The gross income from entrepreneurship is a greatness that can be derived from a company's results accounts, and is used for business analysis to assess entrepreneur's contribution to business results. In practice, this method of analysis is used to map the consequences of (entrepreneurial) incapacity for the entrepreneur for his / her earning capacity. The founder of this method of analysis is the economist Drs. M.J. van der eijk.
The gross income from entrepreneurship (sometimes also referred to as the economic value of entrepreneurship) is calculated by deducting labor costs from the gross profit of the company (revenue less purchase costs). The gross income from entrepreneurship shows, by this definition, what value the entrepreneur adds to the purchased work and goods with his labor. An entrepreneur adds this value through three groups of entrepreneurial activities: commercial activities, organizing activities and a contribution to the executive work within the company.
The commercial activities focus on the development of gross profit. In addition, the activities can be focused on qualitative growth, with a high gross profit margin between the purchase price and the selling price being pursued and / or on quantitative growth, increasing sales. This distinction is usually important in the analysis of the consequences of disability. The entrepreneur's medical and occupational limitations due to his incapacity for work may be of various significance for qualitative or quantitative entrepreneurial activities.
The organizational activities of the entrepreneur are aimed at the development of labor productivity of the staff. In addition, the business analysis analyzes in particular the correlation between gross earnings per employee in the company and labor costs per employee.
With its contribution to the executive work in the company, the entrepreneur adds a contribution to the result that is equal to the staff costs that he saves by performing this work himself.
Following the development of gross income from entrepreneurial work in a series of consecutive years, insight is gained in the effectiveness with which the entrepreneur knows the three above-mentioned groups of entrepreneurial activities.
In order to be able to achieve a pure assessment of gross income from entrepreneurship, it is important that staff costs only relate to the costs of externally attracted labor. Where a director is a major shareholder, there is a reward for the entrepreneur himself, which is part of the staff costs, a reorganization of the figures has to be made. The entrepreneur's remuneration components should then be eliminated from staff costs, so as to determine the gross income from entrepreneurship.
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