ABSTRACT
Because of their contribution to the economy, small and medium-sized enterprises (SMEs) have received increased attention from governments during recent years. They have been the driving force for economies, especially those of developing countries. Small businesses are also acknowledged as both the foundation and components of large enterprises. Tourism SMEs also play a significant role in the tourism industry, not only for the sustainability of the destinations they operate, but also because they provide opportunities for local subsectors in the industry. They have considerable effects on the socio-cultural life, sustainability and economies of the countries as well. Destination is an amalgam of products and services that come together to meet the needs and desires of tourists. Small and medium-sized tourism enterprises (SMTEs) are able to offer these products and services in an authentic and sustainable way. As local enterprises (local ownership and local procurement), these businesses make an important contribution to sustainable development of the destination. Besides, it is known that their negative environmental impacts are smaller than those of large enterprises. SMTEs can also lead to positive economic effects by ensuring that local people are employed within the tourism industry. As well as minimizing leakages, local entrepreneurship enhances the multiplier effect. In addition, SMTEs ensure that tourism expenditures are integrated quickly into the local economy. Besides their economic outcomes, social development can be experienced in destinations where SMTEs are more active (establishment of institutions such as schools and hospitals, the realization of infrastructure investments) as well as social prosperity. Increasing woman participation due to these businesses is also critical in terms of changing social life. In addition to the positive effects on the destination, there are some negative effects as well. Among these are the excessive increase in the number of enterprises, administrative insufficiency, falling prices and decrease in quality level due to the competition, socio-cultural corruption and an increase in the informal economy. In this chapter, SMTEs are explained within this conceptual framework, and the importance and effects of SMTEs, in terms of destinations, are emphasized.
