Following are the requisites of a successful enterprise: 

(i) Easy formation – If an enterprise is soon and conveniently to be established sole trading is recommended for a partnership the same minded partners with the same ideology have to be taken into the fold. 

(ii) Type of Business activities- An entrepreneur ought to be select his enterprise according to his business activities. 

(iii) Direct control- If an entrepreneur wants to keep strict control over the business activities and is not willing to brook any interference or contradiction he must prefer sole trading or personal and private company. 

(iv) Area of operation- In case the area of an enterprise is limited and confined to local area the sole trading will be the most suitable one but if it is vast area or ay national or international scale the enterprise should be in the form of company. 

(v) Availability of capital –If the availability of capital is adequate and the entrepreneur is self-sufficient he must prefer sole trading otherwise the partnership would be suitable and if much more capital is required than the formation of a company would do better. 

(vi) Government regulations- Each and every trade quite often has to observe the government regulations where as in large scale business enterprise there are many legal complications. As such in view of the above considerations, an entrepreneur has to make a judicious selection of his business enterprise.