This systematic research review provides a holistic overview of the construction industry's external and internal business environment. This thorough analysis of the literature offers a comprehensive overview of the internal and external business environment of the construction sector. As such, this study evaluated various elements that influence the business climate of the construction sector through a thorough assessment of academic and industry sources. To achieve the objective of this study an in-depth analysis of the existing literature was conducted. This systematic literature review assessed existing papers published in the last decade to ensure the relevance of the data from the papers. External variables that impact the industry's demand, cost of financing, and viability of projects include economic growth, interest rates, and governmental laws and regulations. Internal elements that impact a company's potential to be competitive and sustainable include managerial techniques, workforce productivity, and technology innovation. Businesses in the construction sector must comprehend these characteristics to create successful strategies for navigating the possibilities and problems faced by the sector. The review emphasizes the significance of taking into consideration internal as well as external factors when examining the business environment of the construction sector. It offers information to industry stakeholders to guide their decision-making.