The topic of my thesis encompasses the notion of digital entrepreneurship, whose coherent development proves to be essential for growth of countries’ economies all around the world. The idea of transforming traditional means of conducting business into a digital realm has set the foundation for both, entrepreneurs and consumers, to gradually start abolishing old habits and obsolete perspectives, and rather shift their mindset, as well as behavior, towards a more efficient and straightforward way of doing business. Conception of digitally transforming entrepreneurship ecosystems implies that all participants of the system, should they be successful and efficient, are well educated on trends within the IT industry so that they can use their knowledge and skills to better navigate and make decisions throughout their interactions inside of the system. Modern day entrepreneurs tend to adopt new technologies in order to revolutionize their businesses, and at the same time consumers tend to be more and better informed about products and services than ever before. The goal of this thesis is to understand the effects of digitization and digital transformation on countries’ economies and how the advancement of emerging technologies such as automation, Internet of Things and data management influences entrepreneurs in their course of action for the development of their businesses. Furthermore, the thesis will compare Croatia’s foundations for digitalization of entrepreneurship with other Member States of the European Union and outline main differences between stages of digital development among the countries.