A sole tradership is the oldest form of business organisation:
It is easy and simple to organise. It is found in each and every country in the world. This type of organisation has not lost its utility even today. Sole proprietorship is a form of organisation in which an individual invests the entire capital, uses his own skill and is solely responsible for the result of his business. He may borrow money and employ assistants. But he alone owns and controls the business and bears its profit and loss. The only legal formality is to get a licence from the local authority viz, municipality, panchayat, etc., for running certain type of business. It is also known as individual proprietorship or one-man business. The person who contributes capital and manages the business is called sole trader or sole proprietor.

(i) Where small amount of capital is required, ego Sweet shops, Bakery shops, Petty shops, etc.
(ii) Where quick decisions are very important, ego Share-brokers, Doctors, etc.
(iii) Where limited risk is involved, ego Automobile repair shops, Small retail stores,etc.,
(iv) Where personal attention to individual tastes and fashions of customers is required, ego Beauty parlours, Tailoring shops, etc., .
(v) Where the demand is local, seasonalor temporary, ego Retail trade, Laundry, Fruit sellers, etc.,

Single person's intelligence and experience may not help him beyond a certain stage. Since he has to focus on each and every activity. his managerial ability is bound to be limited.

(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.

Unlimited Liability:
When his business assets are not sufficient to pay off the business debts he has to pay from his personal property.

In sole proprietorship as the trader is the sole owner of the business, the secrecy can be maintained easily.