Raheleh Hasannia - Faculty of Tourism, Eastern Mediterranean University, Famagusta, Cyprus Via Mersin ۱۰, Turkey
Hamed Rezapouraghdam - Faculty of Tourism, Eastern Mediterranean University, Famagusta, Cyprus Via Mersin ۱۰, Turkey

Inspired with their small size most of the Small and Medium Enterprises (SME) affected by the blurred physical boundaries of the universe and on-going technological enhancements areworking in an intense competitive environment. Derived from their specific characteristics (limited tangible and intangible resources) SMEs got no chance for surviving other than identifying their competency resources which might provide them both the chance ofcompetition and success. Developing countries where possess large amounts of human capitals are potential cases to benefit from the opportunity that SMEs provide for eradication of the unemployment. The experience and outcomes of the developed countries regarding the SMEs intourism industry (e.g. more than 90% of Australian tourism businesses are SMEs) defiantly can lead the developing nations to the wellbeing of their young job demanders. This paper aims to introduce the SMEs that are considered important segments of tourism and hospitality industryat one hand as well as the notion of competitive advantage which also is so crucial in service sector at the other. The authors hope to increase the attentions toward these phenomena byfollowing a two-fold objective: 1) introducing the SMEs as a good prescription for job creationand 2) suggesting the competitive advantage as a vital strategy for the success of these SMEs.

Competitive advantage, Developing countries, Hospitality, SMEs, Tourism