The digital economy affects traditional businesses by shifting consumer behaviors and service delivery models. As more consumers engage in online shopping and digital services, businesses must adapt to meet evolving demands. This shift often necessitates investment in technology infrastructure and new marketing strategies to maintain competitiveness. Traditional sectors may face challenges in digital transformation and customer engagement, leading to potential market share loss. Conversely, embracing the digital economy can unlock new opportunities for growth, innovation, and streamlined operations, ultimately reshaping entire industries.