18K11843, Research contributing to the improvement of labor productivity in the small-scale inn industry, This study investigated the labor productivity of small-scale inns, which are often in the accommodation industry with capital of less than 10 million yen, which accounts for 60% of the accommodation industry, to determine the factors behind their low productivity and the direction of improvement. The research was based on field research, including analysis of financial statements and interviews with managers. As a result, it was concluded that the main factors defining labor productivity are not superficial issues such as facilities and labor efficiency, but that in small businesses where only family members invest, the joint and several guarantee system using assets as collateral and many management deposits induce low profitability and insolvency, resulting in low productivity. In order to improve this situation, in addition to revising the credit law, it is necessary to improve profitability by developing new demand and creating a scheme to encourage non-family members to invest.