- The capital required to start the business is small hence anybody who can spare small amounts of money can start one.
- Few formal/legal procedures are required to set up this business
- Decision making and implementation is fast because the proprietor does not have to consult anybody
- The trader has close and personal contact with customers. This helps them in knowing exactly what the customers need and hence satisfying those needs
- A sole proprietor is able to assess the credit-worthiness of his or her customers because of close personal relationship. Extending credit to a few carefully selected customers reduce the probability of bad debts.
- The trader is accountable to him/herself
- A sole trader is able to keep the top secrets of the business operations
- He/she enjoys all the profit
- A sole proprietorship is flexible. One can change the nature or even the location of business as need arises.