Over the past two decades, scholarly interest in the influence of biological factors on entrepreneurship has expanded considerably. Prior studies have explored the ways in which biological processes shape entrepreneurial decisions and behaviors; nevertheless, the dynamic interaction among biological factors, cognition, and behavior within the entrepreneurial context remains insufficiently examined. Accordingly, this study seeks to address this gap by analyzing the relationships between central entrepreneurial cognitive capabilities—namely, self-efficacy and alertness—and opportunity recognition, while also assessing the moderating effect of a biological factor, i.e., sleep quality. A sample of 160 entrepreneurs who had owned and managed a business within the preceding five years was determined using the G*Power software. Data were gathered in early 2025 through a structured questionnaire administered via purposive sampling. The data were analyzed using logistic regression in SPSS version 26. The findings demonstrate that both alertness and self-efficacy exert significant and positive effects on opportunity recognition. Furthermore, sleep quality amplifies the relationship between these cognitive capabilities and opportunity recognition, indicating that biological health plays a pivotal role in enhancing entrepreneurial cognition. These results provide meaningful practical implications for the development of interventions and strategies designed to strengthen entrepreneurs’ cognitive capabilities and thereby improve opportunity recognition
