This study draws upon institutional theory to investigate how the country’s institutional framework fosters start-up activities or causes a bottleneck that diminishes Austrians’ entrepreneurship. Through a multiple case study approach based on in-depth interviews with five start-up founders, our findings illustrate the impacts of the Austrian institutional environment on new venture initiatives. Among many institutional factors, incubation centres, administrative bureaucracies, and financial burdens appear to have the strongest effects on early-stage start-up activities in Austria. This paper concludes by providing theoretical insight and political implications on establishing institutional systems that streamline interactions between government, the local community, and start-up companies.