Despite limitations of size and resources, many people continue to prefer sole proprietorship over other forms of organization. Why?

Despite limitations of size and resources, many people continue to prefer sole proprietorship over other forms of organization because of following merits: 

1. Easy to start and close: It can be easily started and closed without any legal formalities. 

2. Quick decision making: As sole trader is not required to consult or inform anybody about his decisions.

3. Secrecy: He is not expected to share his business decisions and secrets with anybody. 

4. Direct incentive: Direct relationship between efforts and reward provide incentive to the sole trader to work hard. 

5. Personal touch: The sole trader can maintain personal contacts with his customers and employees. 

6. Social utility: It provides employment to persons with limited money who are not interested to work under others. It prevents concentration of wealth in a few hands.