Entrepreneurial income

Entrepreneurial income refers to the profit earned by entrepreneurs from their business activities after covering all expenses, including opportunity costs—the income they forego from alternative ventures. Unlike wages or salaries, which are fixed payments for work, entrepreneurial income varies based on the success and profitability of the business. It represents the reward for the risk, innovation, and effort entrepreneurs invest. Essentially, it’s the income generated from successfully managing and growing a business, reflecting the value created through entrepreneurial efforts beyond just covering costs.