Small and Medium Enterprise in Tourism

As its name indicates, the small and medium-sized enterprises (SME) refer to those businesses of which the scale (outputs, sales, or personnel) fall below certain limits. The threshold for the business size, however, varies across different industries. SMEs exist because certain activities are unsuited to large firms, such as those requiring quick adaption to changing conditions, close attention to personal detail, or supervision. Such activities would not be economical for large firms to pursue.

Large firms permit and protect the existence of small firms, as a matter of public relations, under a price umbrella held over the industry. The establishment of an SME is very effortless, and many hopeful would-be business people commence business operations every year, leading to the existence of many small firms at any time. Some small firms begin operations because the bigger firms have not managed to offer such products and/or services; however, in time, such firms will be driven out of...