This study introduces the Temporal Dynamics of Digital Entrepreneurship (TDDE) index, an innovative tool that enhances the European Index of Digital Entrepreneurship Systems (EIDES) by incorporating temporal dynamics into its assessment framework. Built on the DARIA-TOPSIS method, the TDDE index captures the evolution of digital entrepreneurship performance over time, offering a nuanced understanding of how macro- and micro-level factors influence entrepreneurial ecosystems in European countries. The findings indicate that micro-level determinants-such as digital competencies, knowledge sharing, and networking-play a more significant role in driving digital entrepreneurship than macro-level factors. Country-specific analysis reveals varying influences; for instance, Finland’s digital entrepreneurship is largely driven by micro-level factors, while Malta balances both macro and micro elements. Conversely, countries with lower digital entrepreneurship performance are predominantly affected by macro-level constraints. The TDDE index provides policymakers and entrepreneurs with a robust framework to assess and enhance digital entrepreneurship in dynamically evolving environments.