Meaning of a Sole Proprietorship

A sole proprietorship, also known as the sole trader or simply a proprietorship, is a type of business entity that is owned and run by one natural person and in which there is no legal distinction between the owner and the business.

The sole proprietorship is the oldest form of business units in Nigeria and in the world; it is a one man business which can be found everywhere, villages and town. It is a type of business unit that is managed by only one person with the aim of making profit.

Sources of Capital for Sole Proprietorship

The various means below are ways by which a sole proprietor can get finance for his/ her business

• Personal savings: this is the initial capital that the sole proprietor have saved for the purpose of starting a business
• Borrowing from friends and family: This is the means of going to friends and family for assistance to support the business.
• Loans from bank: This is going to either micro- finance bank or a commercial back to get loans in support of business. Loan is getting money and paying later with interest.
• Credit facilities from wholesalers or other distributors: this is receiving goods for sale from the manufacturers or wholesalers with the intention of paying the money later…

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