This literature review examines the role of transformative leadership in empowering entrepreneurs as change agents for sustainable communities and cities. Drawing on Urban Regime Theory, Transition Management Theory, the Quintuple Helix Model, and Leverage Points Theory, the analysis reveals two essential pathways through which entrepreneurial leadership contributes to sustainability transformation: direct problem-solving and systemic institutional change. Through systematic analysis of 87 publications, a framework has been developed categorizing entrepreneurial interventions as resource-based, transactive, organizational, and value-based—targeting leverage points of increasing transformative potential. Organizational interventions create new governance structures and hybrid organizational forms that challenge conventional boundaries between sectors, while value interventions address the deepest leverage points by redefining the fundamental goals and paradigms guiding development. This study highlights the importance of sustainability intent, inclusive entrepreneurial ecosystems, and multi-stakeholder collaboration in fostering transformative leadership. The findings suggest that entrepreneurship education should integrate systems thinking with practical business knowledge, preparing leaders who can transcend apparent trade-offs between economic and environmental goals through creativity and innovation.