Easy and simple form of business organisation.
No legal formalities are required to be observed.
Business can be wind up any time if the proprietor so decides.
Nobody interferes in the affairs of the sole proprietary organisation.
So, quick decision can be taken.
Entire profit of the business goes to the owner.
Motivates the proprietor to work hard and run the business efficiently.
Easy to effect changes as per the requirements of the business.
Not require many formalities
Business secrets are known only to the proprietor.
Not required to disclose any information.
Not bound to publish his business accounts.
Easy to maintain a good personal contact with the customers and employees.
Helps to run business smoothly.
Not always possible to arrange sufficient funds.
Proprietor has a limited capacity to raise funds for his business.
Illness, death or insolvency of the proprietor can lead to closure of the business.
So, continuity of business is uncertain.
Personal properties of the owner can also be used to meet the business obligations and debts.
Resources and the managerial ability is limited, so, not suitable for large-scale business.
A Single person may not be an expert in all fields like, purchasing, selling, financing etc.