The article considers the competency-based approach as a tool for forming sustainable business ecosystems. It is noted that in the digital economy, the importance of distance learning for students is increasing, where quality is the main indicator of the sustainable development of territories. A sustainable business ecosystem combines participants, a platform, and an enterprise. Effective interaction can be built based on the main indicator of development—the quality of distance education throughout life. The ecosystem as an enterprise is self-developing, using innovative approaches to management. To achieve success, the ecosystem must be closely connected to the main business, education, and territorial community. Its participants must adhere to dynamic experimentation and a constant search for innovative solutions. The study was conducted on the example of the quality of education at Lutsk National Technical University in the context of sustainable development. It was determined that the main skill of the twenty-first century is digital literacy, particularly its role in forming sustainable business ecosystems. The thesis that students in wartime Ukraine require significant coordination of employer requirements with the offers of educational institutions is confirmed. Business and administration education is identified as a cornerstone for building sustainable business ecosystems in Ukraine given the ongoing military conflict. The study describes the theoretical, methodological, and analytical aspects of lifelong distance education in the context of sustainable development of territories. The main approaches to the competency-based approach in distance education in Ukraine are summarized and the features of obtaining education in business and administration from the point of view of quality and sustainability are highlighted. The key competencies necessary for distance education in the field of business and administration from the point of view of students and employers are identified. The article recommends that educational institutions that train specialists in business and administration pay attention to the balance of hard and soft competencies.