Final answer:
Entrepreneurs risk time and money for the possibility of monetary success and market innovation, while investors like venture capitalists play a key role in the early stages by providing insights and advice to mitigate risks.
Step-by-step explanation:
Entrepreneurs risk time and money to start and operate a business due to a number of reasons. They are individuals who organize productive resources and make calculated risks to create goods or services. By investing their own money, entrepreneurs demonstrate a belief in their business's prospects, often possessing better insights into the effort required for success compared to others.
Angel investors and venture capitalists play a crucial role during the early stages of a business by attempting to mitigate the risks associated with imperfect information. They do this by getting to know the managers and the business plan personally, and by offering advice which might not be readily available to the founders, further enhancing the potential for success.
Ultimately, entrepreneurs are motivated by the possibility of monetary success and the chance to introduce new or improved products to the market, which, if successful, can lead to significant economic contributions and innovation.