Abstract:

This study examines how digital entrepreneurial skills and growth mindset affect business performance of Generation Z entrepreneurs in Indonesia, with entrepreneurial burnout as a mediating factor. Using a quantitative survey of 100 Gen Z entrepreneurs, we applied Partial Least Squares Structural Equation Modeling (PLS-SEM) with 5,000 bootstrap resamples. Constructs (digital entrepreneurial skills, growth mindset, entrepreneurial burnout, and perceived business performance) were measured with validated Likert scales. Results show that both digital skills and growth mindset have significant positive direct effects on performance, and each is significantly negatively related to burnout. In turn, higher entrepreneurial burnout significantly predicts poorer performance. Mediation tests indicate that entrepreneurial burnout partially mediates the effects of digital skills and growth mindset on performance (all indirect confidence intervals exclude zero). In sum, Gen Z entrepreneurs with higher digital capabilities and a stronger learning-oriented mindset experience less burnout and thus achieve better venture outcomes. Theoretically, these findings extend entrepreneurship literature by linking digital competencies and psychological resources to performance outcomes. Practically, the results suggest that Gen Z entrepreneurs and support organizations should emphasize digital skills training and growth-mindset development (e.g. through targeted education and coaching) to enhance venture success and well-being. Appropriate policies might similarly integrate technical and psychosocial support to sustain youth entrepreneurship.