1. Quick decision making – 

Sole trade refers to that form of business organization which is owned by a single individual, who is the recipient of all profits and bearer of all risks, and whenever he gets any profit, he takes its full benefit. 

2. Secrecy – 

The rights of any decision is kept to himself by any sole trader. Therefore, there is a lot of secrecy maintained in this business. He doesn’t need to reveal his documents. 

3. Direct Incentive – 

Here, only one person is the sole recipient of all the profits. This motivates the proprietor to work harder. 

4. Sense of accomplishment – 

When the sole trader receives profit/gain because of his/her own hard work, he/she feels proud of himself and becomes satisfied. 

5. Full control – 

In sole trade, the proprietor is the all in all of a business which he establishes and manages. As he operates the business himself, thus he has full control over the functioning and working of the business. 

6. Rare information and closure – 

A sole trade business requires hardly any legal formality to set it up. Anybody wishing to set up sole trade can do so without spending much time. Closure of business can also be done easily. 

7. Economic Scenario – 

Sole trader operates his business alone. He fully utilizes the resources available and tries to limit his expenses. 

8. Alertness – 

In case of loss, the sole trader has to bear the entire loss, so he always remains alert and well – versed with the business environment and situations. 

9. Individual Contact – 

To attract the customers, a sole trader behaves very politely and treats them with courtesy. This enables him to maintain personal contact with the customers. 

10 Advantage of ancestral goodwill – 

As a sole trader runs the same business as his forefathers, therefore he enjoys the benefit of their goodwill. 

11. Good Relation with employees – 

A sole trader individually gets in touch with his employees and shares their happy and sad moments. And thus, the employees work with full devotion. 

12. Liberty of business – 

A sole trader is the only responsible person and has full liberty in every decision he takes including when to start and stop the business and make any changes that are needed to be implemented.