Abstract: This study examines the transformative role of innovation in family-based entrepreneurship among 119 entrepreneurship students who developed their skills at the Centre of Entrepreneurial Learning and Innovation (CELI) at the Catholic University of Rwanda (CUR). Its aim is to evaluate how student-led innovations enhance family business efficiency, household income, and social impact. The study hypothesizes that affordable and contextually relevant innovations, when implemented in family enterprises, generate significant economic and social benefits. A mixed-methods approach was employed, with students collaborating with family businesses to identify challenges and implement small-scale innovations, including mobile money platforms and digital marketing strategies. Data were collected through structured surveys, interviews, and innovation project reports. Quantitative analysis revealed that 95 out of 119 families (79.8%) adopted at least one student-led innovation. Among these, 85% reported reduced operational costs (averaging 28%), and 78% experienced an income increase ranging from 30% to 50% over six months. Additionally, 70% of participants noted improved teamwork and decision-making within the family. The adoption of digital tools, particularly mobile payments and WhatsApp marketing, was associated with a 40% expansion in customer reach. Families that implemented sustainable innovations not only generated higher revenues but also contributed to addressing local community challenges. The study concludes that student-driven innovation can substantially strengthen family entrepreneurship. Expanding CUR’s incubation programs and integrating innovation labs into the curriculum could further scale these outcomes. This experiential learning model holds considerable potential to enhance economic resilience, family cohesion, and community development. ACRONYMS AND ABBREVIATIONS CELI: Centre of Entrepreneurial Learning and Innovation CUR: Catholic University of Rwanda SMEs: Small and Medium‑Sized Enterprises UNDP: United Nations Development Programme.