This research examined whether microfinance-assisted developmental mechanisms can integrate ecological objectives alongside social and economic ones—thus promoting sustainability. The specific focus was to test the ability of microenterprises operated by community-entrepreneurs in supporting local ecosystem services. To this end, the research: elucidated the nature and dynamics of linkages between communities and the local ecosystems with the lens of coupled social-ecological systems, i.e. illustrated ecological modernization of microenterprises in a developing country context; tested how community-based enterprises transform upon application of green microfinance strategy; and then recognized how social learning is promoted through such community-based intervention mechanisms, e.g. microfinance. The research used case study and participatory approaches. The case study comprised two components: i) a green microfinance program, and ii) communities in a riparian, and a wetland ecosystem in Bangladesh engaged in entrepreneurship. The major tools that the study employed for data collections were: household surveys, participatory land -use surveys, semi-structured interviews, key informant interviews, focus group discussions, multi-stakeholder workshops, field observations, and document reviews. The research findings reveal that the green microfinance strategy, in the short and medium terms, catalyzes entrepreneurial and social innovations, and combine the embedded economic and social objectives of the classic microfinance with the new ecological objectives towards sustainability. The strategy applied by Microfinance Institution (MFI) and adopted by community enterprises transformed the ventures—helping them to go green and reducing greenhouse gas emission. Besides, the partnerships that occur between non-governmental organization (NGO) and community-based organization (CBO) in the process of implementing developmental programs—result social learning and innovations in the communities. The research review found grassroots developmental initiatives as an evolving phenomenon over time. With this view, and with its observation through this cross-sectional study, the research proposes a framework entitled ‘community-based developmental enterprise (CBDE)’. The framework proposes community level entrepreneurial ventures, associated NGO-MFIs, CBOs and other development partners to consider ecosystem services and wellbeing components in entrepreneurial design and actions. / October 2016