A benefit of becoming an entrepreneur is the potential to earn more money compared with employment or self-employment. This is because starting a business offers uncapped “upside” (profit).
Entrepreneurs are typically averse to selling their time for money. Instead, they prefer to invest their efforts and resources in starting a business that becomes an asset, generating revenue whether they are directly working in it or not.
Some types of entrepreneurial income
Side hustle income
Some entrepreneurs aim to earn a complementary income stream alongside employed or self-employed earnings. This is called side hustle income, e.g. earning business income in addition to your main source of earnings.
Often, side hustle incomes can eclipse all other earnings, persuading entrepreneurs to give up their day jobs to work full-time on their business.
Passive income
Passive income refers to earnings that an entrepreneur makes without being directly tied to a specific unit of time. In other words, money that is made without being on duty, or as some prefer to say, earning whilst you sleep.
This is the idea that you can build a revenue-generating asset that earns for you indefinitely after you make it, without you having to supervise it. An example of passive income could be selling a digital e-book. You write it once, then you can sell it online indefinitely without constantly working on it.