Final answer:
Entrepreneurs typically work hard and take calculated risks when starting a business. Startups are risky, often starting as mere ideas, but the commitment of founders, demonstrated by their own investments, can attract further financing and advice from early-stage investors.
Step-by-step explanation:
Entrepreneurs often work incredibly hard, especially when they first start their businesses. These individuals are not only pioneers in innovation but also the key drivers of the economy due to their willingness to take on risks and invest their own capital. Entrepreneurs are typically seen as 'risk-takers', but successful ones are calculated in their approach, carefully assessing the potential returns against the risks involved.
Startup firms, which can often be nothing more than an idea on paper, represent a significant gamble. The unique insight that the founders have regarding their commitment and the feasibility of their venture's success can encourage investments from others. Founders investing personally in the business sends a strong signal of confidence in their vision, which can help attract early-stage investors like angel investors and venture capitalists. These investors contribute not just with capital but also with invaluable guidance, helping to bridge the gap created by imperfect information.