The following are the benefits of only proprietorship firms:
a) Beginning of the firm: The proprietorship companies can be easily began without any lawful requirements and there is also little govt disturbance. Also it is simple to handle and control and it needs pretty lowest amount of investment for starting any issue.
b) Immediate action: The owner can take fast choices and prompt activity regarding his business, its place, method of manufacturing etc. He need not seek advice from others about problems, if any, in the case of any operating device.
c) Personal interest: He would always take personal attention in the company with a perspective to figuring out causes of reduction and wasteage of sources. He would then take actions to eliminate them and thus he would improve his earnings.
d) Specifications of consumers: Since he has immediate contact with his clients, he can perfectly be present at to all the requirements and he can generate products according to their wishes, preferences and needs. All his efforts to fulfill their needs will help him to improve the sales and thus it is appropriate for small businesses.
e) Friendly relations: He has immediate and continous contact with his employees. As such he can set up cordial interaction with them and this is because he will be in ongoing contact with them. He can also handle them straight. Under the circumstances as described above, any opportunity for issue between the employees and himself can be very well prevented.
f) Performance, effort and immediate gain: The owner will always make an effort to do their best, effectively and consistently and this allows have fun with the highest possible earnings and prevent any reduction since his responsibility is endless.
g) Company secrecy: He can perform his business matters in secrecy and he is not needed to give advertising to the actions of his issue nor reveal his earnings to the community. He can also make use of any new idea for his business.
h) Twisting up: Since he is the only individual accountable for starting the company and run the company he is having the make use of to end up his business at any point of time.
i) Economic system in expenses: Its expense costs are discovered to be very low. As such, it is discovered to be cost-effective and the variety of employees applied by him is discovered to be very low and due to smaller variety of employees he can reduce the expense costs.
j) Versatility and elasticity: Any modify in the company can be easily presented without talking to any body and therefore, it is versatile and versatile and it can easily and easily adjust to changes in the market conditions
k) Transferability: It is easily transferable to the lawful beneficiaries.
l) Self employment: It encourages self career, self dependency, growth of the character, self assurance etc.,
m) Reduced tax burden: It is also topic to reduce tax pressure than other types of economic company.
n) Focus of wealth: it inhibits power prosperity and earnings in the arms of few individuals.