Hospitality SME innovation: responses to multifaceted crises

Abstract

PurposeThis research investigates the multifaceted effects of Covid-19, Brexit and climate change on Small and Medium-sized Enterprises (SMEs) in the hospitality sector. Specifically, the authors evaluate the main opportunities, challenges and implications that hospitality businesses face in times of crises, and innovate as a response.Design/methodology/approachThe research adopts a mixed methods approach firstly analysing quantitative data from the Business Insights and Conditions Survey (BICS). Second, qualitative where data are gathered from interviews with a range of hospitality SMEs. The data are analysed independently and then triangulated to gain a deep understanding of the issues faced by hospitality SMEs and their responses.FindingsThis research contributes to knowledge on the impact of economic challenges on the hospitality sector. This research underlines that hospitality businesses face multiple challenges. The findings show that sector has responded with innovations to meet requirements and regulations, some which were forced upon the industry due to changing regulations and some unforced innovations based on the strategic intentions and entrepreneurialism of the business owners.Originality/valueThe paper embeds the pandemic with Brexit and climate change challenges, identifying two distinct types of innovation as SME responses in the hospitality sector. Survival in the hospitality industry is reliant upon adaptations, some brought about by the pandemic and others by Brexit and climate change.