Factors Relationship the Success of a Small Contractors Business (One Million Registered Capitals to Two Million Baht) In Khon Kaen Province

Abstract

This study examines the factors relationship the success of small scale construction contracting businesses by analyzing the relationship between external environmental factors (PESTEL analysis) and the success of these businesses, specifically those with registered capital of one to two million baht, in Khon Kaen province. A total of 96 firms were included in the sample, which was randomly selected using Taro Yamane's formula with a 95% confidence level. The research hypothesis posits that external environmental factors, as delineated by PESTEL analysis namely, politics, economic conditions, sociocultural factors, digitalization, weather or environmental factors, and legal aspects are correlated with the success of small-scale construction businesses focused on building accommodation structures. Pearson’s Correlation Coefficient was employed to determine the correlation coefficient, and data was collected from a group of volunteer small-scale construction business operators within      Khon Kaen province. The results demonstrated a significant correlation between the external contextual factors (PESTEL analysis), with a p-value of 0.001, thus supporting hypothesis H₁ as the value is less than 0.05 (α = 0.05). These findings indicate that external contextual factors (PESTEL analysis) are strongly and positively correlated with business success. This insight can be instrumental in understanding the influential factors that promote business success and can aid in aligning strategies with the operational or investment context of the construction industry. The researchers anticipate that if construction contractors apply the findings of this research, it could substantially enhance the performance of their construction businesses.