What is Sole Proprietorship?
A definition of Sole Proprietorship
“A sole proprietorship is a business owned and operated by one individual, without any legal distinction between the owner and the business entity.”

Business Glossary > What is Sole Proprietorship?
Examples of Sole Proprietorship in a Sentence:
She decided to start a sole proprietorship to pursue her passion for baking.
The local coffee shop is run as a sole proprietorship.
Running a sole proprietorship gives him complete control over his business decisions.
Why is Sole Proprietorship Important in Business?
A sole proprietorship is the simplest and most common form of business ownership. It is important because it allows individuals to start a business easily, with minimal legal oversight and maximum control over all business activities and revenue.
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Associated Terms
Here are some associated business terms and synonyms for “Sole Proprietorship”:
- Sole Trader
- Individual Entrepreneurship
- Single Proprietor
Company Example
Jane’s Bakery is a sole proprietorship owned and operated by Jane Doe. She started her business from her home kitchen and now runs a successful bakery that serves her local community. As a sole proprietor, she manages all aspects of her business, from production to marketing.
Final Notes on Sole Proprietorship
While a sole proprietorship offers complete control, entrepreneurs should consider potential risks such as unlimited personal liability, difficulties in raising capital, and the reliance on one person’s skills and abilities when choosing this business form.
This has been a definition of Sole Proprietorship meaning.
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