Examining the Impact of Entrepreneurial Skills and Opportunities with the Moderating Role of Trust on Angel Investors’ Decisions in Gujarat

Abstract

Angel investors play a crucial role in nurturing entrepreneurial ventures at their early stages by providing both financial and strategic support. However, funding decisions are not solely based on the business idea but also on trust, communication, and entrepreneurial competencies. This study examines the impact of entrepreneurial skills and opportunities on angel investors’ decisions, with trust as a moderating factor. It also investigates the negative influence of fear of failure, entrepreneurial training, and quality of communication in shaping investor perceptions. A quantitative research methodology using survey-based data collection has been applied to entrepreneurs and investors across Gujarat. Statistical tests such as factor analysis, reliability testing, and regression/SEM were used for validation. The results confirm that entrepreneurial skills and opportunities positively affect investors’ trust and decision-making, while fear of failure and poor communication reduce funding prospects. The study contributes to the literature on entrepreneurial finance by providing a contextual understanding of angel investing in India and suggests pathways for entrepreneurs to enhance trustworthiness and funding potential.