Women entrepreneurs play a vital role in promoting economic growth, employment generation, and sustainable development, particularly in the food processing industry. Despite increasing government support and expanding market opportunities, women entrepreneurs continue to encounter barriers related to financial empowerment, skill and capacity development, digital empowerment, and institutional support, which limit their ability to achieve sustainable business transformation. This study examines the influence of financial empowerment, skill and capacity development, and digital empowerment on sustainable transformation among women entrepreneurs in the food processing industry. It further investigates the mediating role of business innovation capability and the supporting role of technology adoption and government policy. A quantitative descriptive research design was adopted, and primary data were collected from 335 women entrepreneurs engaged in food processing enterprises across Tamil Nadu using a structured five-point Likert scale questionnaire. The data were analysed using percentage analysis, reliability analysis, descriptive statistics, correlation analysis, one-way ANOVA, and regression analysis. The findings reveal that financial empowerment, skill and capacity development, and digital empowerment significantly enhance business innovation capability, which subsequently improves economic, environmental, social, and operational sustainability. The study also demonstrates that technology adoption and supportive government policies strengthen sustainable transformation by enhancing innovation, productivity, and market competitiveness. The proposed integrated framework contributes to the existing literature by explaining the relationship between women entrepreneurs’ empowerment dimensions and sustainable transformation through business innovation capability. The findings provide valuable implications for policy-makers, financial institutions, and entrepreneurship development agencies to formulate effective strategies that strengthen women-led food processing enterprises and support the achievement of Sustainable Development Goals (SDGs), particularly SDG 5 (Gender Equality), SDG 8 (Decent Work and Economic Growth), and SDG 9 (Industry, Innovation and Infrastructure).