Exploring Crisis Vulnerability of Small and Medium Enterprises (SMEs):
Evidence from Sri Lanka’s Tourism Industry
Abstract
Survival of businesses is important to a country due to the immense
contribution they make towards the economy. SMEs have been identified as
a sector that is more vulnerable to crises. Thus, it is vital to explore
the factors that make SMEs vulnerable to crises. This phenomenological
study used the social constructivism approach to investigate the factors
that make SMEs more vulnerable to crisis, particularly tourism SMEs. The
sample consisted of 19 tourism SMEs that were purposively selected from
the Southern Province of Sri Lanka. The data were analyzed using
Interpretative Phenomenological Analysis (IPA) and through the
theoretical lens of resilience theory. The themes identified as factors
that tourism SME sector is more vulnerable to crisis due to its
dependence on unskilled employees, for being mostly home based, the
seasonal nature, and a crisis-prone industry. The findings of this study
may assist SME entrepreneurs and other stakeholders to arm themselves by
adopting proactive measures to deal with crises.