In this article, we empirically assess the potential and constraints of digital start-up business development, a case study in Yogyakarta Province, Indonesia. Based on the primary and secondary data analysis results, it was found that digital start-up businesses did not affect regional economic growth and employment. Digital companies have the potential to be developed. The human resource factor is a determinant of the success of a digital start-up business. Factors of age, gender, education, and demographic bonus positively affect regional economic growth. The high number of adults contributes to hedonic buying motivation and increased consumer tendency index (ITK) as a potential market segmentation for digital start-up businesses. The obstacles to developing a digital start-up business are internet speed, cybersecurity, and limited capital for investing in a digital start-up business.