Sole proprietorship is a form of business enterprise which is established, financed, owned, managed and controlled by an individual entrepreneur, who has complete freedom of action, who bears all-the risks and authorized to all the profits.
So a business owned by a single person and operated for one’s own profit is named as sole proprietorship. The individual proprietorship or sole proprietorship is the oldest form of business organization. It is as old as the civilization old. Historically, it appears that business started first with this form of organization. It is the simplest and natural type of organization.
Sole proprietorship pakistan is also called individual business or proprietorship, or one man business. Sole proprietorship is legally a form of business organization in which an individual introduces his own capital, uses his own skill and intelligence in the management of its affairs, assumes all the risks of business and is solely responsible for the results of its operations. He, thus, owns all and risks all. The business is exclusively in the hands of an individual. Most of the hardware stores, service stations, barbers shop, doctors clinic, beauty parlors, are examples of sole proprietorship.
One man business is usually small but it can be large as a steel mill or a departmental store depending upon the resources available to the entrepreneur.