Pakistani youth face a significant challenge in finding jobs and avoiding long-term unemployment due to a lack of professional experience and qualifications as a result of poor educational quality and a lack of necessary skill training. For a country like Pakistan, youth is a very important and valuable asset therefore its engagement in productive and skillful employment is very crucial for it. Today, digital enterprise is recognized as a critical component in the creation of jobs and economic development as it generates new opportunities and is a key driver of innovative resourcefulness as well as value creation. This study investigated the prospects for young entrepreneurs to become active members of digital business platforms around the world, as well as the challenges that young entrepreneurs face as they learn such skills. It also examined the effects of digital enterprise skills empowerment on youth employability. Qualitative research was carried out through in-depth interviews from 30 young entrepreneurs via purposive sampling in the twin cities of Pakistan i.e. Islamabad and Rawalpindi. The study found that digital entrepreneurship can create opportunities for people to work in remote areas and also plays an important role in promoting gender equality and resolving socio-economic concerns for instance acquisition of these skills helped to increase employability and empowerment in society and business. Young entrepreneurs can also better play their part to improve the economy through digital literacy. Furthermore, the study also revealed that deficit in funding, shortage of digitally capable and experienced labor force, gap between educational curriculum and new global curriculum for business and nonexistence of policies and guidelines to protect and help e-commerce entrepreneurs were the key challenges that young entrepreneurs had faced while stepping into digitalization. Supervisor:- Dr. Jehangir Khan