Objective: This study aims to analyze the influence of Banco do Nordeste (Northeast Bank of Brazil) in promoting innovative entrepreneurship in family farming through its renewable energy financing policies. Method: A quantitative research methodology was employed, involving a survey of 164 family farmers located in the rural areas of Rio Grande do Norte. The collected data were subjected to confirmatory factor analysis (CFA) and multiple linear regression (MLR) to assess the relationships between entrepreneurial innovation, renewable energy adoption, and competitive advantage in family farming. Results: The findings demonstrate that innovative entrepreneurship facilitated by Banco do Nordeste's financing policies significantly contributes to 59.5% of the development in family farming. Furthermore, renewable energy adoption is shown to have a considerable influence, accounting for 39.3% of the entrepreneurial innovation by lowering operational costs and minimizing environmental impacts. These results underscore the critical role of Banco do Nordeste in supporting regional development and encouraging sustainable practices among family farmers. Conclusions: The study concludes that Banco do Nordeste’s renewable energy financing policies are instrumental in fostering entrepreneurial innovation and promoting the sustainable development of family farming. This emphasizes the need for increased awareness and dissemination of such financing programs to enhance their effectiveness. Additionally, the development of a framework for analyzing entrepreneurial innovation in family farming offers a valuable resource for future research and policy development.