The Problems and Constraints Faced by Small Scale and Informal Business Community in the Tourism Industry: A Case Study from Ella, Sri Lanka

Abstract

Small scale and informal business sector in tourism is an effective mechanism which generates different advantages. It has come into existence as an important feature of peripheral tourist destinations. However, communities in such businesses confront different constraints which hinder their involvement. The main objective of this study was to analyze the issues and constraints faced by the small scale and informal business community of the Ella divisional secretariat division of the Badulla district. After a preliminary survey, this study area was selected. The total population (221) in the selected business sector was stratified into 13 categories and 90 respondents were selected by stratified random sampling method. Research techniques such as interviews and questionnaire surveys were employed for data collection. Qualitative techniques including the quotation and thematic analysis and quantitative techniques such as the methods of central tendency were employed for data analysis. The results of the study reveal that the small and informal businesses fall into 13 groups. The entrepreneurial characteristics identified were classified under the themes of the location and permanency of the business, source of capital and investment. The constraints were identified under 10 categories. Different measures have been introduced to eliminate such issues. However, there is a pressing need of carrying out an in-depth study to investigate these issues in detail and novel policies and plans are timely and significant to lessening the issues and constraints identified.