<p>This study examines how environmental entrepreneurial orientation influences women’s entrepreneurial success in traditional markets through social capital and traditional market innovation. Using a cross-sectional quantitative survey design with systematic stratified random sampling, the study collected data from 496 women entrepreneurs in Ghana’s Agbogbloshie market and analysed it using PLS-SEM. The findings reveal that environmental leadership works primarily through sequential mediation of social capital and traditional market innovation to enhance business outcomes, while environmental awareness shows a negative direct effect on financial performance. This study advances theory in three keyways: First, the study extends dynamic capability theory to informal economic settings, demonstrating how environmental capabilities operate differently in collectively organised traditional markets. Second, this study conceptualises and validates “traditional market innovation,” which is a unique adaptation mechanism that incorporates environmental practices while maintaining cultural continuity. Third, this study illuminates how environmental initiatives in traditional markets must navigate established social hierarchies, where leadership legitimacy creates ripple effects through market networks. These insights offer important implications for supporting sustainable entrepreneurship in traditional markets, where adaptation rather than disruption proves most effective for enhancing environmental and business outcomes.</p>