This multicountry study empirically explores the institutional determinants of macro-level entrepreneurship. Findings suggest that a society's normative, cultural-cognitive, and regulative institutions are related to entrepreneurial activity. Normative and cultural-cognitive institutions’ descriptive power in explaining entrepreneurial activity is higher than regulative institutions' or per capita gross domestic product. This suggests that differences in values, beliefs, and abilities may play a greater role than purely economic considerations of opportunity and transaction costs. Specific attention is given to opportunity- and necessity-motivated entrepreneurship due to their relationship to economic development.