A sole proprietorship is a form of legal organization in which the owner maintains sole and complete control over the business and is personally liable for business debts. There are no legal requirements for establishing a sole proprietorship business other than obtaining the necessary local business licenses and permits. In a sole proprietorship, income and loses “pass through” to the owner and are taxed at the owner’s personal income tax rate. The biggest drawback, however, is the unlimited personal liability for any and all debts of the business.
A business owned and managed by a person is called sole proprietorship. Sole proprietorships are the easiest kind of businesses to explore in your quest for an interesting career. According to Wheeler “ The sole proprietorship is the form of business which is owned and controlled by a person individual”
Factors of Choosing sole proprietorship :
There are many factors of choosing sole proprietorship. These are following:
? Ease of starting and closing the business: A business man can start or close his business at any moment. ? Being your own boss: The business man is all in all of his business. He can do whatever he/ she wants. ? Pride of ownership: The business man achieves all credit for taking risks and challenges that’s why he/she has the right to proud. ? Leaving a legacy: Owners can leave an ongoing business for future generations> ? Retention of company profit: Owners not only keeps the profits earned but also benefits from the increasing value as the business grows. ? No special taxes: Govt. don’t give any taxes over this business.
Contribution of Sole Proprietorship in Economy of Bangladesh:
Our is a developing country. Many people of our country are living under the poverty line. Most of the people of this country is unemployed. They don’t have enough facilities to start a massive business. So they open a sole proprietorship business. In our country there are more 75% of business are sole proprietorship business. As a result living stander of this country is increasing.
Sectors of Sole proprietorship In Bangladesh:
There are a lot of sectors for sole proprietorship in Bangladesh. These are given below….
• Grocery shops
• Hand Made Products
• Book Shops
• Hair Cut Saloon
• Beauty parlor
• Computer Accessories
• Retail shops
• Servicing shops
• Blocks and boutique shops
• Tea stall
Challenges for Sole proprietorship in Bangladesh:
Though Sole proprietorship is very popular in our country, it can face significant challenges.
These challenges are given below:
? Limited Capital
? Unlimited liability
? Unsuitable for large scale business
? Obstacles to expansion
? Personal risk of owner
? Limitation of opportunities for the employees
? Inefficient Management
? Inferior social status
? Uncertainty in duration
? Lack of credit facilities
In the world of globalization, sole proprietorship plays very important role in the overall economy. According to perspective of Bangladesh economy, sole proprietorship can create great opportunities by generating much employment facilities. If people are trying to be self employed, unemployed problems are eradicated. This is not possible in our country due to some problems that are faced by our young entrepreneur. First of all these problems should be solved. Government should take proper steps to solve these problems. Sufficient credit facilities should be provided so that entrepreneur can motivate to start a new business. Different types of training should be provided so that they can operate their business efficiently.
Sole proprietorship has a lot of challenges but it has a lot of facilities too that’s why people are interested to invest their money in the sole proprietorship business. In sole proprietorship business the possibility to become successful is more than any other business. The govt. of Bangladesh should come forward to increase the facilities of sole Proprietorship.