Owner Personally Knows Employees and Customers
Because most proprietorship are small, the proprietor and the employees know one another personally. This relationship can lead to mutual understanding an interest between employer and employees. These same benefits should also result from the close ties that the proprietor has with customers.
Owner Can Act Quickly in Decision Making
The sole proprietor is not blocked in making decisions. As there is no need to
consult others, the owner can act promptly when the need arises. If an unusual opportunity to buy merchandise or equipment occurs, or if the owner wishes to change the location of the business or to sell on credit terms rather than on a cash basis, there are no dissenting partners to stop such action. Thus, the management of a proprietorship is flexible and can adjust itself rapidly to changing conditions.