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The study investigates whether adverse conditions associated with disability stimulate entrepreneurial pursuits, emphasizing perceived discrimination in entrepreneurship. It investigates the direct effect of Entrepreneurial Competency (EC) on Entrepreneurial Intention (EI) and Entrepreneurial Behavior (EB) among Persons with Spinal Cord Injuries (PSCI) in South Karnataka. Additionally, it assesses the moderating effect of Perceived Discrimination (PD) on the EC and EB relationship. A structured questionnaire based on validated scales to measure EC, EI, EB, and PD was administered to 49 participants. Data were analyzed using Partial Least Square Structural Equation Modeling (PLS-SEM) to test the hypotheses. Results demonstrate that EC significantly enhances EI and EB, with path coefficients of 0.608 and 0.334, respectively. EI significantly influences EB with a path coefficient of 0.55. The interaction between PD and EC showed a positive relationship with EI at the 90% confidence interval (p = 0.096). The R-squared values indicated moderate predictive validity for the model. This research highlights the importance of EC in fostering EI and EB among PSCI. PD may strengthen these relationships, showing a nuanced impact that aligns with literature that suggests PD can catalyze activism and collective action among PWDs. The findings highlight the necessity of acknowledging PD’s dual role as an impediment and a potential motivator for entrepreneurial endeavors, emphasizing the imperative for tailored interventions that mitigate the negative impacts of PD and harness its potential to drive entrepreneurial innovation and resilience among PSCI.