Profiling Tourism SMEs According to Owners' Support for Community

Abstract

This study profiles small and medium tourism enterprises (SMTEs) according to their level of support for local communities in order to investigate the relationship between such support and enterprise performance. Cluster analysis, chi-square, and MANOVA were used to explore data from 298 owners of SMTEs operating in South Australia. Results indicated that SMTEs are best grouped in two segments according to their level of support for community (Reluctants and Community Advocates). Segments can be differentiated by: 1) the number of family members working in the business; 2) the number of years the business has been in existence; 3) whether the owners have family members living in town; and 4) the type of business. Findings also demonstrate significant differences between segments in terms of business performance, with Community Advocates reporting greater levels of performance. As such, the findings have implications for scholars in tourism and entrepreneurial studies, and for tourism policy makers trying to support the sustainable development of regional tourism destinations.