Abstract

This study examines the effect of business model innovation, product diversification, and government policy on business sustainability. This quantitative study uses the SEM-PLS path analysis method using the SmartPLS application. The population was all business actors (MSMEs) in the Jambi City tourism area. The sample was selected using the purposive sampling method with the following criteria: 2 years of business, financial reports' availability, and a clear Standart Operation Procedure or business model. There were 100 people obtained as the sample. The results found that business model innovation, product diversification, and government policy significantly and positively affected business sustainability. This research provides a view of transforming the traditional business model into an innovative business model.

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