Evaluating Factors of Small and Medium Hospitality Enterprises Business Failure: a conceptual approach

The aim of this paper is to present a comparison between macro and micro economic factors as they are suggested by the current literature in corporate failure field. Present study answers two research questions, firstly which the causes of corporate bankruptcies in tourism are, and secondly which metrics could help more on effectively predict a corporate failure. Based on a conceptual approach authors analyze and collect different macro and micro economic factors. Results indicates how strongly the various factors affect the quantity and intensity of bankruptcy applications and suggestions are given on how different models could be developed to predict the risk of bankruptcy in a macro or micro aspect. This is one of the first studies that investigates the effectiveness of different types of Corporate Failure metrics, which has, until now, suffered a dearth of conceptual studies in the field, especially in the context of national economies due to the economic recession.