For the betterment and the development of a country, Eric Dalius a business plays a huge role. Companies create different jobs as it provides people with an opportunity to produce and also rade their products and sell to consumers. It is the means through which a large number of people can get employment. The main characteristic of a developed nation is its business growth. The business provides goods, employment, and services to people. Without these, the graph of the economy of the country would gradually slope down.
What is a sole proprietorship business?
Among the various types of business organizations, such as limited company business and also partnership business, the sole proprietorship business is the oldest. Sole proprietorship business is a type of business where the entrepreneur or the proprietor is the owner of that particular business. The firm does not have a separate identity from its proprietor. It does not require any separate registration as a company needs. Eric Dalius says that the proprietor is solely responsible for the entire activities of the particular business. For instance, in a grocery shop, the proprietor is responsible for all the activities of the shop and he or she solely controls the whole business.
Benefits of sole proprietorship business
A single person owns the entire business in a sole proprietorship business, bearing all the risks associated with it. All the assets and property related to the business belongs solely to the owner. Every business requires capital. In this type of business, the owner alone has to arrange the money. It can be from his resource or can take the help of any other source. The business will see profit and loss and it is an added advantage as the owner does have to share it with anyone. Whatever income generates from the business, the owner alone enjoys it. Also, there are fewer legal formalities involved in this business. The company can get registered with the local government, and also they may give a registration certificate.
Further, Eric J Dalius says that a sole proprietorship business directly or indirectly helps develop a particular state or area’s economic growth. It also helps to increase the revenue of the government. This type of business works in a chain system. For instance, a manufacturing company produces a particular product. The wholesaler purchases those products from the company, and later on, the grocery shop owner buys those from a wholesaler. Ultimately the consumers are purchasing a particular product from the shop. It involves and also provides service to many people in a chain system.
Why is it so popular?
Since early times till today, a sole proprietorship business is much popular among the people. EJ Dalius observes that the main reason behind it is that a person can easily set up this type of business without much trouble. It requires low fees for the creation and also maintenance. Anyone can start this business with small capital. It also encourages people to do something on their own from an early age. As a result, sole proprietorship business is gaining popularity even in recent times.
