Sole proprietorship or individual proprietorship is the simplest, oldest and in some respect, the most natural form of business organization in the private sector. In this form a single individual is solely responsible for providing the capital, for bearing the risk and for overall management and control of the enterprise. It is a one-man show owned, managed and operated by one person.

A Business organisation owned by a single person’s capital investment and operated by the same single owner is the sole trading concern. Business person can easily establish this business organisation with small capital investment and a few legal formalities.

According to Professor Henry,” the individual proprietor is the form of business organization at the head of which stands an individual as one who is responsible, who directs its operations and who alone runs the risk of failure.”

According to L.H. Haney, “the form of business organisation at the head of which stands an individual as the one who is responsible, who directs its operations, who alone runs the risk of failure.”