SMEs in Tourism

Abstract

SMEs are gaining strength in the political agenda for support from the EU. A number of socio-political and economic reasons are frequently given, including:ideas, concepts, products and resources ■ SMEs employ flexible specialization strategies to enhance competitiveness ■ SMEs offer the social and economic laboratory where entrepreneurs can bebest trained ■ SMEs are more sensitive and responsive to market changes than large firmsdue to flat hierarchies. Hence they can adapt and change faster ■ Self-employment can reduce unemployment, particularly for under privilegedsocial groups (e.g.ethnic minorities,young people with little education, redundantmanagers in mid career, unemployed woman re-entering the workforce after childbirth)■ SMEs create clusters of value creation at the region and support multiplier effects■ Most of the economic benefits generated remain in the region rather than being exported■ SMEs often preserve local culture and character by using local resources ■ Owners/managers are self-motivated to survive, thus possessing superior incen-tives towards working ‘hard’ and ‘smart’.