Final answer:
Jim and Sabin at the inception of Cousins Maine Lobster would be considered early-stage entrepreneurs lacking management skills. They demonstrated commitment by investing their own money, gaining the attention of angel investors and venture capitalists who offer advice and strive to understand the business to mitigate risks.
Step-by-step explanation:
When cousins Jim and Sabin first started Cousins Maine Lobster, they could be considered early-stage entrepreneurs. Despite having a good idea for their innovative business, they lacked general management skills and business know-how, which are crucial for successful entrepreneurship. At this point, they demonstrated their commitment by investing their own money, signifying a belief in their business prospects. In such scenarios, angel investors and venture capitalists play a pivotal role. They aim to minimize the risk of imperfect information by personally getting to know the entrepreneurs, understanding their business plans, and offering them advice to improve their chances of success.