The purpose of the study was to analyze the specific characteristics of sustainable entrepreneurship in the era of digital transformation, as well as the driving forces and barriers to circular business model innovation in the era of digitalization. The Covid-19 pandemic and currently existing most severe political circumstances, caused by Russia's invasion in Ukraine, geopolitical conflicts and military operations in the Middle East, have threatened the achievement of the Sustainable Development Goals by 2030. Achieving the Sustainable Development Goals remains an urgent task. Therefore, in this situation it is relevant to analyze the specifics of sustainable entrepreneurship and the factors supporting and hindering the circular business model innovation. Among scientists the concept of circular economy is discussed as a strategy to reduce waste of resources, pollution and emission. The circular business model innovation is considered by many researchers as a practical implementation of this concept at the organizational level. At the same time the digital transformation has totally changed the characteristics of business processes by integrating digital technologies in business operations or creating new business developed from digital transformation itself. In the Era of digital transformation, the drivers and barriers to circular business model innovation are considered to be the factors that either facilitates or inhibits organizational units in the process of conceptualizing and implementing circular business model innovation. Supporting policies to circular economy and digitalization is an essential factor toward digital transformation of the economy.