Growth of Small Scale Industries

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The issues and challenges faced by the small scale tourism industries are the main aim of this essay in the essay it is critically analysed the difficulties and problems faced by the small scale industry and a lot of research is done on the small scale industries and it is discussed and argued in the essay. It is said that small scale industry is a very vital part of the tourism industry and economically it contributes a lot to the economy which is being talked about. Issues like innovative way of planning should be used by the small scale industries and also the effect of government policies on the small scale tourism is being discussed in the study.

The aim of this essay is to critically explore the challenges and issues faced by the small tourism business. As we all know that tourism industry has a very significant percussion upon societies, environment and economies (Cooper 2005). According to Cooper (2005) “tourism directly or indirectly generates and supports 195 million jobs globally. This is equivalent to 7.6% of the world’s workforce and is forecast to raise over 250 million jobs in 2010. At the same time half of these jobs are in small or medium – sized enterprises (SMEs), the lifeblood of tourism”. According to Page and Conell (2006) the tourism industry generates more and more employees every year for the developing countries especially. Moreover it is defined as “Small and medium tourism enterprises comprise all businesses, which by their own definition, operate in the tourism industry and employ up to 100 employees and include sole operators not employing any staff. Specifically, micro businesses are those that employ between one and four workers, small businesses employ between five and 19 employees and medium businesses employ between 20 and 100 employees”(Breen, Seers, Jago and Carlsen 2005). It is a business in which there is no proper management structure and the services, facilities, market value and number of people working is generally small and it is run by a single owner or a group of people are the owner or owners of the business (Page , Forer & Lawton 1998). The challenges and issues faced by the small scale tourism industry are the change in policies regarding the business, a need in proper management structure, destination development and sustainability tourism development by the help of small scale business.

According to Wanhil (2000) there are three types of business large scale business, medium scale business and small scale business, in the large scale business which are equal to the standard of international hotels and have 100 or more rooms, medium scale businesses are those in which there are small or low cost hotels and then the small scale business include people renting rooms for reasonable price, small and low priced eating outlets and souvenir shops. The large scale business was not the best option for the growth opportunities , infrastructure , production , rate of foreign exchange and other economic benefits such as increase in earnings but on the other hand the small scale industry or the small hotels dealt directly with the customer so promotion costs were low and the other costs were low as well because of the use of the local market and local demand and supply connections because of this the rate of return was more and better than any international hotel or large scale business.

For the past two decades the policy makers concern have been the emergence of the small scale business in tourism development. Small scale business has been the factor for slow growth and innovation but then it is also considered as the backbone of the economic factor in the tourism sector as it is a very good source of income. Small scale business is responsible for a lot of vital reasons as it helps us to know the importance of social benefit , lifestyles of people , helps in promoting sustainable tourism as it generates a lot...
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