There are several reasons why entrepreneurs might over leverage their businesses:
1. Aggressive Growth Strategies: Entrepreneurs often aim for rapid scalability and may take on substantial debt to fund expansion. 2. Underestimation of Risks: New entrepreneurs might underestimate the risks associated with high debt levels, assuming that increased revenues will cover debt repayments. 3. Market Opportunities: Sometimes, market opportunities demand quick action, leading entrepreneurs to borrow heavily to capitalize on them.