Entrepreneurial component of interest rate

From Mises Wiki, the global repository of classical-liberal thought
Jump to: navigation, search

Entrepreneurial component of the interest rate is the component of the gross or market interest rate which reflects the uncertainty element due to the entrepreneurial speculation present in every loan. The entrepreneurial component varies in each instance in accordance with the peculiar circumstances pertaining to the specific deal.[1]


  1. Percy L. Greaves, Jr. "Mises Made Easier ", 1974. Referenced 2014-07-10.