This study examines barriers to launching independent schools in Sweden. It analyzes ecoological and institutional factors affecting new school ventures under Sweden's school choice system. Using government data, interviews, and archival sources, the findings highlight school density as a key factor in competition and legitimation. As school numbers grow, competition restricts new entries, while legitimation foster expansion. Additionally, evolving regulations pose challenges, especially for nonprofit schools. The study suggests balanced regulations are needed to support educational innovation while maintaining quality in Sweden's independent school sector.