This study sought to examine strategic entrepreneurship and issues surrounding this type of activity in a public sector context. The concept of strategic entrepreneurship has received increasing attention in recent years; however, limited studies have focused on strategic entrepreneurship as a distinct construct in public sector context. Consequently, the objective of this study was to address the question of “What is the nature and scope of strategic entrepreneurship in the context of South Africa’s SOEs” through examination of theory and practice. The research question is addressed by first developing a revised framework of strategic entrepreneurship from literature on entrepreneurship, strategy, and public sector context. This revised framework is then examined on activity which is entrepreneurial and strategic within four SOEs operating South Africa as at 2011. Transcripts from a series of interviews, and publicly available documents are analysed thematically. The study identified additional supporting and external factors of strategic entrepreneurship which form a revised conceptual framework of strategic entrepreneurship. The study showed core, supporting, and the external environment elements of strategic entrepreneurship contribute to the increased level of entrepreneurial activity in the public sector context, in particular state-owned enterprises.