CHAPTER 1 INTRODUCTION1.1 IntroductionThis research is conducted to study the factors that affect the sustainability of SMEs in Perlis. Scholarly interest in corporate sustainability has existed for a long time (e.g. Kassarjian, 1971). More and more research (e.g. Clemens, 2006, Hussey and Eagan, 2007) is beginning to focus specifically on the micro, small and medium enterprise (SME) context. “SME development seeks to balance growth in a way that aligns the creation of abundance: economically, environmentally and socially, and the introduction of products does not succeed in one region, nor perhaps in a market to the other side of the world” (Moore and Manring). Small and medium-sized enterprises (SMEs) are a group of actors who will have a major impact on the future of businesses and the planet. In fact, these organizations constitute a major part of the global economy. However, when it comes to the role of business in sustainable development, SMEs have been largely left out. Labonne (2006) compares large and small businesses in their use of environmental assessment tools. It found that small businesses were much less likely to examine their environmental impact, primarily due to the financial limitations and costs associated with designing tools for large, well-resourced companies. Condon (2004) also noted that employees' lack of financial knowledge and resources limited SMEs' adaptation to sustainable development practices.1.2 The problem statementDepartment for Culture, Media and Sport (1998), English Tourism Council ( 2000), Fanshawe (2000), Middleton and Hawkins. (1998), Starkey (2000) stated that "some of the arguments for promoting sustainable management practices in tourism SMEs rely on the construction of a complex...... middle of document... ... conclusion and recommendation. Chapter 1 covers the introduction of the research. It includes the introduction, research problem, rationale for the study, research question, research objectives, significance of the study, definition of terms, and organization of the report. The second chapter will be the literature review. From the literature analysis, we will know the main findings and suggestions from previous studies and apply these suggestions to this research as much as possible. Chapter three covers the explanation of the theoretical framework, research methodology, research approach, research topic, questionnaire, statistical methods and summary. Chapter four is about research findings (research output). The last chapter is the fifth, it is the research summary, recommendations, limitations and conclusions of the research..