How significant is opportunity evaluation in entrepreneurial venture creation? Empirical evidence from the enterprising communities of a developing economy

Purpose This study aims to investigate the role of opportunity evaluation and negative action-related emotions associated with actions on the link between opportunity recognition and entrepreneurial behavior in MSMEs. Design/methodology/approach Primary data were collected using structured questionnaires from 416 MSMEs. The data were analyzed using Hayes’ PROCESS macro models 4 and 15. Findings The findings indicate that while the direct effect of opportunity recognition on entrepreneurial behavior is both positive and significant, the indirect effect mediated through opportunity evaluation yields more substantial positive implications. Moreover, when negative action-related emotions serve as moderators, the results demonstrate that the direct effect of opportunity recognition on entrepreneurial behavior remains positive and significant, particularly when negative action-related emotions are at a lower intensity. Originality/value To the best of the authors’ knowledge, no prior research has explored the impact of negative action-related emotions on the process of recognizing opportunities that lead to the creation of an entrepreneurial venture creation. Additionally, the study uses the constructs of the Entrepreneurial Event Model as tools for evaluating entrepreneurial opportunities. The results of this research hold significant relevance for developing economies, where negative action-related emotions appear to hinder the formation of entrepreneurial ventures.