Why sole proprietorship is common in Pakistan?

Answer 1

It's the easiest to form. Fewest legal hurdles and startup expenses, usually. Other forms of business entities require legal contracts to be drawn up.

Answer 2

Sole properietor is common in Pakistan because of:

1: lack of education.

2:family trend.

3:personal interest.

4:govt. restriction.

5:decision power.

6:venture.

7:capital/low cost.

8:secret life.

9:land owner.

10:security.

Answer 3

the first reason is that it is simplest form of business it can easily establish without any government's permission ... and second reason is that due to poverty and illiteracy people give priority to establish this form of business....

Answer 4

Pakistan is a developing country. As such, the citizens of Pakistan have limited capital to build a business upon. Anything above a sole-trade business would be too costly for many. Furthermore, due to relatively low standards of living, people rely on 'around-the-corner' convenience shops rather than hypermarkets and such. The concepts of retailing trends like that of 'the working-lady', 'online delivery' and 'credit' are mostly undeveloped and so, only sole trade can truly be evident.

Answer 5

It's the easiest to form. Fewest legal hurdles and startup expenses, usually. Other forms of business entities require legal contracts to be drawn up.

Answer 6

It's the easiest to form. Fewest legal hurdles andstart up expenses, usually. Other forms of business entities require legal contracts to be drawn up.