Constraints to Growth in Rural Tourism Small Businesses

The literature on small business growth divides entrepreneurs into two categories according to the business strategies they adopt: those who own ‘lifestyle’ businesses and those who adopt an ‘entrepreneurial’ orientation. The former are considered less likely to have growth-oriented intentions than the latter. This paper searches for evidence in support of the assertion that growth potential depends primarily on the strategies adopted by entrepreneurs, rather than on the type of the business, the age of the business, or on other internal and external factors. This paper also investigates whether small businesses entrepreneurs in the tourism sector are more likely to be ‘lifestyle’ rather than ‘growth-oriented’ because of the characteristics of the tourism industry, especially in rural areas. The results of this study indicate that, although they are primarily lifestyle businesses, they do have growth aspirations although these are hampered by location and managerial considerations.