Industry Canada Releases Financing Profile of Small and Medium-Sized Tourism Businesses
The Canadian Tourism Human Resource Council (CTHRC) is pleased to announce that the Small Business Branch of Industry Canada has released A Small Business Financing Profile focused on the tourism sector. The CTHRC was pleased to provide its expertise and advice throughout the development of the study, and Scott Meis, CTHRC’s Special Advisor on Evaluation and Research, is cited as an external reviewer of the study.
Small and Medium-Sized Enterprises in Tourism Industries — December 2011 provides a descriptive overview of SMEs in tourism industries and examines their differences compared with SMEs in non-tourism industries in terms of business and owner characteristics, access to financing, financing terms and conditions and obstacles to business growth.
The study reveals that SMEs in tourism are regarded as high risk investments by traditional lending institutions, putting them at a disadvantage in their ability to obtain financing when compared to SMEs in non-tourism industries.
The difficulties SMEs in tourism industries have in obtaining financing can have an impact on their ability to invest in their business, including investing in training for their employees. This in turn can amplify other human resource issues already prevalent in the tourism sector, such as the high rate of employee turnover and its associated costs.
Read the entire report from the Small Business Branch of Industry Canada at the following link:
Small and Medium-Sized Enterprises in Tourism Industries — December 2011