This study assessed entrepreneurship initiatives and economic development of rural communities in Gwagwalada area council, FCT, Abuja., Nigeria. The choice of Gwagwalada was chosen because it is one of the core rural areas with large population in Abuja. The population of entrepreneurs registered with and operating within the area council amounts to 2,690, based on the data accessed from the Gwagwalada area council. The study adopted the Taro Yamane sample determination formula to derive a sample size of 348, which formed the total number of 348 copies of structured questionnaire administered, filled, collated and analyzed. In analysing the collated data, the study employed the use of Chi-square analytical tool, computed on the SPSS tool. The analyses revealed that the role of entrepreneurship initiatives of creativity and innovations and the impact of empowerment on the performance of businesses in Gwagwalada Area Council were statistically significant. The conclusion was in line with Innovation Diffusion Theory which is widely adopted to self-sustain an organization. It is recommended that government should be at the forefront of establishing and sustaining Business Incubation Centres, free from the usual bureaucratic bottlenecks. A deliberate and holistic effort of governments at various tiers, institutions and other stakeholders to increase the supply and sustenance of entrepreneurs in whichever way possible will bring about the much-desired goal of meaningful economic development to the rural communities in Gwagwalada and the nation in general.