Implicit Cost in Entrepreneurship
Implicit costs are the costs of using resources owned and supplied by the entrepreneur himself in the business. These costs are not recorded in the accounting books but are essential for determining the true economic cost of running a business.

Explanation:

1. Opportunity Cost:
Implicit costs are often referred to as opportunity costs because they represent the value of the next best alternative foregone when resources are used in the business. For example, if an entrepreneur decides to use his own building for the business instead of renting it out, the implicit cost would be the rental income forgone.

2. Use of Personal Skills:
Entrepreneurs often contribute their own skills, such as management expertise or technical knowledge, to the business. The implicit cost of these skills is the salary that the entrepreneur could have earned by working for another company.

3. Investment of Personal Funds:
Entrepreneurs may invest their own money in the business instead of taking out a loan. The implicit cost of this investment would be the interest that could have been earned if the money was invested elsewhere.

4. Risk and Uncertainty:
Implicit costs also include the risks and uncertainties associated with entrepreneurship. The entrepreneur takes on the risk of business failure, which has an implicit cost in terms of the potential loss of investment and future earning opportunities.
In conclusion, implicit costs play a crucial role in determining the true cost of running a business and should be taken into account when making business decisions.