Innovation, entrepreneurship, and SMEs in tourism pt 2

small business

firm revenue (ranging from $1 million to $50 million) and by employment (from 100 to 1,500 employees)

small business administration (SBA)

only cabinet-level federal agency fully dedicated to small business and provides counseling, capital, and contracting expertise as the nation's only go-to resource and voice for small businesses

lifestyle entrepreneurs

motivated by quality of life, main priority is life rather than profit

entrepreneurship 

 involves and act by a motivated individual who innovates by creating value through recognizing an opportunity and converting it into a viable product or service

benefits of franchising 

startup assistance, training, proprietary knowledge, merchandising, marketing/branding/rights to the logo, instant recognition, trademarks, purchasing power

cons of franchising

cost, brand regulation and lack of creative liberty, Loss of innovative edge, Oversight and control, Contracts and commitment

strategic advantages of SMTEs

entrepreneur’s motivation, market niche advantages, personal relationship with enterprise stakeholders, family involvement, flexibility and reaction, continuity

strategic disadvantages of SMTEs

lack of economics of scale, informal management, traditional approaches/reluctance to change, knowledge and qualification hurdle, delegation and leadership hurdle, finance hurdle, personal relationships, family involvement