Village-Owned Enterprises (BUMDes) serve as a pillar of economic activities in villages, acting as both social and commercial institutions; however, many have yet to operate optimally. This study aims to examine the influence of variables such as business competence, entrepreneurship, and business innovation on the sustainability of BUMDes in Kuningan Regency, West Java. The research was conducted in November 2024 with a total of 117 respondents from 130 BUMDes in Kuningan, yielding a response rate of 90%. Descriptive statistical analysis was performed using SPSS software, while inferential analysis utilized Structural Equation Modeling with Partial Least Squares ((SEM-PLS) method through WarpPLS 8.0 software. The results indicate that business competence significantly affects both entrepreneurship and the sustainability of BUMDes, while business innovation also contributes significantly to entrepreneurship and sustainability. Furthermore, in indirect effect testing, entrepreneurship only plays a partial mediating role in the influence of business competence and business innovation on the sustainability of BUMDes. These findings emphasize the importance of developing business competencies and business innovations to enhance the performance and sustainability of BUMDes as an effort to support rural economic growth. The study's findings support the idea to improve the performance and sustainability of BUMDes, seriousness is needed from all parties, especially the government, to help BUMDes in improving business competence, business innovation and entrepreneurship.