Humanities & Social Sciences Reviews eISSN: 2395-6518, Vol 8, No 2, 2020, pp 808-814 https://doi.org/10.18510/hssr.2020.8289 808 |www.hssr.in © Rahmi et al. ANALYSIS OF E-COMMERCE AND E-ENTREPRENEURSHIP CHALLENGES ON DIGITAL ECONOMIC DEVELOPMENT IN WEST SUMATRA IN SUPPORTING NATIONAL ECONOMIC GROWTH Siti Rahmi 1* , Poppy Fauziati 2 , Erni Febrina Harahap 3 , Neva Novianti 4 , Daniati Puttri 5 1,2,3,4,5 Faculty of Economic, Bung Hatta University, Indonesia. Email: * rahmi.iiem@yahoo.com Article History: Received on 27 th May 2019, Revised on 06 th April 2020, Published on 04 th May 2020 Abstract Purpose of study: This study aims to present empirical evidence about the analysis of e-entrepreneurship and e- commerce of digital economic development in West Sumatra in supporting national economic growth. Methodology: the hypothesis used in the statistical method of this study is to test the classical assumption and multiple regression tests and descriptive statistical analysis. Result: The results indicate that an increase in the number of E-entrepreneurship in Indonesia, especially in West Sumatra, provides a significant overall effect on national economic growth, the statistical result is 0.002% but the development of business people and the digital market developments haven't been significant because it is greater than alpha 5%. Application: In the digital era there are still many challenges faced, especially related to the absorption of skilled labor and can be supported e-entrepreneurship. Therefore, it is necessary to analyze the strength of e-entrepreneurship in the digital economy to increase income and encourage national economic growth. Novelty/Originality of this study: This research has never been studied before in West Sumatra and raises a developing theme of the technological advancements of the industrial revolution and the digital era that can enhance the economic growth of a region. Keywords: E-entrepreneurship, E-commerce, Digital Economy, Economic, Growth, Policy. INTRODUCTION During the millennium there were many changes and patterns of consumer behavior in buying and selling transactions and easy access to them. The development and advancement of technology make all human activities easier and more practical, especially in the economic field. The development of technology has changed the economy to become more modern with the role of information technology and communication devices towards the digital economy. The digital economy is currently a hot topic related to the world economy. The impact of the digital economy is to establish various sectors including banking, transportation, health, media, etc. Information and communication technology changes social interactions and personal relationships to become more free, active, and has no border (borderless) with the internet network. (Anonim, 2015 ) The development of technology in the direction of all digital is now increasingly rapid. In the digital era like this, humans generally have a new lifestyle that cannot be separated from all electronic devices. Technology is a tool that can help most human needs. Technology can be used by humans to make it easier to do whatever tasks and jobs. This important role of technology is what brings human civilization into the digital era. (Bajer, 2017 ) The digital economy continues to grow rapidly throughout the world. This is because the digital economy has an important role in developing the region, especially in West Sumatra, besides being a tourist destination city in Indonesia, the development of advanced digital-based technology and e-commerce transactions are starting to increase and develop, this can support economic stability, among others can encourage growth, innovation and economic competitiveness in stimulating entrepreneurship and micro, small and medium enterprises (MSMEs). The development of entrepreneurship related to digital economics raises new ideas in the form of E-entrepreneurship as a step towards the development of the digital economy. (Commision, 2016 ) Overall, the analysis of the strength of E-entrepreneurship aims to look at entrepreneurial conditions in Indonesia related to the use of technology. The results obtained from the study are expected to provide an overview of the relationship between E-entrepreneurship and e-commerce policy in each region that supports national economic growth, especially in West Sumatra and economic growth in terms of the digital economy. This new business in the digital world is called e- commerce. As explained by Hidayat, electronic commerce or e-commerce is part of an e-lifestyle that allows buying and selling transactions to be done online from any place (Riadi, 2015 ). Online marketing has a continuation that will increasingly grow following consumer demand. Building an e-commerce site allows internet marketing players to grow even bigger, but internet micro-scale entrepreneurs in small and medium scale businesses have limitations to making e- commerce. Overcoming these MSME problems, the Internet Marketplace or online buying and selling sites will become a forum for marketing activities. (Mujilahwati, 2016 )