THE MULTIFUNCTIONALITY AND SUSTAINABILITY OF SMALL AND MEDIUM ENTERPRISES IN TOURISM-BASED RURAL COMMUNITIES

Oleg Petelca (), Ciprian-Constantin Pä‚trä‚uceanu () and Iurie Beè˜liu3 ()
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Oleg Petelca: Alexandru Ioan Cuza University of Iași, România
Ciprian-Constantin Pä‚trä‚uceanu: University of Oradea, România
Iurie Beè˜liu3: Alecu Russo State University of BălÈ›i, Republic of Moldova

Annals of Faculty of Economics, 2021, vol. 30, issue 2, 123-131

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.

Keywords: rural tourism; development; rural area: recreation; entrepreneurship; small and medium enterprises (search for similar items in EconPapers)
JEL-codes: L83 Q26 Z32 (search for similar items in EconPapers)
Date: 2021
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