Advantages;

1. In sole proprietorship, business can easily be setup. A sole proprietor can easily conceive and start his/her own business or stop or close down because he is the direct owner.
2. Small capital is enough to operate the business. Because he/she is the sole owner, he/she can start the business with a little capital right away and he/she gets all the net profits.
3. Only one person directs the business. Only one person commands what or when to do things. Because he is the sole proprietor, he/she can do what he/she can do what he/she wants in running the business.
4. Only one person has interest in the business. As a sole proprietor, he/she is the only one who decides what to do and what not to do for his/her business.

Disadvantages;

1. A sole proprietor is overworked. A sole proprietor has too much work to handle if his/her business starts flourishing. He/She is prone to sickness if tired and overworked. When that happens, his/her business will be left behind and might close down.
2. The sole proprietor has unlimited liability such that the creditors can seize the properties or collaterals at the business once it becomes bankrupt. If the selling of the products of a business becomes slow or if the business becomes bankrupt and the proprietor cannot pay its investors and creditors, his properties and investments can be seized by investors and creditors according or corresponding to their money’s worth.