This research attempts to achieve three objectives. The ﬁ rst is to identify the external factors that affect the growth of infant software development companies. Se-condly, we wish to identify the most signiﬁ cant factors. The third is to identify the relationship of ﬁ rm’s suc-cesses and failures on most signiﬁcant factors. A ques-tionnaire was prepared to collect data. The sample was selected from among the software companies started between the year 2000 and 2006 having at least one local project completed. Unavailability of IT workforce, telecommunication, electricity, acknowledging the local products and tax holiday schemes were identiﬁed as the most critical for the growth of startup software ﬁrms. It is recommended to expand the IT training capacity in the country to produce required professional workforce. Software development centers can be setup in the vicini-ty of such training centers to get capable students on a part-time basis. The government can provide an encouraging environment with the infrastructure in place and incentives for startups.
Keywords: Software Industry, Startup Software Companies, Critical Success Factors
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Dept of Computer Science & Engineering
University of Moratuwa, Sri Lanka
Sri Lanka Institute of Information Technology