Entrepreneurial activity on Instagram increasingly depends on how founders construct and communicate their identities through digital branding practices. This study examines the interrelationship between entrepreneurial identity formation, psychological branding mechanisms, and business sustainability within the Instagram ecosystem. Drawing on identity theory and consumer psychology, the paper explores how entrepreneurs use narrative self-presentation, authenticity cues, and emotional symbolism to foster trust, engagement, and long-term customer relationships. Through a synthesis of recent empirical literature and platform-specific branding dynamics, the study demonstrates that psychologically resonant branding strengthens perceived credibility and enhances audience loyalty, thereby supporting sustainable business performance. The findings suggest that entrepreneurs who strategically align personal identity with brand values are better positioned to achieve consistent engagement, adaptive growth, and resilience in competitive digital markets. This research contributes to the growing discourse on digital entrepreneurship by highlighting the psychological foundations of branding as a critical driver of sustainability on social media platforms.