ADVANTAGES OF SOLE PROPRIETORSHIP
Easy to Form and Wind Up:
Simple to start with minimal capital and few legal formalities.
Owner can close the business anytime at will.
Direct Motivation:
Owner keeps all profits and bears all losses.
Direct link between effort and reward encourages hard work.
Quick Decisions and Prompt Action:
Only one person makes decisions, allowing for fast and effective action.
Better Control:
Full control over all activities of the business.
Easy to coordinate and manage operations efficiently.
Maintenance of Business Secrets:
Owner can keep business plans confidential since no partners are involved.
Close Personal Relations:
Direct contact with customers helps understand their likes and dislikes.
Friendly relations with employees ensure smooth business operations.
Provides Self-Employment:
Creates employment for the owner and others.
Helps reduce poverty and unemployment in the country.