This article explores influential forces on public sector entrepreneurship in two different organizational forms: the local government administration and the local government corporation. In arguing for the need to consider the context of organizational form, this article presents a development beyond existing research on public entrepreneurship (PE) which so far has been conducted only to a limited extent. The inductive analysis identifies factors not previously perceived as influential on PE. These findings support the importance of distinguishing between organizational forms. Finally, the findings can be used for formulating hypotheses possible to test in larger research designs.