Merits (advantages) of a sole proprietor
- It is easy to set up the business. This is because it does not require many bureaucratic procedures of registration and documentation as for the case of other business organizations like partnerships.
- It does not require a lot of capital to set up the business. This promotes entrepreneurial abilities in the economy.
- There is quick decision making. This is because the business is owned and controlled by one person
- The benefits (profits) are enjoyed by the owner of the business alone unlike other business organizations where profits are shared among the business shareholders.
- It is easy to develop personal contact with the customer. This ensures that the customers’ needs are satisfied. ‘.. .
- The business owner has self-interest and motivation in business as opposed to the other forms of business organizations like the public enterprises.
- It is easy to supervise and manage the activities of the business unlike other business organizations.
- A sole business owner enjoys the secrecy of his business unlike other forms of business organizations like joint stock companies.
CATEGORIES Economics
TAGS Dr. Bbosa Science
