How Big, How Many? Enterprise Size Distributions in Tourism and Other Industries

Abstract

Tourism often is characterized as being dominated by small- and medium-sized enterprises (SMEs), a characteristic that leads to certain challenges for the sector. This research article examines the degree of the assertion of dominance by SMEs and whether tourism is different than other industry sectors. The distribution of enterprise sizes within specific tourism industries also is examined. The results indicate that the percentage of small firms in tourism is lower than that in the overall business sector and that the percentage of medium-sized tourism firms is slightly higher than in the overall economy. Recreation and entertainment firms display the most uniform dispersal of enterprise sizes, whereas the travel trade shows a very high concentration of SMEs. Some implications of these findings are suggested.