EVALUATING THE EFFICACY OF THE SOFTWARE STARTUP ECOSYSTEM IN SRI LANKA: THE ROLE OF ACCELERATORS, INCUBATORS, INVESTORS, AND GOVERNMENT

Abstract

The burgeoning software startup ecosystem in Sri Lanka holds significant potential to drive national economic growth and technological innovation. However, this ecosystem faces critical challenges that hinder its global competitiveness and scalability, including inadequate infrastructure, limited funding opportunities, and a scarcity of skilled talent. This research evaluates the efficacy of the Sri Lankan software startup ecosystem, emphasizing the pivotal role of incubators, accelerators, and government bodies. Employing a quantitative approach, the study identifies key success factors, challenges, and actionable strategies to enhance ecosystem performance. The research employs Partial Least Squares Structural Equation Modeling (PLS-SEM) to analyze data collected from stakeholders, including startup founders, employees, incubators, accelerators, and investors. The analysis revealed that advisory and mentorship, as well as corporate partnerships, had a statistically significant positive impact on the efficacy of the software startup ecosystem. In contrast, access to capital, innovation and R&D, and the regulatory environment did not show significant direct influence within the current Sri Lankan context. The study aims to contribute to the strategic development of Sri Lanka's software startup ecosystem, enabling it to achieve sustainable growth and align with global benchmarks.