In developing countries, sustainable businesses owned by women have been in vogue in the quest to realize social justice, inclusive economic development, and environmental conservation. These businesses offer employment and enhance society through social inclusion and use of resources in a socially acceptable manner. Women entrepreneurs can thrive, but structural challenges such as inadequacy of finances, skills, and socio-cultural constraints may restrain them. This paper studies how capacity building in communities could help women-owned enterprises. Past studies indicate the role of local programs such as skill development workshops and SHG and cooperative models in enabling women to start businesses. Research indicates that capacity-building programs, which enhance personal finance, management, and market access, are used to start and conduct enterprises by women. Social capital, collaborative activity and information sharing, and community networks are important in long-term sustainability. The study further adds that community organizations that promote women-owned businesses promote environmental-friendly activities. There are still digital exclusion and infrastructural and policy challenges despite the progress. The study recommends the application of combined methods such as financial inclusion, institutional support, and capacity development as a way of maximizing the effectiveness of women-led enterprises. According to the research, community-based capacity building helps rural and grassroots women change their entrepreneurial potential into sustainable development.