Intangible assets like knowledge, innovation and entrepreneurial leadership enable companies to gain and maintain competitive advantage. The ability to exploit opportunities and minimise threats through entrepreneurial initiatives has been shown to be crucial in developed countries. This article aims to determine if the same relationship exists in developing countries, using South African companies as a case. Primary data was collected by means of telephone interviews to assess the entrepreneurial orientation of companies and their perceptions of environmental conditions. A positive relationship was found to exist between perceived environmental opportunities and entrepreneurial behaviour. However, no relationship was found between hostile environments and entrepreneurial behaviour, as proposed in developed country studies.