Abstract:
Small and Medium Enterprises (SME) can be identified as an effective application for the economical development of a country through sustainable tourism development. Development of SME sector in Sri Lanka, positively correlates with the performance of national economy. Moreover,developing and developed countries, gain massive advantages from SMEs. According to the national statistics, there is a significant contribution to national income through tourism businesses in coastal areas in Sri Lanka. There were limited studies related to SMEs conducted in coastal areas in Sri Lanka. There is lack of theoretical findings for the decision making in eco hospitality constructions (EHC) in Sri Lankan context. The objectives of the study focus on identifying small medium entrepreneurs's opinion on the effect of existing factors in decision making about constructing EHC and identifying other themes which influence in decision making on constructing EHC by small-medium entrepreneurs in Hikkaduwa, Sri Lanka. In order to achieve the objective of the study, researchers selected forty SME owners who involve in the hospitality sector in Hikkaduwa area using the convenient sampling technique. Collected data were analyzed by employing thematic analysis. The results proved that selected all dimensions: Economy; social and culture; technology; ecological environment and legal environment had an influence on decision making in EHC. Moreover, the researchers identified five subthemes (factors): desire; knowledge; nature of the business; competitors and modern trends which are categorized into two major themes as internal and external. The study suggested recommendations under three categories as government, SME owners and researchers.
