<![CDATA[Generation Z currently plays a major role in the digital MSME ecosystem by using innovative approaches that distinguish them from previous generations. This study aims to explore the characteristics of innovation in digital SME business models developed by Generation Z entrepreneurs. The research method applies a systematic literature review approach by examining a number of scientific articles listed in the Scopus, Google Scholar, and Science Direct databases, published between 2019 and 2024. The results of the study show five main characteristics, namely the comprehensive use of digital platforms, the use of social media as the main channel of communication, community-based business models, a focus on sustainability, and flexibility in adapting to technology. The findings show that Generation Z tends to integrate various digital platforms simultaneously in their activities, prioritizes personal branding, and builds collaborative ecosystems. The research results provide valuable insights for policymakers in designing digital business incubation programs, as well as for MSME players in implementing innovative strategies that are in line with the demands of the digital era.]]>
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