Objective: This study examines how Community-Based Entrepreneurship (CBE), Local Wisdom, and Digital Marketing interact in the development of Indigenous community businesses in Kampung Enggros, Papua. Rather than treating digitalization as a purely technical process, the study explores the sociocultural mechanisms through which community social capital, customary institutions, and digital capability shape Sustainable Business Development.Methodology: A sequential exploratory mixed-methods design was employed through five linked stages: qualitative exploration, theme development, construct operationalization, exploratory quantitative assessment, and integration. The qualitative phase involved in-depth interviews, focus group discussions, participatory observation, and documentation with 19 informants. The quantitative phase involved 20 business actors, while the exploratory PLS-SEM analysis contained 19 observations. Given the very small analytical sample and the measurement limitations of the Business Development construct, the quantitative results are interpreted as supporting exploratory evidence rather than confirmatory hypothesis tests.Findings: The exploratory quantitative paths were not statistically significant and are not interpreted as hypothesis confirmation. The qualitative evidence reveals three mechanisms that better explain the Enggros context: a social capital–digital capability gap, Local Wisdom as an institutional safeguard that regulates resource use and commercialization, and intergenerational digital brokerage through which younger community members connect culturally knowledgeable older business actors with digital markets.Conclusion: The study proposes an Integrated Community-Based Entrepreneurship Model Based on Local Wisdom through Culturally Mediated Digital Marketing. The model positions CBE as a source of collective capacity, Local Wisdom as both a value resource and institutional safeguard, and Digital Marketing as a capability that must be developed gradually through culturally compatible and intergenerational learning. Sustainable Business Development is therefore understood as economic advancement that remains aligned with cultural continuity, resource sustainability, and community well-being.