<![CDATA[The rapid development of the digital economy requires Micro, Small, and Medium Enterprises (MSMEs) to adapt to technological advancements in order to maintain business sustainability amid increasingly competitive business conditions. However, many MSME owners still have limited self-efficacy and digital literacy, which affects their ability to manage and develop their businesses sustainably. This study aims to analyze the influence of Self-Efficacy and Digital Literacy on Business Sustainability in the Digital Economy Era among MSME owners in Sukabumi City. This research employed a quantitative method using descriptive and associative approaches. The population consisted of MSME owners in Sukabumi City, with a sample of 135 respondents selected through purposive sampling. Data were collected using a Likert-scale questionnaire and analyzed using Structural Equation Modeling–Partial Least Squares (SEM-PLS) with SmartPLS version 3.2.9. The results revealed that Self-Efficacy had a positive and significant effect on Business Sustainability, with a path coefficient of 0.215, a T-Statistic of 2.660, and a P-Value of 0.008. Digital Literacy also had a positive and significant effect on Business Sustainability, with a path coefficient of 0.716, a T-Statistic of 9.533, and a P-Value of 0.000. Furthermore, the R-Square value of 0.840 indicates that 84% of the variance in Business Sustainability is explained by Self-Efficacy and Digital Literacy, while the remaining 16% is explained by other variables outside this study. The findings also indicate that Digital Literacy is the most dominant variable influencing Business Sustainability. Therefore, improving self-efficacy and digital literacy is essential for MSME owners and policymakers to support sustainable business performance in the digital economy era.]]>
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