There has been a great surge of interest in seniors’ entrepreneurial activity from both entrepreneurship researchers and policy-makers. This paper investigates the considerable variation in the rate of seniors’ entrepreneurial activity across countries. Building on institutional theory, we investigate the impact of public expenditures, specifically related to seniors’ health, pension, and education, on their entrepreneurial activity. We propose that public expenditures affect the propensity of seniors’ entrepreneurial activity mediated by the actual outcomes of public expenditures, measured with health status, poverty rate, and educational attainment of seniors. Instead of focusing solely on the overall entrepreneurial activity of seniors, we suggest that the institutional arrangements might trigger start-ups driven by particular motives (necessity vs. opportunity). By doing so, we provide new insights into seniors’ participation in entrepreneurial activities empowered by a specific institutional factor.