Economic action requires well-functioning institutions, both formal and informal ones. In this chapter, we use the example of entrepreneurship in different contexts to explore the interplay between institutions, values, and the agency of entrepreneurs towards institutions. Generally, institutions set both boundaries and incentives for entrepreneurial actions, thus influencing the nature and pace of the development of entrepreneurship. It is the interplay between formal and informal institutions through the values and incentives it provides that matter in this regard. This is particularly apparent in challenging environments, as in transition economies, emerging markets or war-torn countries, and highly relevant in turbulent situations such as the current global health pandemic with its enormous consequences for entrepreneurship. Informal institutions often substitute for formal institutions, providing the values that in turn guide the different forms of entrepreneurial actions observed, including formal or informal, and commercial, social and environmental. The chapter offers some pointers on how to gain further insights into the interplay of formal and informal institutions by broadening theoretical lenses and methodological considerations.