Average Entrepreneurial Income Falls 11.5% Due to Pandemic

Entrepreneurs are one of the business sectors most vulnerable to the impact of pandemics. This is because entrepreneurs bear the risk of shouldering losses themselves, especially during times of uncertainty such as economic crises.

The Central Statistics Agency (BPS) reported that the average monthly net income of self-employed individuals was Rp 1,669,000 in February 2021. This figure decreased by 11.51% compared to February 2020, which was Rp 1,886,000 per month.

During economic or global health crises like the current one, entrepreneurs face economic risks, such as the failure to recoup production costs.

When business conditions are good, self-employed individuals can enjoy the fruits of their labor to the fullest. However, when business is down, many businesses often have to close down because they cannot cope with the losses incurred.

Furthermore, the income level of self-employed individuals has not been better than that of wage earners. In recent years, the average national income of self-employed individuals has only ranged from Rp 1.5 million to Rp 1.9 million per month. This figure is even lower than the national minimum wage.