Everything you need to know about advantages of sole proprietorship. Sole proprietorship means single ownership.

Thus a sole proprietorship business means a business owned by a single person. A sole proprietor puts in his own money (capital) into the business.

He may also borrow from others at his own risk. He uses his own skills or employs people working under his direction. He is in personal touch with customers as well as suppliers of the business.

He takes all the decisions concerning the business and is completely responsible for the profits made or losses incurred by the business. Such a person is called a “Sole Trader”.


In the words of L.H. Haney, “The individual entrepreneurship is the form of business organization on the head of which stands an individual as the one who is responsible, who directs its operations, who alone runs the risk of failure.”

The advantages of sole proprietorship are as follows:-

1. Easy to Form 2. Direct Motivation 3. Full Control 4. Quick Decisions 5. Economical and Efficient Operations 6. Personal Touch 7. Keep the Business Simple, Dynamic and Flexible 8. Keep the Secrets Close to Heart

9. Society Gains as a Whole 10. Facility of Co-Ordination 11. Promptness in Decision-Making 12. Flexibility in Management 13. Direct Motivation 14. Promptness in Decision-Making 15. Secrecy 16. Credit Standing 17. Freedom from Government Regulation and a Few Other Advantages.

Advantages of Sole Proprietorship: Easy to Form, Direct Motivation, Full Control, Quick Decisions and a Few Others

Advantages of Sole Proprietorship – 9 Advantages: Easy to Form, Kick in the Belly, Full Control, Quick Decisions, Economical and Efficient Operations and a Few Others 

A sole proprietorship offers the following advantages:

Advantage # 1. Easy to Form:


Proprietary concerns can be formed easily and quickly. Very few legal formalities need to be fulfilled. There is no need to go for any registration or enter into an agreement with someone. One can form it and dissolve it quickly.

Advantage # 2. Kick in the Belly:

Proprietary ventures give a kick in the belly. You can burn the candle of energies and make money. You take the risk and get rewarded. The effort-reward relationship often excites people to chase creative ideas and turn them into successful ventures.

Advantage # 3. Full Control:

The owner has full control over everything. He is answerable to no one else. He decides everything in the best interests of the business. Right or wrong, he takes charge of the situation. The venture is a mirror image of the owner’s confidence in himself. The business acts like an energy booster and keeps the owner on his toes always. It is the freedom to think and act independently that gives the maximum amount of satisfaction to the owner.

Advantage # 4. Quick Decisions:


Proprietors can take quick steps and dispose of things promptly. If they have to consult someone, the opportunities may not wait for long. If a quick decision to grant a fat discount to a loyal customer brings them additional business, they can do so on the spot.

Advantage # 5. Economical and Efficient Operations:

The owner can put together his sources to the best use. He can take steps to eliminate wastage of all kinds. He can control the cost of running the show. He can get the maximum benefit out of every piece of operation. The threat of losing his grip over his business and being pushed to a corner by rivals keeps him vigilant, alert and cautious.

Advantage # 6. Personal Touch:

The owner can bring his skills, knowledge, and expertise to the table. He can play with his ideas and get them going. He can convert his dreams into concrete realities. He can make things happen by using his brilliance to good advantage. Everything that an owner does is something unique, special, and convincingly real. With that extra effort a small business owner can build a fortune for himself.

Advantage # 7. Keep the Business Simple, Dynamic and Flexible:

The owner can cut everything according to the cloth available. If there is demand, he can pump more money into the venture. He can increase the scale and reach. If the demand is sluggish, he can carefully monitor everything, and order only those products that are in demand by the end users. He can run the show in sync with changing customers’ tastes and preferences.

Advantage # 8. Keep the Secrets Close to Heart:

The proprietor need not place all his cards on the table. Nor is he required to share any information with anyone else. The story of his journey from rags to riches need not be made public if he chooses to hide it from public scrutiny. The success mantra can take him to places. And he can use it profitably wherever he wants to.

Advantage # 9. Society Gains as a Whole:

Small proprietary concerns offer exciting as well as rewarding opportunities for people who are not willing to work for others. Such people can dream big, give imagination to their thoughts and start their ventures by exploiting some gaps in the market to their benefit. Small businesses make people self-reliant. Once the owners taste success, they are able to offer job opportunities to others.

Local resources are put to the best advantage. If many such units sprout up in select locations, the local economy also develops rapidly. The locals get the best of both worlds, by getting quality products at affordable prices in proximity. Local youth are also gainfully employed. Wealth does not stay concentrated in a few hands. Society as a whole benefits greatly from the entrepreneurial ventures of various kinds.

Advantages of Sole Proprietorship – 8 Major Advantages: Ease of Formation and Dissolution, Direct Motivation, Facility of Co-Ordination and a Few Others  

1. Ease of Formation and Dissolution:

As if has been pointed out no legal-formalities are necessary for setting up the business in this form. It is, thus, the most easily formed of all the forms of business organisation. Any person enjoying the capacity to contract can set up such an organisation. As Lundz puts it, “Becoming a proprietor is as simple as buying newspapers for 3 cents and selling them on a street corner for a nickel (5 cents).”

Dissolution, termination, or sale of the business is equally simple in the case of a sole-proprietorship. There are no legal formalities in this regard and all that the businessman has to arrange for is the satisfaction of creditors’ claims. A sole proprietor may wash his hands off his business selling his interest to another person or association of persons.

2. Direct Motivation:


The direct relationship between effort and reward serves as a powerful incentive to the proprietor to manage the concern efficiently. It encourages and induces him to put forth his best in the management of this business. He knows that any lapse on his part will mean loss of profits.

3. Facility of Co-Ordination:

The proprietor himself has to decide everything and, therefore, he will not take a decision by which the various interests of the firm clash. Moreover, he knows his employees personally and, therefore, he is able to ensure that they work as a team.

4. Promptness in Decision-Making:

An individual entrepreneur need not consult others while deciding the affairs of his concern. This makes for quicker decisions by which he can take advantage of the opportunities of gain arising from time to time.

5. Flexibility in Management:

If any change in business is called for, he does not have to consult anyone and, therefore, he will be able to make the change without delay. This gives flexibility to this type of organisation. A good number of giant-size concerns fail on account of their inability to change their policies promptly to meet a change in the situation.

6. Credit Standing:


If an individual proprietor has enough resources (cash or investments) outside the firm, he will enjoy a favourable credit standing among suppliers and other firms and institutions dealing with him. The creditor will look forward to satisfaction of their claims out of this personal wealth. Thus, his private resources will serve as a kind of second line of defense beyond the firm’s assets as security for debts.

7. Freedom from Government Regulation:

Sole proprietorship is the least regulated form of business organisation. “Restrictive laws on sole proprietorship generally are limited to those affecting all citizens as individuals.” Of course, a sole proprietorship does have to comply with tax and labour laws like other establishments but there is no legal regulation of formation or dissolution for this form of organisation.

Social Utility of Sole Proprietorship:

Apart from being advantageous to the owner of the firm, single ownership form of organisation is useful for society in general in the following respects:


1. Promotes Independent Living:

It is source of independent way of living. As the sole proprietorship requires one man to be all-in-all of his business, it is very suitable for those members of the community who want to be self-dependent and utilize their capacity to the maximum.

2. Develops Social Virtues:

It is a generator of social virtues. Since the sole-proprietor has to be independent, he has to face all sorts of problems himself. Constant fighting with these problems inculcates in him the social virtues like initiative, firm will, independent thinking and so on enabling him to command a respectable life in the society.

3. Avoids Concentration of Economic Power:

It avoids concentration of economic power. Since sole-proprietorship business is done relatively on a small scale, large number of people can share the business ownership, thus, avoiding concentration of economic power in a few hands through giant units.

Advantages of Sole Proprietorship – 5 Main Advantages: Quick Decision Making, Confidentiality of Information, Direct Incentive and a Few Others    


The main advantages of sole proprietorship are:

Advantage # 1. Quick Decision Making:

Sole proprietor enjoys complete freedom in taking the decisions. It facilitates quick decision-making as there is no need to consult others. He takes all major or minor decisions. Timely decisions help him to take advantage of market opportunities as and when they arise.

Advantage # 2. Confidentiality of Information:

The maintenance of full secrecy is very important for the success of a business. As proprietor has the sole decision making authority, it enables him to retain all information related to business operations confidential. Sole trader is also not bound by law to publish firm’s accounts.

Advantage # 3. Direct Incentive:


The proprietor enjoys all the profits of the business as there is no one else to share earnings of the business. Direct relationship between efforts and reward encourages him to work hard and earn more.

Advantage # 4. Sense of Accomplishment:

Sole proprietorship provides personal satisfaction to people who want to be self-employed. As the proprietor is himself responsible for the success of business, it not only provides him satisfaction but also creates a sense of accomplishment and confidence.

Advantage # 5. Ease of Formation and Closure:

Sole proprietorship can be easily started or dissolved at any time with minimum legal formalities. No separate law governs sole proprietorship. So, it can be started or closed down easily at the will of the proprietor.

Advantages of Sole Proprietorship – 17 Important Advantages: Ease of Formation, Ease of Operation, Quick Decision Making, Effective Control and a Few Others 

A sole proprietary form of business has many advantages.


These are as follows:

Advantage # 1. Ease of Formation:

The establishment of sole proprietary concern is very easy and simple. There is no need for detailed legal formalities to form such a concern.

Advantage # 2. Ease of Operation:

It is very easy to carry on business operations. The day to day working is free from legal interference. There is flexibility in operations. Since the sole trader takes all decisions, he can steer his business any which way he wishes. He can choose to enter any new business he wishes to. He can similarly decide to close down any business division. He can quickly adapt to any change in circumstances, as he need not consult or convince anybody.

Advantage # 3. Quick Decision Making:

The sole proprietor is in touch with the day to day operations of the business. He is the sole decision making authority. Hence, if there is any situation requiring an immediate decision, it is possible for the proprietor take any decision which he thinks is appropriate. The decision is followed up with prompt action. This advantage is not there in case of any other form of organization.

Advantage # 4. Effective Control:

The sole proprietor takes all the decisions of the business. The scale of business is usually small. The group of people with whom the proprietor needs to deal with, be it customers, suppliers or employees, is usually small. Since the proprietor is completely involved in all business activities, he is in complete control of his business. He knows exactly what is to be done and how to do it.

Advantage # 5. Economies of Operation:

All the activities undertaken by the business are under the close personal supervision of the proprietor. The proprietor will not incur any expenses unless it is necessary. He will also ensure that any expenses that are necessary to be incurred are kept to the minimum.


The size of the business is also small. The sole trader is the owner, manager and controller of the business. He does may or may not appoint specialists for various functions. The staff mostly consists of family members and acquaintances. Thus, expenses of operation are minimal.

Advantage # 6. Incentive to Work:

The proprietary form of business provides the best incentive to improve performance. All the profits resulting from efforts made by the proprietor are enjoyed by him. Moreover, laxity or indifference on his part will result in losses, which he alone has to suffer. Thus, the proprietor will put in his best efforts.

Advantage # 7. Personal Relations with Employees:

Since the proprietor is in touch with the operations and his staff, he is able to understand the difficulties faced by employees, not only at the time of work, but also at a personal level. If he can solve their problems, he will have a strong, motivated, result oriented team.

Advantage # 8. Direct Contact with Customers:

The sole proprietor is always in direct contact with his customers. He is therefore able to understand their changing needs better. He can ascertain their taste, attitude and habits and understand their difficulties. He is able to react faster to the changing situation.

Advantage # 9. Better Terms from Suppliers:

The sole proprietor deals with his customers suppliers directly. He is therefore able to know any new product or technology that has come into the market. He is able to react faster to the changing situation. His personal relations with the suppliers enable him to better terms such as increased credit period, lower prices, etc.

Advantage # 10. Business Secrecy:

Success in business stems out of specific advantages. Such advantages are a result of superior knowledge, which may be technical know-how, cheapest sources of supply of material, an efficient process of manufacture, etc. This knowledge is developed by the proprietor by his tact, foresight and skill. This knowledge need not be shared by the proprietor with others.

Advantage # 11. Financial Position:

Sole proprietor has unlimited liability. Thus, he is likely to raise more funds as the amount available as security to the lender extends not only to business assets, but also personal assets. Moreover, he will not be able to borrow more than what he can repay, as financial position is monitored by the lenders. Thus, the borrowing pattern of a sole proprietor is a judicious mix of caution and aggression.

Advantage # 12. Succession Planning:

A business is initially started for survival and growth. However, as the proprietor grows older, he hands over the business to his sons/daughters. Thus, the next generation takes a lot of interest and learns the various aspects of the business. The businessman thus ensures that the next generation in his family also has a genuine source of earning their livelihood. As a result, the business is also assured of a long life.

Advantage # 13. Self-Employment and Employment to Others:

Sole proprietary form of organization provides an alternative for capable people who are not able to get employment. It serves a useful social purpose as lack of employment can result in of frustration among such people, leading to crime. Proprietary concerns provide opportunities for employment to other people, there by serving the society.

Advantage # 14. Independence:

The virtue of proprietary form of business is that the proprietor is totally independent. He enjoys total freedom on all business matters. It is eminently suitable for people who wish to be self-sufficient.

Advantage # 15. Personality Development:

Sole proprietorship inculcates in a person the ability to analyze and face difficult situations. It improves self-confidence and self-reliance of the owner. It encourages initiative and innovativeness. It improves his communication and presentation skills. Thus, it leads to over all personality development.

Advantage # 16. Prevention of Concentration of Wealth:

Sole proprietary concerns can be started in a small way. Thus, even people with limited resources can start a small venture of their own. Business need not be started by only large industrial groups. Thus, there is diffusion of ownership and prevention of concentration of wealth.

Advantage # 17. Easy Dissolution:

The proprietor can decide to close down his business at any time. He does not have to go through lengthy legal procedures or obtain approvals. Thus, proprietary form of business is ideal for experimenting with new ideas. If ideas fail, business can be shut down and losses can be minimized.

Advantages of Sole Proprietorship – Top 8 Advantages: Easy Formation and Closure, Flexibility, Quick Decision-Making, Secrecy of Information and a Few Others  

Advantages of sole proprietorship are as follows:

Advantage # 1. Easy Formation and Closure:

Formation and closure of sole proprietorship is quite easy. An individual with a small amount of money can start the business as a sole proprietorship firm. There is no legal formality in forming the firm. However, a sole proprietor is required to complete specific legal formalities while doing some types of businesses like opening a medical shop, dealing in liquor, etc. In the same way, the sole proprietorship may be dissolved easily as this also does not involve any legal formalities.

Advantage # 2. Flexibility:

Sole proprietorship is a highly flexible form of business organisation as businesses may be added and closed without any legal formality (subject to restricted business) or permission of anyone. This is possible because the sole proprietor has the sole authority to do this.

Advantage # 3. Quick Decision-Making:

There is quick decision-making in sole proprietorship as all the decisions are made by a single person, though in the case of need, he may consult others while making decisions.

Advantage # 4. Secrecy of Information:

There is very high secrecy of information in sole proprietorship because the sole proprietor is not bound to share business information with others. In many cases, secrecy of information is quite helpful for business operations, for example, keeping secret profit margin of an entirely new type of business to restrain the entry of possible competitors.

Advantage # 5. Direct Incentive:

Sole proprietorship provides direct incentive to the concerned businessman as he alone is entitled to keep the profit earned by the business subject to payment of income tax. Thus, there is direct relationship between efforts and rewards which is quite motivating.

Advantage # 6. Sense of Accomplishment:

Sole proprietor­ship tends to provide a high sense of accomplishment as the owner handles all the business dimensions single-handedly. If the business is successful, the owner feels that he has done something meaningful in his life.

Advantage # 7. Low Overheads:

Sole proprietorship involves low overheads because the sole proprietor manages the business affairs himself. Thus, managing cost is quite low, resulting in low overheads on account of managing costs.

Advantage # 8. Social Utility:

Sole proprietorship operates mostly on small-scale basis. Their number is quite large. Therefore, such firms are found in the vicinity of customers, thereby minimising their time and efforts required in buying relevant products. This is a very good form of creating social utility by sole proprietorship.

Advantages of Sole Proprietorship

The various advantages of sole proprietorship form of business are outlined below:

1. Quick decision making – A sole proprietor enjoys centralised control over his business. Therefore, he is likely to take prompt business decisions without consulting anyone.

2. Confidentiality of information – A sole proprietor is not bound by law to publish firm’s accounts. Therefore, he can easily maintain confidentiality of information by keeping all the information related to business operations to himself.

3. Direct incentive – A sole proprietor has a direct motive to strive hard for the success of his business. Being a sole owner the proprietor does not need to share profits of his business with any one.

4. Sense of accomplishment – The success of a sole proprietorship business is a direct outcome of the efforts of the proprietor himself. As a result, a sole proprietor gets immense personal satisfaction on his achievements in business.

5. Ease of formation and closure – Generally, minimum legal formalities are involved in setting up or closing down a sole proprietorship form of business. Therefore, it is said that the formation and closure of sole proprietorship form of business is relatively easy.

Advantages of Sole Proprietorship – 7 Popular Advantages

1. Quick Decision Making – A sole proprietor being the single owner, has full freedom to take business decisions without consulting others. Right decision will be taken at right time.

2. Confidentiality of Information – A sole proprietor can keep all business informations to himself, i.e., confidential and maintain secrecy because he is not bound by law to publish his accounts.

3. Simple Formation and Closure – Not many legal formalities are required to start a sole proprietary business. Also, the closure of the business can also be done easily.

4. Direct Incentive of Profit – The proprietor gets all the profits of the business as there is no one else to share the business profits. It is a big incentive. The more he works, the more he gains.

5. Sense of Accomplishment and Achievement – When the business is successful, it leads to self-satisfaction of the sole proprietor and creates a sense of accomplishment and achievement.

6. Flexibility of Operations – Under sole proprietorship all decisions are taken by a single individual. Therefore, there are no delays and the business quickly adapts itself to the changing business needs. It provides flexibility to the business.

7. Personal Touch – In a sole proprietorship firm, generally all the work is carried out by the proprietor himself. So, he is able to maintain a direct contact with the customers and employees and can make changes in products according to demands of the customers.

Advantages of Sole Proprietorship – Top 8 Advantages

The sole proprietorship form of business is the most simple and common in our country.

It has the following advantages:

1. Easy to Form and Wind up – A sole proprietorship form of business is very easy to form. With a very small amount of capital you can start the business. There is no need to comply with any legal formalities except for those businesses which required licence from local authorities or health department of government. Just like formation it is also very easy to wind up the business. It is your sole discretion to form or wind up the business at any time.

2. Direct Motivation – The profits earned belong to the sole proprietor alone and he bears the risk of losses as well. Thus, there is a direct link between effort and reward. If he works hard, then there is a possibility of getting more profit and of course, he will be the sole beneficiary of this profit. Nobody will share this reward with him. This provides strong motivation for the sole proprietor to work hard.

3. Quick Decision and Prompt Action – In a sole proprietorship business the sole proprietor alone is responsible for all decisions. Of course, he can consult others. But he is free to take any decision on his own. Since no one else is involved in decision making it becomes quick and prompt action can be taken on the basis of this decision.

4. Better Control – In sole proprietorship business the proprietor has full control over each and every activity of the business. He is the planner as well as the organiser, who coordinates every activity in an efficient manner. Since the proprietor has all authority with him, it is possible to exercise better control over business.

5. Maintenance of Business Secrets – Business secrecy is an important factor for every business. It refers to keeping the future plans, technical competencies, business strategies, etc., secret from outsiders or competitors. In the case of sole proprietorship business, the proprietor is in a very good position to keep his plans to himself since management and control are in his hands. There is no need to disclose any information to others.

6. Close Personal Relation – The sole proprietor is always in a position to maintain good personal contact with the customers and employees. Direct contact enables the sole proprietor to know the individual likes, dislikes and tastes of the customers. Also, it helps in maintaining close and friendly relations with the employees and thus, business runs smoothly.

7. Flexibility in Operation – The sole proprietor is free to change the nature and scope of business operations as and when required as per his decision. A sole proprietor can expand or curtail his business according to the requirement. Suppose, as the owner of a bookshop, you have been selling books for school students. If you want to expand your business you can decide to sell stationery items like pen, pencil, register, etc. If you are running an STD booth, you can expand your business by installing a fax machine in your booth.

8. Encourages Self-Employment – Sole proprietorship form of business organisation leads to creation of employment opportunities for people. Not only is the owner self-employed, sometimes he also creates job opportunities for others. You must have observed in different shops that there are a number of employees assisting the owner in selling goods to the customers. Thus, it helps in reducing poverty and unemployment in the country.

Advantages of Sole Proprietorship

1. Ease of Formation and Dissolution – It is the most easily from of all the forms of business organisation. Any person enjoying the capacity to contract can set up such an organisation dissolution, termination, or sale of business is equally simple in the case of a sole-proprietorship. These are no legal formalities in this regard and all that the businessman has to arrange for is the satisfaction of creditors’ claims. A sole proprietor may wash his hands off his business selling his interest to another person or association of persons.

2. Facility of Co-ordination – There is no problem of co-ordination. The proprietor himself has to decide everything and therefore, he will not take a decision by which the various interests of the firms clash.

3. Promptness in Decision-Making – Promptness in decision is another advantage of this form. This makes for quicker decisions by which he can take advantage of the opportunities of gain arising from time to time.

4. Flexibility in Management – If any change in business is called for he does not have to consult any one and, therefore, he will be able to make the change without delay. This gives flexibility to this type of organisation.

5. Secrecy – Secrecy can be maintained about business matters and, therefore, the proprietor will be able to take full advantage of any new ideas that occur to him. There is little risk of the competitors taking advantage of them.

6. Credit Standing – If an individual proprietor has enough resources cash or investments outside the firm, he will enjoy a favourable credit standing among suppliers and others firms an institutions dealing with him. The creditors will look forward to satisfaction of their claims out of his personal wealth. Thus his private resources will serve as a kind of second line of defense beyond the firm’s assets as security for debts.

7. Freedom From Government Regulation – Sole proprietorship is the last regulated forms of business organisation. “Restrictive laws on sole proprietorship generally are limited to those affecting all citizens as individuals”. Of course, a sole proprietorship does have to comply with tax and labour laws like other establishments but there is no legal regulation of formation or dissolution for this form of organisation.

Advantages of Sole Proprietorship

(i) Easy and Simple Formation – A sole trading concern can be formed without any difficulty. Unlike other forms, no legal formalities are necessary for its formation. It can be started and can also be closed according to wishes and whims of the sole trader. Thus, there are no legal formalities for expansion, contraction or dissolution of the business enterprise.

(ii) Direct and Exclusive Control – The proprietor has full authority to manage the business. He is not accountable to anyone and nobody interferes in his working. Thus, there is no problem of co-ordination; he is in a better position to maintain good relations with all his employees if any.

(iii) Promptness in Decision Making – The sole trader is the sole dictator of the business and rela­tively free from outside interference. He is capable of taking prompt action so necessary for business success.

(iv) Direct Motivation and Incentive to Work – The owner enjoys the entire profits of the concern alone. The existence of the direct relationship between the efforts and the reward survives as a powerful incentive and makes the sole trader work very hard and mange his concern most efficiently.

(v) Maintenance of Secrecy – In any business enterprise, maintenance of business secrecy is an important factor; and it is in this individual entrepreneurial organization that the sole trader will get this object fulfilled as there is no need to give publicity to accounts and affairs of this business.

(vi) Personal Touch with Customers – As the enterprise is generally small and most often the pro­prietor himself manages it, he can develop close personal relations with his customers. This promotes customer satisfaction which, subsequently, adds to goodwill of that concern.

(vii) Economy in Management – The business of sole proprietorship is mostly supervised, managed and controlled by the sole proprietor alone or with the help of his relatives and friends and sometimes by one or two paid assistants; hence the costs of management are comparatively lower.

(viii) Minimum Government Regulation – The operatives of a sole proprietor are regulated by govern­ment and law to the minimum extent. He of course, has to comply with tax and labor laws, but otherwise he is free from interference. There are legal formalities in formation, expansion or dissolution of the business enterprises.

(ix) Socially Significant – Sole proprietorship is important from social point of view also. It is a means for earning livelihood independently. The owner is his own master. It ensures diffusion of business ownership and, thus, concentration of wealth and power in a few hands is avoided.

It, further, helps the development of entrepreneurial qualities such as self-reliance, self-confidence, responsibility, tact and initiative etc. in the individual entrepreneurs.

Advantages of Sole Proprietorship – 9 Major Advantages

1. Easy Formation – It is easy to form and dissolve a sole proprietary concern. No deed is necessary. There are no legal formalities and registration of the firm also is not necessary. Therefore, minimum time and cost are involved in the formation and dissolution of sole proprietorship concern.

2. Quick Decision and Prompt Action – The sole proprietor is its own boss and need not consult others while making any decision. He exercises exclusive control over the affairs of the firm. Therefore, he can take decisions without any delay in all matters connected to his business and can implement them without any delay.

3. Highly Flexible – It is a highly flexible type of organisation. The proprietor can adopt and adjust the activities of the business units to the changing market condition.

4. Direct Contact with The customers – The sole trader exercises direct control over the affairs of the business. This direct relationship with the customer helps the proprietor to ascertain the nature of attitudes, tastes, habits and needs of the customers. Therefore he can effectively satisfy the requirement of his customers which will enhance reputation of the concern.

5. Business Secrecy – Maintenance of business secrecy is very easy in a sole proprietorship concern. He can retain important business secrets. This will avoid competition from outsiders.

6. Efficient management – In case of sole proprietorship, the entire profit goes to the proprietor. This motivates him to work hard which shall make him an efficient administrator.

7. Independent Living – Sole proprietorship business provides an independent way of the life for people who do not wish to work under others. The individual can earn their livelihood independently with the help of their business skill and professional drive. It makes people self-dependent.

8. Better Employee Relations – The sole proprietor has direct relationship with his employees who are also comparatively less in the number. Therefore, the chances for conflicts with his employees are remote.

9. Social Utility – It provides a scope for independent living, development of personality and diffusion of economic power which is useful to the society.