Permaculture is a growing but little researched phenomenon emphasising care for the environment, equity, fair treatment of people and working with—and not against—nature. It thus represents a potential alternative to business as usual, capable of addressing fundamental challenges posed by human‐made climate change. The paper examines a previously ignored site of entrepreneurship by taking a practice perspective, exploring connections between the practice and growth of permaculture and institutional entrepreneurship. It assesses practice‐related and institutional factors affecting the start‐up and operation of permaculture enterprises in the United Kingdom. The study maps and surveys UK Permaculture Association members who have started up their own business and reports on qualitative data from personal interviews with twenty of them. Data analysis employs NVivo software and involves thematic analysis pertaining to the practice, institutional biographies and institutional portfolios of permaculture entrepreneurs. The findings show the importance of permaculture activists' institutional biographies and institutional portfolios to the start‐up and operation of permaculture enterprises and for shaping permaculture‐related practice. The contribution of the paper lies in how it balances attention to individual agency with subfield‐specific, organisational field and macrosocial factors in understanding ‘beyond profit’ entrepreneurship.