Abstract: The role of SMEs is very large in supporting the economy of a country, including Indonesia. The existence of thousands of SMEs in Bali is expected to improve the welfare of the Balinese people. However, in reality, there are still many craft SMEs in Bali that have not been able to develop their business scale to be larger. This study was conducted to confirm the phenomenon and empirical findings of previous studies on the relationship between mindset and entrepreneurial sustainability. The integration of attitude, subjective norm, and PBC as mediators in the relationship between mindset and SME resilience is the novelty of this study. SMEs based on the creative economy in the Craft subsector in Bali are the population, and the research sample is the owners or leaders of SMEs. Proportional random sampling was chosen as a technique in determining respondents, and SEM-PLS is the analysis method. The findings show that a growth mindset is connected to resilience and the Theory of Planned Behavior (TPB) dimensions. Likewise, an entrepreneurial mindset affects the TPB dimensions, but not resilience. Strengthening mindsets can be a solution to SMEs' resilience in facing dynamics and the capacity to realize business sustainability.

Keywords: Entrepreneurship, Mindset, Resilience, Sustainability, TPB, SME, Craft

Pages: 380-392