ROLE OF SOLE PROPRIETORSHIP IN THE SOCIETY

 ROLE OF SOLE PROPRIETORSHIP IN THE SOCIETY
Consumers are the kings. They decide the success of a
business. Their needs, desires, expectations are to be satisfied by
the businessmen. Sole proprietorship occupies a pivotal role in
satisfying the multifarious needs of consumers regarding goods and
services. The day to day requirements of the consumers such as
food items, cloth, stationaries, laundries, provisions, books and
newspapers, medicines etc., are supplied by the soletrader form of
organisation. The soletrader who supply these goods are respected
by the society. Thus the soletraders have a responsibility to promote
the welfare of the society. Sole proprietorship has its own areas of
activity and continues to exist inspite of the development of bigger
organisations. This form of organisation has a social desirability
also. It provides valuable services to the society. Its social necessity
arises due to the following ways.

1. Solution to unemployment problem
Sole trader business organisation gives large employment
opportunities to the less educated and uneducated persons and helps
to reduce the unemployment problem in the society.
2. Provides Investment Avenues
Soletrader organisation provides a chance for small investors
who has small amount of capital to utilise their savings in the
productive line.
3. Provision of goods at low price
Goods are sold by soletraders at a price lesser than the
maximum retail price ( MRP ) mentioned on the packages of the
goods. This is possible due to inexpensive management.
4. Helps small producers
Most of the goods sold by soletraders are procured locally
from local producers. Thus small local producers are benefited by
the soletraders.
5. Supply of Quality goods
Soletraders sell goods of high quality nowadays to maintain
their reputation. They even accept return of defective goods. This
ensures enhancing the welfare of the public.
6. Philanthrophic Activities
Soletraders form small trading organisation among
themselves and undertake a number of social welfare activities such
as conducting eye camps, maintaining parks, provision of baricades
on the roads, supplying furnitures to schools etc.
7. Equal Distribution of Income and Wealth
Equal distribution of income and wealth is ensured as there
are more entry of sole proprietors in trading activities.
8. Helpful to consumers
The soletraders supply the goods to the consumers at their
door steps. So the time and energy of the consumers are saved.