<![CDATA[This research aims to develop a theoretical proposition for the business performance of SMEs in urban areas. Urban areas are highly strategic as they are the easiest to reach for cultural and policy changes. Therefore, this study examines how urban communities manage SMEs. Urban areas compete to provide education and training for developing SMEs and even digital start-up businesses. Therefore, it is crucial to conduct a thorough evaluation of the program's effectiveness. The economic sector must address the problem of income and welfare inequality among the urban poor. We used a quantitative research method to analyze the direct and indirect influence of digital literacy, business skills, and digital marketing on the business performance of SMEs in urban areas. We analyzed the test data using smart PLS. The modelingWe bootstrap the modeling results using the goodness of fit criteria to generalize them to urban business development in developing countries. results show that digital literacy, business skills, and digital marketing are the main predictors of the business performance of SMEs in urban areas. This research also explains theoretical measurement factors for future researchers and describes, explains, and measures the business performance of SMEs in urban areas based on this theoretical study. The results of this research succeeded in testing eight hypotheses and rejecting one, namely that the influence of digital literacy on business development was not significant. Future researchers can further develop this research empirically using exploratory factor analysis or confirmatory factor analysis, utilizing a larger population and sample size.]]>
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