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Abstract This study explores the mechanism of opportunity recognition and exploitation in entrepreneurial context within developing countries by specifically focusing on cognitive, contextual and social factors. Cross-sectional data has been collected from 299 entrepreneurs affiliated to private and public incubators across Pakistan. Based on Resource-Based Theory (RBT) and Social Capital Theory (SCT), the study examines the influence of cognitive, social and contextual factors on the successful exploitation of entrepreneurial opportunity. Opportunity recognition has emerged as an important mediating factor between cognitive factors, contextual factors and opportunity exploitation. Social intelligence and social capital are found to be significant moderators to enhance the entrepreneurial outcomes in resource-constrained and volatile economies. Entrepreneurial Opportunity Recognition (EOR) has emerged as an important mediating factor between cognitive factors such as Entrepreneurial Self-Cognition (ESC), Entrepreneurial Alertness (EA), and Entrepreneurial Self-Efficacy (ESE) and Entrepreneurial Opportunity Exploitation (EOE). The research’s contribution to the literature is that it incorporates cognitive, contextual, and social constructs into a single empirical model specifically designed to operate within the environment of emerging economies when it comes to entrepreneurship. This paper distinguishes itself from previous literature in that it finds interdependencies between these factors and proposes an interdependent moderated-mediation model that identifies the challenges and enablers that are unique to developing countries such as Pakistan. The findings offer actionable insights into fostering entrepreneurship through policy making, training and development that enhance cognitive and social skills. Strengthening social capital and intelligence can amplify entrepreneurial success and contribute to economic development within emerging economies.