“You have sole ownership of your vision and the Universe will give you what you want within your vision”
Sole proprietorship or individual proprietorship is the simplest oldest and in some respect the most natural form of business organization in the private sector. When the mankind merged out of the stone era, he was referred as “Homo Sapiens” who started business in sloe ownership. In this form a single individual is solely responsible for providing the capital, for bearing the risks and for the overall management and control of the enterprise. It is a one-man show owned, financed and operated by one person. The leading feature of this kind of concern is that the individual assumes full responsibility for the risks connected with the conduct of the also considered organizer and manager. He takes all the profits or responsibility for losses of the business.
“It is the simplest form of business which is owned and controlled by one man”
“Sole proprietorship is a type of business organization in which one person owns and operates a business”
Example of Sole Tradership
Retailer Tourist Guide
Carpenter Beauty Parlor
Barber Doctor or Accountant etc.
Shoe Service Shop Petrol Pumps
Characteristics of Sole Tradership / Merits of Sole Business
Small Size, door step services, limited life, success of business, secrecy, easily transferable business to another, easy dissolution, earn profit only one, unlimited liability, legal restriction, ownership
Demerits of Sole Tradership / Disadvantage of Sole Tradership
Shortage of capital, unlimited liability, dependent on owner, difficulty in credit, lack of skilled person or staff, ineffective distribution of work, cost of production, entire burden of loss or work, not durable, lack of public confidence, lack of inspection, continuity, lack of incentives, take wrong decision, difficulty in expansion in business, no legal rules to run the business
Represented by Seerat Francis