Rate of profit

In economics and finance, the profit rate is the relative profitability of an investment project, a capitalist enterprise or a whole capitalist economy. It is similar to the concept of rate of return on investment. Scholarship has shown that the profit rate has fallen since 1945, especially after the Great Recession.

Entrepreneurship drives a need to maintain (a) the rate of profit and (b) "meeting a finite payoff period on capital investment."

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