Guidelines for Improving the Sustainable Business According to Sufficiency Economy Philosophy of SMEs in Lampang Lumphun and Chiang Mai

Abstract

The purposes of this research were 1) to verify the validity of the structural equation model of developing business to be sustainable according to Philosophy of Sufficiency Economy, and 2) to study the causal factors of developing business to be sustainable according to Philosophy of Sufficiency Economy by using quantitative research. The sample group was 376 entrepreneurs in Lampang, Lamphun and Chiang Mai. The developed structural equation model consists of six latent variables and thirteen observed variables. The data were analyzed by statistical package. The results of this research were concluded as follow: 1. The validity of the structural equation model of developing business to be sustainable according to Philosophy of Sufficiency Economy is consistent with empirical data Chi-Square equal to 1851.69, the P-Value 0.0240 on degrees freedom equal to 950, ค่า RMSEA values equal to 0.0346, the value χ2/df was 1.95, the GFI was 0.94, and the AGFI was 0.92 2. The causal factors of developing business to be sustainable according to Philosophy of Sufficiency Economy revealed that factors affecting the most was moral (comprising patience and honesty), followed by knowledge (comprising business knowledge and understanding of business
reality). Moreover, both moral and knowledge are influenced indirectly affecting business development to be sustainable by though rationality, modesty and immunity.