Despite two years of movement restrictions caused by an outbreak, China's economy has been operating at full capacity for several months. The COVID-19 tsunami had a huge impact on the growth of the digital economy in Southeast Asia. Since the reopening of borders, demand has been high, but the rising cost of raw materials, global economic insecurity, and most importantly, labour shortages have damaged businesses, particularly the expansion of small and medium-sized enterprises. In order to restore market share, the firm owners might consider making investments to meet customer demand. However, in the current business context, capital expenditures are rarely considered. The present study seeks to examine empirically the mediating role of creative technologies and the effect of innovation practices of Small Medium entrepreneur towards the dynamic sustainability of entrepreneurship by applying the conceptual theory of Dynamic Capabilities View and Diffusion of Innovation. The future respondents indicated as entrepreneur in the Small Medium industries in China focusing on service based. The study also evaluates the relationship between innovation practices towards dynamic sustainability of entrepreneurship mediates by creative technology. Four hypothesized relationships have been developed together with the conceptual framework.
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