Small Business Performance in Urban Tourism

Abstract

Research findings indicate that the successful performance of small businesses is an important determinant of regional development. Successful business performance is affected by a number of firm-specific factors including human and social capital. Although, small and medium firms comprise the vast majority of the tourism production system, research on small business performance in tourism is rather limited. Drawing on recent advances and empirical evidence from enterpreneurship and small business literature we control first, for the role of human and social capital and second, for the role of owners'/managers' perceptions of place attractiveness over small business performance. We hypothesise that such perceptions should have specific effects on tourism business performance. Analysis is based on cross-sectional data gathered from face-to-face interviews with small tourism businesses owners/managers in Patras, Greece.