As digitalization continues to reshape industries and markets, digital transformation and creation of a ‘digital safety net’ has emerged as a prominent mechanism for entrepreneurial resilience. Digitally advanced entrepreneurs harness technology and innovative business models and adopt agile strategies to grow, while digitally-uncertain entrepreneurs struggle to maintain their business models and customers. Digital transformation has been pivotal during the COVID-19 pandemic and enabled greater diversification, enhanced adaptability, improved access to global markets, and novel forms of knowledge collaboration, altogether increasing firms’ ability to survive and grow. Understanding the mechanisms and implications of the relationship between digital technologies and entrepreneurial resilience is essential for policymakers, researchers, and practitioners to develop rapid policy responses.