Further Inquiries on Growth and Failure of Small Tourism Firm in Malaysia
Small tourism firms (STFs) had been acknowledged by many scholars as a catalyst for tourism destination development as well as key success factors. Research on STFs started in the early 1980’s, where it has been indirectly seen in tourism entrepreneurship as well as destination developments. However, such studies on STFs only accomplish on theoretical and empirical aspects which focusing on classification of STFs characters that is similar to other small and medium enterprises. The gap exists when the classification made only referred to the firm who oriented on the manufacturing and production of products that is ‘homogeneity’ and formal. Undoubtedly, the existing literature does not literally cover the understanding of growth and failure of STFs especially in the perspective of financial aspects. Although some efforts had been done, the evaluations are still not comprehensive and fail in visualizing the accurate understanding of the existence of STFs and their contributions on tourism development. Previous research on small firm are focusing on several factors that influence the growth and failure of firms such as entrepreneur characters, firm characters, business operation practices, business environment, human resources management as well as governance initiatives. Financial aspects were also seen as a factor that can influence the growth and performance of small firms. However, lack of efforts was done in identifying a more comprehensive relationship with other aspects. The main objective of this paper is to recognize the prospects of financial aspects in further research related to growth and failure of STFs. The Systematic Literature Review approach was used to accomplish the purpose of this paper. Aspects like access to the loans, financial constraint, funding gap and financing preference were established in understanding more details on the financial influence towards the growth of STFs. These efforts were seen to give an effect towards the STFs developments as well as the types of initiative given by the government. The miscarriage in acknowledging the diversity of STFs environments will lead to misunderstanding on their behavior.
Keywords- small tourism firm, growth, financial capital, entrepreneurship.