Examining the Critical Success Factors of Startup in Thailand Using Structural Equation Model

Startup is a fast-growing business model by funding from investors, however, it also has a high failure rate and risk. This research aims to examine critical success factors of and their relations in Thai startups. Structural equation model is applied for studying causal relationships between factors by using factor analysis and multivariable regression analysis. Based on sixteen observed variables, the results show that there are four critical success factors of Thai startups, namely support partner, business model, market opportunity, and customer perspective. Especially, the factors of the business model and support partner have direct effects on potential and success in startups. This research is a knowledge framework which assists, not only young startups to succeed their business, but also investors to evaluate investments in startups. Moreover, the paper also provides a literature review which is useful for researchers in the area of a startup.