DISRUPTIVE INNOVATION IN THE DIGITAL ECONOMY AND THE STRATEGIC CONTRIBUTIONS OF ENTREPRENEURSHIP TO SUSTAINABLE BUSINESS DEVELOPMENT

Abstract

Innovation and entrepreneurship are increasingly recognized as central drivers of transformation in the global economy. The rise of disruptive innovation, where emerging technologies and novel business models challenge established firms, has reshaped industries such as retail, transportation, finance, and healthcare. Entrepreneurs play a critical role in this process by using agility, creativity, and risk-taking to identify market gaps and deliver solutions that traditional firms are often too slow to adopt. Technologies such as artificial intelligence (AI), blockchain, and the Internet of Things (IoT) are particularly influential, enabling efficiency, transparency, and personalization while creating new market opportunities. However, the potential of disruptive innovation is accompanied by significant challenges. Established firms frequently resist change due to organizational inertia, while entrepreneurs must navigate regulatory uncertainty, limited access to funding, and consumer hesitancy in adopting new products or services. At the same time, ethical and social issues such as job displacement from automation, privacy concerns related to data-driven technologies, and the precarious nature of gig economy employment raise questions about sustainability and fairness. This paper examines the dynamics of disruptive innovation and entrepreneurship by analyzing the role of emerging technologies, entrepreneurial strategies, and the obstacles faced in transforming industries. It emphasizes the importance of fostering a culture of innovation, investing in research and development, embracing digital transformation, and prioritizing ethical considerations. The study concludes that disruptive innovation is not only a technological advancement but also a transformative force that redefines industries and creates pathways for sustainable growth.