Why have many discontinued the practice of sole proprietorship business.

[TOZZIBLINKZ]

Sole proprietorship business is one of the most practiced business category among the categories of partnership , public and limited companies , joint ventures , statutory companies , and other public enterprises etc . Yet , a lot of individual have considered discontinuing the practice of sole proprietorship due to some certain factors that has rendered it stressful and problematic in nature . Below are some of these factors :

RISK BEARING : just as the sole proprietor enjoys all the profit and good incentive that comes into the business he also bears the risk all alone . Risk incured or acquired in the operating process of the business is Borne solely by the owner , thus if the business is successful , he rejoice but when it fails he suffer it all alone .

NON-GUARANTEED SPECIALISATION: specialisation in a sole proprietorship business is not guaranteed and in most cases is considered not to happen at all since the owner of the business is involved in every section of the business . He works very hard and may not take public holidays and scarcely have rest . And in most cases when he's absent the business may close down temporarily by not making profit during the days absented .

 

[Caramelle]

Sole proprietorships, like other forms of business, have their pros and cons. Single proprietorship is the most popular form of business simply because it is the easiest to start and usually requires the least capital. Once a person decides to start a business and have it registered, a single proprietorship is born.

Depending on the amount of capital, a sole proprietorship business may be able to hire employees who will take many burdens off the owners. As for risks, sole proprietors will bear the risks for their own decisions and actions concerning the business. I can imagine that it is even worse in partnerships where you, as a partner, would also be liable for your partners' actions and decisions within the business. Of course, you'll have more limited risk and liabilities under a corporate setup but it's a more complicated form of business and it is also under stricter supervision by government regulatory bodies.

One of the biggest advantages of a sole proprietorship is the owner's full control over the business. The owners set the direction for their business which makes decision-making a smoother experience. They also have full access to the earnings of the business.

If one is too anxious about risks in a sole proprietorship, the concept of a one-person corporation may prove to be attractive. A one-person corporation is in substance a sole proprietorship but in form, it takes on a corporate nature and as such, it places limitations on the owner's liability for the debts and losses of the business.​

 

[Kingsley]

The sole proprietorship business which also popularly know a the one man business has a lot of advantages and it also has its disadvantages aswel. Well when look at one of it major advantage we may say he makes all the decisions of the business by himself, hence all the benefits that accrued to the business goes directly into his pocket and on the disadvantage we say he bears all the risk alone. One major reason why most entrepreneurs are finding the sole proprietorship business unattractive is as a result of the economic situation in this country today. Everyone is finding finding very difficult to survive in this country as the economy is nothing to write home about. Now let's take for instance someone that is into the sale of drinks even in a good location where there are people. The person will have to struggle to pay for the high cost of rent, electricity which even scarely available and the cost of fuelling the generator to make the drinks chilled enough is so high as the prices of petrol has skyrocketed, how will such a person cope we have not included transportation and feeding. So all these challenges is making alot discouraged.

 

[Sotherefore]

Business is business and all these things carries their own risk and both a sole proprietorship business and a partnership business has their own advantage and disadvantage.

In a sole proprietorship business the risks of the business is being handled by the real owner of the business because he or she has decided to run the business alone , And also all the needed capital that is required to run and maintain the business will be generated by the real owner of the business. That is the only disadvantage of a sole proprietorship business.

In the other and it can also be profitable because all the profit that is generated by the business will be handled by one man also. But nowadays sole proprietorship business are difficult to start and people who have opportunity to do it have to make adequate plans and arrangement not to experience failure.

There are so many reasons people may discontinued their business , it could be because they do not have the required capital anymore and sometimes the business is not booming as they expected it to be. It could even be a simple thing like bad location that could hinders people's business from progressing perfectly as it should. there are so many reasons for business failure.