Existing literature has suggested that digital entrepreneurs have problems with access to capital, and a lack of mentors with expertise. This systematic literature review examines how platform economies foster entrepreneurship and innovation within digital ecosystems. Analyzing and synthesizing 27 peer-reviewed articles from 2018 to 2024, we explore the question: “How do platform economies contribute to entrepreneurship and innovation within digital ecosystems?” Key mechanisms identified include crowdfunding's role in democratizing capital access, digital platforms offering novel venture models, and digital entrepreneurial ecosystems (DEEs) providing development support and network effects. Findings reveal platform economies’ transformative impact on entrepreneurship through reduced entry barriers, innovative business models, and enhanced innovation capabilities. Future research directions include DEE lifecycle dynamics, cross-country analyses, long-term network effects, regulatory environments, economic value quantification, and platform resilience factors.