The growth of the global economy and the significance of emerging markets have rendered socioeconomic and environmental issues paramount drivers for innovation professionals. Seeking low-cost approaches to innovation has arisen because established innovation management practices are unsustainable, and there is a necessity for cheaper and inclusive methods. Organizations that adopt frugal innovation can make it feasible to bridge the developmental gap between developed and developing countries, as well as promote sustainable development. Most firms, however, face difficulties when trying to enter new markets and offer their products as they do so in varying contexts. In the interest of promoting sustainable development in developing nations, one should understand how to promote entrepreneurs and new businesses in their early phases of development. Due to this reason, this chapter will attempt to examine the determinants of the capability of frugal innovation-based startups to contribute to sustainable development in economic, environmental, and social contexts. It is crucial that an in-depth examination of both the hindrances as well as the favorable conditions for scaling up, and entrepreneurial mindsets concerning their social surroundings, is conducted to understand the determinants. The chapter reveals that entrepreneurs’ experiences have given them the capability to know the needs of their customers and to initiate attitude changes. At the same time, as they have not always possessed the money, talent, and capability to bargain on their own to grow, entrepreneurs rely on social support networks. The necessity for democratization of digital technology and harnessing entrepreneurial ecosystems was emphasized. Additionally, the author invites further discussion on the impact of power relations in entrepreneurial ecosystems and how sustainable influence is measured.