This research aimed to develop a new model for evaluating and predicting the sustainability of Jakarta’s small and medium-sized enterprises (SMEs). To achieve this objective, a total of 145 SME owners in the city were surveyed, gathering information on the sustainability of the businesses. The data obtained underwent processing using a variance-based structural equation model facilitated by the Partial Least Squares (PLS) application. The findings showed that several factors, including the adoption of new technology, the use of digital marketing, the digital literacy of owners, enhancement of product quality, business location, pricing strategy, and service quality, influenced the newly proposed model of SMEs’ business sustainability. Additionally, the research showed that implementing digital marketing had the most significant impact on SMEs’ sustainability. This underscored the crucial role of digital marketing literacy for owners in achieving high business performance while ensuring sustainability. The implications derived from the results focused on the need to enhance and reinforce digital literacy among SME owners. This was achieved through training programs that addressed data analytics implementation and leveraging the internet to support online product marketing and sales.