INNOVATION AND ENTREPRENEURSHIP IN THE DIGITAL ECONOMY: TRENDS, CHALLENGES AND OPPORTUNITIES

Special Issue - Innovative Commerce: Bridging Business and Computer Applications (ICBBCA-2026) |PG Department of Commerce with Computer Applications, Mannar Thirumalai Naicker College, Madurai – March 2026| International Journal of Computer Science (IJCS) Published by SK Research Group of Companies (SKRGC)

Abstract

The rapid evolution of digital technologies has fundamentally transformed the landscape of entrepreneurship and business innovation. This paper examines the role of digital tools, platforms, and ecosystems in fostering entrepreneurial activity and driving innovation across industries. Drawing on a descriptive research methodology and primary data collected from 80 entrepreneurs, startup founders, and business professionals, the study explores how digital transformation enables new business models, accelerates market entry, and expands access to global markets. The research investigates key digital drivers including artificial intelligence, cloud computing, e-commerce platforms, and social media, and assesses their impact on startup growth, product development, and competitive advantage. Findings reveal that while digital adoption presents significant opportunities for innovation-led entrepreneurship, challenges such as digital skills gaps, cyber security threats, access to funding, and regulatory uncertainty continue to hinder sustainable growth. The paper concludes with strategic recommendations for entrepreneurs, policymakers, and academic institutions to harness the full potential of the digital economy.

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Keywords

Digital Economy, Innovation, Entrepreneurship, Start-ups, Digital Transformation, Artificial Intelligence, E-Commerce, Business Models, Technology Adoption, Competitive Advantage.