Abstract
Micro, small, and medium enterprises (MSMEs) in the tourism and hospitality industry have contributed to the creation of unique and memorable experiences for tourists, as well as provided multiplier effects for the local community and government. However, many of these businesses do not expand and/or their owners have little desire to do so. With no intention of disparaging business owners who are content with their current operations and thus have no desire to expand their businesses, this chapter aims to identify the barriers faced by tourism and hospitality MSMEs that aspire to grow. This chapter concludes that barriers to business growth can be internal and external. Internal barriers may include human capital (both entrepreneurs and employees), working hours, and financial capital. In comparison, external barriers can include seasonality in demand, competition, infrastructure, socio-cultural norms and values, governmental policies, and economic mechanisms.