This research aims to explore and analyze the challenges and dynamics faced by entrepreneurship and innovation in the digital era. The study employs a combination of qualitative and quantitative methods to provide a holistic understanding of the unique challenges and dynamics emerging in the context of technological change. The research is expected to offer in-depth insights into the dynamics of entrepreneurship and innovation in the digital age, helping entrepreneurs and stakeholders understand changes and adjust their strategies. The digital era has significantly transformed entrepreneurship and new businesses, with communication and information technologies accelerating business processes and opening new opportunities. The digitalization has made it easier for entrepreneurs to access information, global markets, and resources. However, this transformation also brings challenges such as rapid technological changes, global uncertainty, cyber security risks, and the need to adapt to new business landscapes. The study identifies and analyzes the impact of digital technology on business and innovation, highlighting how it has eliminated traditional boundaries and driven transformative changes. It emphasizes the importance of innovation in the digital age, including the integration of technology into business strategies, the adoption of innovation culture, and considerations of sustainability and social responsibility. The research also examines the strategies used by small and medium enterprises (SMEs) in the digital age, such as leveraging e-commerce, data-driven decision-making, and enhanced customer experiences. It discusses the benefits of digital technology, including cost reduction, flexibility, error reduction, faster response times, and improved operational efficiency. The study further explores the opportunities and challenges of e-commerce and online presence, noting the increased competition and the need for effective marketing and customer engagement. It highlights the importance of digital skills, financial management, and cybersecurity in the digital era. Finally, the research provides strategies for successful digital entrepreneurship, including continuous innovation, deep market and customer understanding, and wise risk management. The conclusion offers valuable insights for policymakers, entrepreneurs, and academics to navigate the complex challenges and opportunities of the digital age. **Keywords:** Entrepreneurship, Innovation, Digital Age, Challenges, Business Transformation.This research aims to explore and analyze the challenges and dynamics faced by entrepreneurship and innovation in the digital era. The study employs a combination of qualitative and quantitative methods to provide a holistic understanding of the unique challenges and dynamics emerging in the context of technological change. The research is expected to offer in-depth insights into the dynamics of entrepreneurship and innovation in the digital age, helping entrepreneurs and stakeholders understand changes and adjust their strategies. The digital era has significantly transformed entrepreneurship and new businesses, with communication and information technologies accelerating business processes and opening new opportunities. The digitalization has made it easier for entrepreneurs to access information, global markets, and resources. However, this transformation also brings challenges such as rapid technological changes, global uncertainty, cyber security risks, and the need to adapt to new business landscapes. The study identifies and analyzes the impact of digital technology on business and innovation, highlighting how it has eliminated traditional boundaries and driven transformative changes. It emphasizes the importance of innovation in the digital age, including the integration of technology into business strategies, the adoption of innovation culture, and considerations of sustainability and social responsibility. The research also examines the strategies used by small and medium enterprises (SMEs) in the digital age, such as leveraging e-commerce, data-driven decision-making, and enhanced customer experiences. It discusses the benefits of digital technology, including cost reduction, flexibility, error reduction, faster response times, and improved operational efficiency. The study further explores the opportunities and challenges of e-commerce and online presence, noting the increased competition and the need for effective marketing and customer engagement. It highlights the importance of digital skills, financial management, and cybersecurity in the digital era. Finally, the research provides strategies for successful digital entrepreneurship, including continuous innovation, deep market and customer understanding, and wise risk management. The conclusion offers valuable insights for policymakers, entrepreneurs, and academics to navigate the complex challenges and opportunities of the digital age. **Keywords:** Entrepreneurship, Innovation, Digital Age, Challenges, Business Transformation.