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Entrepreneurship: Salaries

There are no salaries for being an entrepreneur. That's the point. You are paid what you earn using your business wits. There is lots of upside. And, of course, plenty of downside as well.

There are numerous examples of entrepreneurs, large and small, that have created over $10 million in value within the first few years of business. While many business ventures never get off the ground, others soar to unexpected heights, with great speed. Following are some typical figures regarding entrepreneurs. Keep in mind that they may vary greatly depending on the type of venture.

Typical return on assets after 5 years for surviving firms: 25% to 300%

Typical amount of start-up financing: $25-200,000

Form of financing: No more than 30% debt

Valuation in sale: 10-20 times cash flow

Typical interest on SBA Loan: Prime + 4%

Fraction of failures: 68%

Typical time commitment: 60-80 hours per week

Fraction of female entrepreneurs: 34%

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