Entrepreneurs are the ones who conceive an idea and start to believe that it is the most original idea, whereas all ideas have some kind of influence from external factors and the associating industries which dilute the purity of the idea. When entrepreneurs start to believe the idea to be their original and develop rigid trust of deserving funding for the same, it becomes the most arrogant position which makes them repel probable investments that could have come their way. This is because the investors equally assess the entrepreneur’s attitude and capability to accept their faults as one of the most significant factor of their decision, as the people running the business are also to be equally assessed as much as the business idea. Clifford(2012) speaks about the entrepreneur’s problem of offering too much equity too soon because if the idea is very good and one third equity is offered in the first round, the second and subsequent round of fund raising will keep the entrepreneur with very little equity and thus less power to control the business and its decisions. This is recognised as a common mistake of entrepreneurs. One more problem is their ill-preparation of the pitch which makes them lose the potential investment, even though the idea is absolutely phenomenal and the investors are convinced about their investment and the probability of the idea becoming successful.
The most important and first problem faced by entrepreneurs’ is the lack of funding and confidence to get that funding. There is no scarcity of innovative business ideas which can revolutionise the market but the lack of funding for the same is lacking. In addition, lack of proper training to prepare for the pitch which makes the idea compelling, and the lack of access to such potential investors are common problems faced by entrepreneurs in many countries (Carsrud and Brännback, 2007).
Entrepreneurs also have a common problem of copying someone else’s idea and converting it into their own with a bit of twisting. This is due to lack of potential investors and the lack of an infrastructure where the two entities can connect and network for a business venture.