Abstract
Micro, small, and medium enterprises (MSMEs) are risk takers though they perceive risks differently to others. MSMEs tend to commence and operate their businesses with limited capacities. Start-up and operating costs, cashflow management, minimal staff, and limited technology incorporation and reach are a few of the challenges these enterprises face. These challenges increase the daily risk for an MSME compared to a large business within the tourism industry. When natural and man-made disasters occur, the prevailing risks can be exacerbated. The repercussions of these disasters for MSMEs are unique to them due to their vulnerable capacities. The challenges that emerge from these disasters are linked to changes in the micro- and macro-environments. This conceptual chapter outlines the need for strong resilience building of MSMEs through improved policy formation and cooperation between governments and MSMEs at all levels.