In recent years, the digital economy (DE) has gained significant attention for its potential in reducing carbon emissions (CE). This paper intends to explore the regional carbon reduction effect of the DE and the entrepreneurship of small and medium-sized manufacturing enterprises (SMMEs), as well as disclose the mechanism through which the entrepreneurship of SMMEs functions. To this end, this paper employs an extended STIRPAT model to analyze the panel data of 30 provinces in China spanning from 2011 to 2018. The empirical analysis shows that (1) the DE has a positive effect on reducing regi...