Advantages of the Sole Proprietorship:

i.Easy to form: It is comparatively quite easy to start this type of business because there are no laid down requirements with regard to its formation. One only needs a small capital to start with.

ii.Personal Interest: The owner controls the business so takes good care of it to avoid waste. Initiative, flexibility and efficiency are maintained. The spirit of self-interest to operate the business efficiently and with much dedication is also maintained.

iii.Quick Decision Making: The owner is the sole decision maker and does not need to go through any bureaucratic channels before arriving at a decision. This makes decision taking process very fast because it does not involve any communications.

iv.Secrecy:The business strategy is completely kept secret by the proprietor. He is not under any obligation to divulge his business secrets.

v.Intimate Relationship:due to the small size of the business, the proprietor maintains personal and close relationship with his workers. He also maintains close contact with customers.