Exploring Entrepreneurial Innovation and Digital Transformation in Shaping Global Economic Development Trends

Abstract

Innovative entrepreneurship and digital transformation are key drivers of global economic growth. Moreover, these two factors ensure sustainable business practices in the current digital environment. However, many businesses, particularly small and medium enterprises (SMEs), continue to struggle to integrate digital technologies with innovative ideas to achieve sustainable economic growth and competitive business advantage. The results of this research aim to establish the effects of entrepreneurial innovation and digital transformation on the size of the global economy and to determine their effects on business performance, productivity, and the economy across various sectors of the business. For this study, a mixed-methods analytical approach was used, including a survey of 210 businesspeople, entrepreneurs, and managers in the information technology field. This was supplemented by existing economic data and sector reports. Quantitative analysis used innovation, digital technologies, and economic variables in business to perform regression, correlation, and performance evaluation of digital technologies. The study shows that businesses that use entrepreneurial strategies have improved operating efficiency by 31.4% and increased their competitiveness by 27.8%. Furthermore, businesses that have adopted digital transformation, i.e., the use of Artificial Intelligence (AI), cloud computing, and big data analytics, have improved the productivity of their business by 36.2% and improved customer engagement by 24.5%. Finally, the study reports a strong correlation coefficient of 0.84 between digital transformation and economic growth, indicating a strong, positive relationship. The research finds that entrepreneurial innovation and digital transformation promote economic sustainability, durable businesses, and the expansion of global markets. Strategic digital investment, innovation-oriented organizational culture, and technology-driven business ecosystems ensure the vitality of future global economic development.