Objective: TVET systems face persistent challenges in producing graduates with both technical and entrepreneurial competencies demanded by contemporary labor markets. This study examined the integration of entrepreneurship education within Teaching Factory learning as a strategy for strengthening vocational competency development and workforce readiness, aligned with SDG 4 (Quality Education) and SDG 8 (Decent Work and Economic Growth). Method: A mixed exploratory design was employed, combining a Systematic Literature Review conducted in accordance with PRISMA 2020 guidelines and a field-based needs analysis. The SLR retrieved 1,247 records from Scopus, Web of Science, ScienceDirect, ERIC, with 75 articles meeting the inclusion criteria for thematic synthesis. The field needs analysis engaged 48 participants across three vocational high schools in East Java, Indonesia, including teachers, industry practitioners, students, curriculum coordinators, and school administrators, using semi-structured interviews, structured observation, and a validated needs analysis questionnaire. Results: SLR findings revealed that TeFa implementation and entrepreneurship education have been examined predominantly as separate research domains, with no integrated instructional framework validated through convergent evidence. Field data identified the largest competency gaps in entrepreneurial mindset (gap = 2.32), self-employment orientation (gap = 2.24), adaptability (gap = 2.19), and innovation capability (gap = 2.19) relative to industry expectations. Curriculum structural constraints and insufficient entrepreneurship integration were consistently identified as primary barriers. Novelty: A five-dimensional entrepreneurship-based TeFa framework organized around a four-phase iterative instructional cycle is proposed, contributing an empirically grounded foundation for curriculum innovation, vocational policy reform, and the realization of SDG 4 Target 4.4 and SDG 8 through TVET transformation.