A sole trader business need not be registered with any authority as that of partnership and companies. Any person who has money can start the sole trader business. He is to obtain a licence from the local authority like municipality or panchayat.

The liability of a sole trader is unlimited. Since, apart from his business assets even his private properties are also available for satisfying the claims of creditors. Hence, creditors may give more loans because they can get back the loan from the personal properties of sole trader. Thus high credit rating helps sole trader to borrow more funds from suppliers and banks.

The liability of the Sole Proprietorship is unlimited. When his business assets are not sufficient to pay off the business debts he has to pay from his personal property.

The non-corporate enterprises are sole trading concern, partnership firm and Joint hindu family business.

A sole trader is a simple business structure whereby one individual runs and owns the entire business.

(i) It is a highly flexible type of organisation.
(ii) A sole proprietorship concern is generally run on a small scale basis.
(iii) A change in operation is possible without involving much expenditure.
(iv) The proprietor can adapt and adjust to the changing trends and market conditions because the sole trader is the sole owner of his business.

(i) The sole trader has to undertake all the work relating to business himself such as buying, selling, accounting, financing, advertising etc.
(ii) It would be difficult to avail the services of experts in his business because of small resources.
(iii) So, the benefits of division of labor and specialization cannot be obtained in this type of business.

Sole Proprietorship is a form of business organisation in which an individual introduces his own capital, uses his own skill and intelligence in the management of its affairs and is solely responsible for the results of its operations.

Grocery store, medical store, craft centre, legal consultancy, internet cafe, freelance writer, tutoring, catering company are some of the examples of sole trading businesses.

Ownership by one man:
The sole trader contributes the required capital. He is not only the owner of the business but also manages the entire affairs.
Freedom of work and Quick Decisions:
Since an individual is himself as a owner, he need not consult anybody else. Hence he can take quick decisions.
Maintenance of Secrecy:
In sole proprietorship as the sole owner manages all the affairs of the business, the secrecy can be maintained easily.

The personal interest of a sole trader in his business is to get more profits by maximising his earnings in his business. For this, the sole trader's relentless hardwork and continuous effort in knowing the market conditions conductive for his business. The following points are very important for profit-maximisation of a sole trader.
(i) High reward: This concept is based on hardwork i.e., there is a direct relationship between hard work and reward in a sole trading business.
(ii) Development and expansion of market: Here a sole trader has to cover a large segment of consumers for his business. by satisfying their varigated needs and having a cordial relationship between them whereby he can develop and expand the market for his business.
(iii) Investment avenues: Sole trading organisation provides chance for small investors to utilise their savings in productive line to increase the profits in the business.
(iv) Selling of goods at lower price: Normally a sole trader sells his goods at a price lesser than the maximum retail price in order to maximise his sales to increase his earnings out of it.
(v) Helpful to consumers: Since consumers are the kings in the business, a sole trader has to attract them by satisfying their needs, expectations and preferences for various products whereby he can increase his earnings in the business.
(vi) Equal distribution of income and wealth: Equal distribution of income and wealth is ensured as there are more entry of sole proprietors in trading activities.
Conclusion. Finally to conclude, hardwork and sincere effort of a sole trader brings high reward in monetary terms in sole trading business.

One-man control is the best in the world:
William R. Basset has said that one-man control is the best in the world only when the business is small indeed, to allow one actually to know and supervise everything in the business.
Following are some of the points in favour of one-man control:
(i) Easy and quick formation,
(ii) Direct control,
(iii) Efforts and reward are linked,
(iv) Retaining business secrets,
(v) Close touch with the consumers,
(vi) Enjoying all profits,
(vii) Inexpensive management,
(viii) No legal restrictions,
(ix) Direct contact with the employees and
(x) Social desirability.
Limitations of one-man control:
Though there are many advantages of one-man control, still it suffers from many drawbacks. One man is unable to manage all the affairs by himself. Basset says, "The danger is always present that he thinks, he knows which really he does not know".
Following are some points unfavourable for one-man control:
(i) Limited capital,
(ii) Limited managerial ability,
(iii) Unlimited liability,
(iv) Absence of large-scale business operation,
(v) Risky decisions and
(vi) Uncertainty.
In conclusion, one-man control is the best from the point of view of profitability and efficiency,provided that one man is big enough to manage everything efficiently.

The following are the disadvantages of a Sole trader:
a) Limited Capital:
Since the capital is contributed by one individual only, business operations have necessarily to be on a limited scale.
b) Limited Managerial Skill :
(1) Single person's intelligence and experience may not help him beyond a certain stage.
(2) Since he has to focus on each and every activity, his managerial ability is bound to be limited.
c) Unlimited Liability:
1. The liability of the proprietor for the debts of the business is unlimited.
2. The creditors have the right to recover their dues even from the personal property of the proprietor in case the business assets are not sufficient to pay their debts.
d) Lack of Specialisation:
Since the business unit is small and the financial resources are limited, experts in different fields cannot be employed to secure maximum advantages.
e) Hasty Decisions:
Sole proprietor is more likely to take hasty decision as he need not consult anybody else.

(i) Ownership by one Man:
(1) This is owned by the single person.
(2) The sole trader contributes the required capital.
(3) He is not only the owner of the business but also manages the entire affairs.
(ii) Freedom of work and Quick Decisions:
1. Since the individual is himself as an owner, he need not consult anybody else.
2. Hence he can take quick decisions.
(iii) Unlimited Liability:
When his business assets are not sufficient to pay off the business debts he has to pay from his personal property.
(iv) Enjoying Entire Profit:
He strives tirelessly for the improvement and expansion of his business and enjoys all the benefits of his hard work.
(v) Absence of Government Regulation:
1. A sole proprietor concern is free from Government regulations.
2. No legal formalities are to be observed in its formation, management or in its closure.
(vi) No Separate Entity:
The sole trading concern comes to an end with death, disability, insanity, and insolvency of the individual.
(vii) Maintenance of Secrecy:
In sole proprietorship as the sole owner manages all the affairs of the business, the secrecy can be maintained easily.