The factors listed below illustrate how a sole proprietor will be successful against large entrepreneur.

1. Normally, a business is stated as one-man venture, because of the many advantages it offers. As the proprietor makes a success of it and is faced with the problem of expansion, he resorts to the formation of the company. If his capital needs are not vast and he wishes to presume his secrecy and family character of business he will form a private company.

2. As the proprietor is in close touch with the trade and results are quickly known, the advantage of economic stability, direct motivation, personal contact interest inherent in sole proprietorship sustains one man business along with giant concerns. As a result in the field of distribution, in particular this form of organisation continues to flourish all over the world.

3. In the field of production, too, there are certain industries which can be run successfully only on a small scale. For example, industries whose products cannot be standardised and establishments which attempt to make products to suit the different tastes of consumers can best be owned and run by sole proprietors. Such industries produced tailored suits, high grade furniture, art goods, handicrafts, finally bound books, etc.


4. In India, Government has been encouraging individual owners to take up small manufacturing activities by selling up industrial estates and by providing training facilities, as well as by granting financial assistance. The National Small Industries Corporation has been rendering a useful service in this direction.

5. The vast majority of the service enterprises such as transport and warehousing are normally organised as sole proprietorship. Professional such as chartered accountants, lawyers, doctors, teachers, etc. function only as sole proprietor or partnership.

6. It is always economical to run a sole trading business because the sole proprietor knows all that he is spending is going from his pocket. He tries to purchase goods at the lowest rate and tries to make profits as high as possible which is not in the case of partnership etc.

It is clear from the above discussion that single proprietorship is not in danger of being wiped out by large business houses.