969; Connor, 1988; Tosun, 2006). Taking a social-economy approach to CBT moves the role of the community from one of participant in a process enacted by private or government interests to one of entrepreneurial instigator. This independent development of the social economy offers community members a greater degree of autonomy and control compared to forms of top-down tourism development typified by partial forms of participation.
There are several ways to describe the nature and form of the social economy. According to Quarter, Mook, and Richmond (2003), the social economy can be divided into three broad types of organizations or enterprises: public-sector nonprofits, market-based social organizations, and civil-society organizations. These three types of social-economy enterprises cover a range of connections to traditional markets, draw on different revenue sources, and provide a variety of
services. At their core, each of these organizations is focused on services to members above profits, has some degree of volunteer participation, and is driven by social objectives. For example, public-sector nonprofits are related to government agencies yet draw funding from a mix of sources, including grants and private donations. Hospitals and universities fall into this category, as they operate at a distance from governments yet are largely supported by tax dollars. Marketbased social organizations include nonprofit or cooperative organizations, such as credit unions and general service providers such as the YMCA. For these organizations, revenues are generated from the market and surpluses are either returned equally to members or reinvested in the organization. The third category comprises civil-society organizations such as religious groups, unions, and membership-based services. These organizations operate by membership fees or donations to serve a more narrowly defined group or purpose. This broad typology of social-economy enterprises should be considered as one defining characteristic—there are many types and degrees of implementation of the social economy. The following section outlines specific roles where social-economy enterprises can be used to realize rural CBT, first by acting as a support, through developing business capacity and providing access to capital, and second as a vehicle for direct product or service delivery.
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