One of the most important aspects of an entrepreneurial journey is access to capital. It further accentuates in regions that are marginalized due to terrorism, lack of order, natural calamities, or extremes of climate. The literature on sources of funding and funding has been studied across models and geographies; however, we could not find any research done in recent times that studies the relationship between entrepreneurial attitude, intention, Behaviour, and the source of early-stage seed funding. Drawing on the Theory of Planned Behaviour and a focused group of tourism micro entrepreneurs from Kashmir valley, we have tried to investigate the moderation effect of entrepreneurial fear of failure. A survey was conducted with 288 tourism micro entrepreneurs in the marginalised areas of Kashmir—Boniyar, Kupwara, and Baramulla. Before testing the hypotheses, suitable reliability and validity tests were conducted. This included using the Cronbach alpha test for establishing the scale’s reliability, using confirmatory factor analysis (CFA) for testing convergent validity, and checking to ensure that no common method of bias was present in the data. The study found that there was a significant positive effect on entrepreneurial Behaviour by the entrepreneur’s intent. This is also reflected in the positive effect of entrepreneurial attitude on entrepreneurial intent. The analysis reveals that the relationship between entrepreneurial intent and entrepreneurial Behaviour was most positively affected by public funding, followed by venture capital, and least positively affected by crowdfunding. Primary funding institutions like the government will benefit from this study to plan future public start-up schemes that would address the fear of failure for tourism micro-entrepreneurs. Other funding sources like VC and Angel Investors would understand the apprehensions of this segment of entrepreneurs and may accordingly customise their funding offers or may hedge their risks.