THE CHALLENGES OF SMALL AND MEDIUM ENTERPRISES (SMES) IN TOURISM SECTOR: A CASE STUDY ON SIHANOUKVILLE, CAMBODIA

Abstract

This research aims to study the challenges of Small and Medium Enterprises (SMEs) in Tourism Sector in Sihanoukville of Cambodia. The population of this study were from 187 business owners or managers of SMEs in tourism sector mainly hotels, guesthouses, restaurants, massage parlors, tour agencies, tour operators, and transportation companies. The quantitative method was applied using questionnaire. The quantitative data collected from the survey were analyzed by using SPSS 16. Besides, the government officer who specialized in the field were interviewed for qualitative method. 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.