Part 4/8:
The second category of so-called passive income—entrepreneurial income—involves businesses that ostensibly operate on autopilot. The idea of setting up a self-sustaining business sounds appealing, but the truth is that many small business owners report working significantly harder than those in traditional employment.
Ideas such as dropshipping or creating digital products seem enticing due to their perceived low effort and costs. However, establishing a dropshipping store requires significant market research, supplier vetting, and promotional strategies to stand out among a saturated market. With thousands of potential competitors emerging daily, the ease of entry often leads to massive oversupply, making it challenging to sustain profits.