Sole proprietorship is suitable for following types of business:
(1) Less Capital : Those business which requires less capital and less use of machinery.
(2) Artistic Materials : Ivory work, painting, embroidery work, etc. where personal attention is necessary.
(3) Personal Services : Tailoring, hair-cutting, photography, etc. where personal service is more important.
(4) Small Industries : Small industries in which small equipment are required.
(5) Less Risk : Those business which have less risk in relation to capital employed and work required.
(6) Local Market : Vegetables, milk, eggs, etc. which are perishable and have local demand only.