Digital Innovation Development Policy to Increase SME Entrepreneurship Capability in Disruption Era

In creating new entities and more effective use of innovative capabilities, expertise, and skills, digital technology in human life is a hallmark of modern society. Some people feel dependent on the internet, including the entrepreneurial activities of Small and Medium Enterprises (SMEs) in utilizing digital information technology innovations to run their businesses, especially in the current era of distribution. Therefore, it needs to develop the policy of the digital innovation to maximize the capability of a company. The aim of this research is to understand the process of developing digital innovation to improve the entrepreneurial capabilities of SMEs in the distribution era. This study uses a literature study approach by observing and analyzing all information on the research topic such as literature, books, notes, magazines, and other references. The research results show that the development of digital innovation has a very close relationship with entrepreneurship, where both of these items have the same target, namely to make a profit. Furthermore, the marketing method for SME entrepreneurship products is used by utilizing digital innovation, namely online marketing through social media, digital platforms, or other marketplaces. This activity has a massive opportunity in the business world because it has entered the industrial era 4.0 and is heading towards society 5.0. Therefore, the SMEs need to apply the policy that is proven to be effective in developing digital innovation.