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The Multifunctionality And Sustainability Of Small And Medium Enterprises In Tourism-Based Rural Communities

Author

Listed:
  • Oleg PETELCA

    (Alexandru Ioan Cuza University of Iași, România)

  • Ciprian-Constantin PÄ‚TRÄ‚UCEANU

    (University of Oradea, România)

  • Iurie BEȘLIU3

    (Alecu Russo State University of Bălți, Republic of Moldova)

Abstract

The economic impact of tourist activity depends largely on the character of the area or space where it is practised (e.g., developed, developing or less developed). It also depends on the administration or, in broader terms, management of this complex activity and finality through consumption. The latter is related to both customer satisfaction and the satisfaction of the travel agency providing services, to the degradation of certain traditions and the disturbance of the economic, social, cultural, demographic and environmental balance in local communities. The globalisation process and the technological evolution determine visible and behavioural changes because competitiveness is related to technological efficiency. Tourism can generate substantial income, thus contributing to regional development and dynamizing the labour market and companies activating in that sector. By allocating various funds, we can improve the quality of services and renovate accommodation facilities, which enhances the popularity of the location and increases income, implicitly. This paper approaches rural tourism and entrepreneurship within a microeconomic approach. It is motivated by the fact that the most common tourist activities are small and medium enterprises, which are not always sustainable enough businesses. Hence, awakening the entrepreneurial spirit is one of the most notable challenges for the actors involved in small and medium enterprise development in rural areas. This paper highlights the role and challenges of small and medium enterprises activating in the tourism field in rural areas. In addition, the paper proposes a way for overcoming the constraints and difficulties imposed by rural communities, based on the connection between the traditional rural community and a human network existing outside the traditional territorial community. This network extending beyond the traditional territorial border may be complementary to the rural community. In this context, strategic cooperation becomes relevant; it is the solution for overcoming the challenges faced by other industries, too. Furthermore, rural tourism allows producers to mobilise (on a wider scale) the local resources redeemed within the mono-farm activities. Thus, they may attain the goal of using and preserving their rural heritage.

Suggested Citation

  • Oleg PETELCA & Ciprian-Constantin PÄ‚TRÄ‚UCEANU & Iurie BEȘLIU3, 2021. "The Multifunctionality And Sustainability Of Small And Medium Enterprises In Tourism-Based Rural Communities," Annals of Faculty of Economics, University of Oradea, Faculty of Economics, vol. 30(2), pages 123-131, December.
  • Handle: RePEc:ora:journl:v:30:y:2021:i:2:p:123-131
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    References listed on IDEAS

    as
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    2. Antonietta Ivona, 2021. "Sustainability of Rural Tourism and Promotion of Local Development," Sustainability, MDPI, vol. 13(16), pages 1-7, August.
    3. Zain ul Abedin Janjua & Gengeswari Krishnapillai & Mobashar Rahman, 2021. "A Systematic Literature Review of Rural Homestays and Sustainability in Tourism," SAGE Open, , vol. 11(2), pages 21582440211, April.
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    Full references (including those not matched with items on IDEAS)

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    More about this item

    Keywords

    rural tourism; development; rural area: recreation; entrepreneurship; small and medium enterprises;
    All these keywords.

    JEL classification:

    • L83 - Industrial Organization - - Industry Studies: Services - - - Sports; Gambling; Restaurants; Recreation; Tourism
    • Q26 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Renewable Resources and Conservation - - - Recreational Aspects of Natural Resources
    • Z32 - Other Special Topics - - Tourism Economics - - - Tourism and Development

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