Entrepreneurship is the catalyst for economic growth, stimulating innovation, creating jobs, and turning ideas into successful ventures. This study investigates the role of entrepreneurial mindset and innovation capacity in achieving entrepreneurial success. We reviewed the existing literature to deepen the understanding of the concepts and established the study’s theories. Additionally, we used quantitative research and structured questionnaires to gather data from 103 individual entrepreneurs across different sectors. The main goal of the research was to establish how growth and fixed mindsets, as well as technical and non-technical innovation skills, affect the performance of entrepreneurs. We also conducted a critical data analysis using statistical techniques, like regression analysis, descriptive and correlation statistics, through IBM SPSS software. Results revel that a growth mindset has powerful positive impacts in enhancing entrepreneurial success by fostering innovation, creativity, and adaptability, while a fixed mindset has adverse impacts. Moreover, technical and non-technical innovations both play innermost roles, with non-technical skills such as leadership and organizational adaptability as key drivers. These results provide actionable insights for policymakers and entrepreneurs, emphasizing the importance of cultivating growth mindsets and leveraging innovation capacities to stay competitive in dynamic markets.