Abstract

Though there has been substantial research on small and medium sized enterprises in tourism, information on access to financing for these businesses is limited. Given the importance of financing to the success and growth of a business, this report investigates the financing activities of small and medium-sized enterprises (SMEs) in tourism industries and assesses whether this group of SMEs faces unique financing obstacles. Using data from Statistics Canada’s, Survey on Financing of Small and Medium Enterprises, this report finds that Canadian SMEs in tourism industries, although less likely to request external financing, were significantly less likely to be approved for external financing compared to SMEs in non-tourism industries. SMEs in the accommodation industry, which required the most capital, had the most difficulty, receiving on average, less than half of the debt financing they requested in 2007.

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The Financing Activities of Canadian Small and Medium-sized Enterprises in Tourism Industries

Though there has been substantial research on small and medium sized enterprises in tourism, information on access to financing for these businesses is limited. Given the importance of financing to the success and growth of a business, this report investigates the financing activities of small and medium-sized enterprises (SMEs) in tourism industries and assesses whether this group of SMEs faces unique financing obstacles. Using data from Statistics Canada’s, Survey on Financing of Small and Medium Enterprises, this report finds that Canadian SMEs in tourism industries, although less likely to request external financing, were significantly less likely to be approved for external financing compared to SMEs in non-tourism industries. SMEs in the accommodation industry, which required the most capital, had the most difficulty, receiving on average, less than half of the debt financing they requested in 2007.