The COVID-19 pandemic currently plaguing the world has engendered many disruptions around us, with extremely dramatic effects on not only business activities and people but also on the global economy and its future. The victims of the unprecedented outspread of the pandemic have been primarily Micro and Small Enterprises, especially in developing countries. Not just that, many large enterprises have been forced to reevaluate their business models, resulting in variations in growth patterns in the business world. During this time too though, new avenues have opened, and there has been an evident rapid growth in the digitalization sector. Despite the large-scale digitalization across the world, businesses, especially SME’s have landed in a slump due to the lack of resources, disruption of the supply chain as well as lack of sustainability and ability to cope with the digitalization of businesses around them. The pandemic has also exposed real-world challenges faced in digitalization, while developing avenues of growth yet to be explored. This paper discusses significant changes and problems faced by the business world, how digitalization reshapes businesses and their working during the pandemic and what new avenues and problems the world may face due to the advent of COVID-19 and the simultaneous emergence of a new era led by digital transformation.