Essay Disadvantages Of Sole Traders

14.14 Disadvantages of sole traders
The main disadvantages are problems such as with sickness or holidays although this does not apply if there are a large number of employees.
14.15 Planning permission and small businesses
In some countries if someone wishes to establish a business from their own home, which is likely to be a nuisance to neighbours such as a kennelling service for dogs or repairing many different cars during the course of the day, it may be difficult to obtain the necessary planning permission. On the other hand, where the nuisance factor does not exist people may be able to work at home in occupations such as bookkeepers or accountants. People having taken the IAB (International Association of Book-keepers) examinations

Many people like the idea of being able to make decisions for themselves, rather than being part of a bigger organisation where increasingly less freedom is a common part of many jobs.
14.18 Too many roles
One of the major problems for any sole trader is that they are unlikely to competent in all the different roles which they are expected to play. However, some of the problems resulting from too many roles may be overcome by employing other people such as marketing consultants or accountants for the functions in which the sole proprietor is weak.
14.19 Reasons for the decline of sole traders
There has been a considerable decline in sole traders in retailing in recent years, partly with greater competition from supermarkets. Greater car ownership has meant that in many cases people will go further for what they perceive to be the lower prices of the supermarkets.
14.20 Why sole traders exist in some occupations
There are many sole traders in the road haulage industry, partly because the cost of the vehicle is still within reach of an ordinary individual. The same applies to the taxi industry.
14.21 Unlimited