In continuing a reflective and critical investigation, this chapter shows how entrepreneurial people who create entrepreneurial organisations find their best habitat in entrepreneurial environments, the third building block of this book. An in-depth understanding of underpinning contextual and situational issues as they apply to entrepreneurial environments is covered together with the meaning, purpose and role of institutions in an entrepreneurship environment. Given the importance of framework conditions and their application to different entrepreneurial environments, the chapter uses knowledge of key tools with which to develop a framework for analysing entrepreneurial environments in different contexts.