UNVEILING THE PATHWAYS TO SUCCESS: ENTREPRENEURIAL SKILLS, DIGITAL LITERACY, AND GROWTH MINDSET AS KEY DETERMINANTS OF MSME’s PERFORMANCE
Small and medium enterprises (SMEs) play a crucial role in contributing to the economy of East Java. However, to improve their performance and business sustainability in the era of information technology, SMEs need to improve their skills in order to create competitiveness by mastering entrepreneurial skills, increasing digital literacy, having a growth mindset, and having strong spirituality. The questionnaire was used to collect data from 360 respondents in the Culinary Sector SMEs in the Gerbangkertosusila Region. The data was processed using SEM and the results showed that entrepreneurial skills and digital literacy had a significant effect on business sustainability, but no significant effect on SME performance; and Growth mindset had a significant effect on business sustainability and SME performance, while Business sustainability had a significant effect on SME performance. Digital literacy had a significant effect on entrepreneurial skills and growth mindset had a significant effect on digital literacy. Moreover, spirituality moderated the effect of business sustainability on SME performance. In conclusion, strengthening digital literacy and entrepreneurial skills is crucial for the sustainability of SMEs. Therefore, government programs need to be strengthened and sustained to have a positive impact on SMEs.
Entrepreneurial Skills, Digital Literacy, Growth Mindset, Spirituality, Business Sustainability, SME Performance.