When institutions are heterogeneous in their support of the efficiency of markets, there are consequences for entrepreneurial opportunities developed within them. The stability and flexibility provided by establishment and enforcement of institutions will matter comparatively more for some kinds of opportunities and less for others, suggesting the question: assuming discovery and creation opportunities can co-exist in the same geographical space, are certain regulatory institutions more supportive of one type of opportunity than another? We argue that institutional arrangements that promote stability and support entrepreneurs’ ability to assess risk lead to more discovery-type opportunities relative to creation-type opportunities, while institutions that promote flexibility and support entrepreneurs’ ability to iterate and pivot will foster more creation-type opportunities relative to discovery-type opportunities.