SME Performance and Tourism Development: An Empirical Study with Special Reference to Coastal Karnataka

Abstract

Small and Medium Enterprises (SMEs) are widely acknowledged as engines of economic growth, particularly in developing economies like India. In the tourism sector, SMEs play a crucial role in employment generation, regional development, entrepreneurial growth, and sustainable destination management. This study examines the relationship between SME performance and tourism development with special reference to Coastal Karnataka. The research explores how entrepreneurial attitude, management capability, tourism promotion, and local community perception influence SME performance and overall tourism growth. Using primary data collected from SMEs, tourists, and local residents, the study analyses the direct and indirect relationships between SME performance, economic development, tourist satisfaction, and local socio-cultural outcomes. The findings reveal that enhanced SME performance significantly contributes to economic growth and sustainable tourism development. However, internal and external challenges limit their potential impact. The study provides policy recommendations for strengthening SMEs to promote inclusive and sustainable tourism development.