This study sought to determine the impact of entrepreneurial ecosystems on the inculcation of entrepreneurial tendencies for community development. Since India's independence, the encouragement of entrepreneurship has existed. The government has shown tremendous support for the expansion of entrepreneurship. The government has provided financial assistance through programs such as the Women Enterprise Fund, Youth Enterprise Fund, and Uwezo Fund. Other forms of government assistance include the improvement of infrastructure, the introduction of entrepreneurship education in all institutions of higher education, and the improvement of national security. In spite of this, community underdevelopment has remained excruciating. This study aimed to determine whether entrepreneurial ecosystems have any effect on community development. Entrepreneurial ecosystems are influenced by government policy, the availability of capital, human capital, and market conditions. Individuals operating microenterprises in Nyeri Town constituted the population analyzed. The proprietors of 478 microenterprises were chosen. Using a statistical formula, the sample size of 236 was determined to be within the acceptable range. Economic theory, psychological theory, and social-cultural theory constitute the theoretical foundations of this investigation. A questionnaire was distributed, and 212 individuals responded. SPSS was then used to analyze the data. According to the findings, government policies contribute 0.77 percent to the inculcation of an entrepreneurial disposition. The research revealed a strong correlation of 0.79 between financial access and the inculcation of entrepreneurial tendencies that contribute to community development. The study also revealed a moderately positive correlation between 0.65 on how human capital contributes to the inculcation of an entrepreneurial disposition for the development of communities. The state of the markets indicated a correlation of 0.63, which is moderate. The results are presented in tables. Based on the research findings, the researcher recommended that the government re-examine its current policies and amend those that are detrimental to entrepreneurial inclination. The investigation disclosed that although the government has made funds available, they are not accessible due to borrowing regulations. Unfortunately, India's existing human resources are uneducated and unskilled, as it is a nation with a high demand for human capital. The study recommended entrepreneurship training not only at the institutional level but also for already established entrepreneurs. Self-efficacy is a person's estimation of his or her capacity to carry out an action (Bandura, 1986). The degree to which a person believes he or she can effectively perform the various roles and responsibilities of entrepreneurship (Chen et al., 1998)