The challenges of small and medium enterprises (SMEs) in tourism sector : a case study of Sihanoukville Province, Cambodia

Abstract

This research aims to study the challenges of Small and Medium Enterprises (SMEs) in Tourism Sector in Sihanoukville of Cambodia. The author used a mix approach of quantitative and qualitative approach to answer and analyze the research objectives. For survey, the population of this study were chosen from 114 business owners or managers of SMEs in tourism sector mainly hotels, guesthouses, restaurants, massage parlors, tour agencies, tour operators, and transportation companies to answer the questionnaires . The quantitative method was applied using questionnaire. The quantitative data collected from the survey were analyzed by using SPSS 16. For qualitative approach, 2 government officials who have been working in the Ministry of Economy and Finance and the Ministry of Tourism that specialized in the field were interviewed. The content analysis utilized. The result of this result shows that the decrease in tourists in Sihanoukville as the major constraints to the growth of their business followed by the rise of informal competitors. Cost of doing business ranked as the 3rd major constraint to the growth of SMEs. Also Access to finance and followed by unskilled worker are the problem accordingly. Law regulation and technology infrastructure were also the challenges for their growth. This study concludes that the informal competition, cost of doing businesses, access to finance, and compliance cost have the most negative effects on SMEs development. Addition the lack of human resources and technology infrastructure play roles in enhance and increase the productivities in operating SMEs.