Professional Documents
Culture Documents
Project Work On Bisleri.
Project Work On Bisleri.
Semester VI
(2020 - 2021)
Submitted by
Sameer Shaikh
Cosmopolitans’s
ValiaC.L.College of Commerce & Valia L.C. College of Arts
Semester VI
Submitted
In Partial Fulfillment of the
of
By
Sameer Shaikh
Cosmopolitans’s
(Signature of Student)
Sameer Shaikh
Roll no. 45
Cosmopolitans’
______________________ ______________________
______________________ ________________________
To list who all have helped me is difficult because they are so numerous
and the depth is so enormous.
Lastly, I would like to thank each and every person who directly or
indirectly helped me in the completion of the project especially my
Parents and Peers who supported me throughout my project.
CHAPTER 1 : INTRODUCTION
And just like in its formation, there is hardly any legal process involved in its closure. Overall it
allows for ease of doing business with minimum hassles.
Since there is no separation between the owner and the business, the liability of the owner is also
unlimited. So if the business is unable to meet its own liabilities, it will fall upon the proprietor to
pay them. All of his personal assets (like his car, house, other properties etc) may have to be sold
to meet the liabilities of the business.
The owner is the only risk bearer in a sole proprietorship. Since he is the only one financially
invested in the company, he must also bear all the risk. If the business fails or suffers losses he
will be the one affected.
However, he also enjoys all the profits from the business. He does not have to share his profits
with any other stakeholders since there are none. So he must bear the full risk in exchange for
enjoying full profits.
In legal terms, the business and the owner are one and the same. No separate legal identity will
be bestowed upon the sole proprietorship. So the owner will be responsible for all the activities
and transactions of the business.
Just as we saw above the business and the owner have one identity. So a sole proprietorship is
entirely dependent on its owner. The death, retirement, bankruptcy. Insanity, imprisonment etc
will have an effect on the sole proprietorship. In most of such cases, the proprietorship will cease
to exist and the business will come to an end.
The sole proprietorship is the simplest business form under which one can operate a business.
The sole proprietorship is not a legal entity. It simply refers to a person who owns the business
and is personally responsible for its debts. A sole proprietorship can operate under the name of
its owner or it can do business under a fictitious name, such as Nancy’s Nail Salon. The fictitious
name is simply a trade name—it does not create a legal entity separate from the sole proprietor
owner.
The sole proprietorship is a popular business form due to its simplicity, ease of setup, and
nominal cost. A sole proprietor need only register his or her name and secure local licenses, and
the sole proprietor is ready for business. A distinct disadvantage, however, is that the owner of a
sole proprietorship remains personally liable for all the business’s debts. So, if a sole proprietor
business runs into financial trouble, creditors can bring lawsuits against the business owner. If
such suits are successful, the owner will have to pay the business debts with his or her own
money.
The owner of a sole proprietorship typically signs contracts in his or her own name, because the
sole proprietorship has no separate identity under the law. The sole proprietor owner will
typically have customers write checks in the owner’s name, even if the business uses a fictitious
name. Sole proprietor owners can, and often do, commingle personal and business property and
funds, something that partnerships, LLCs and corporations cannot do. Sole proprietorships often
have their bank accounts in the name of the owner. Sole proprietors need not observe formalities
such as voting and meetings associated with the more complex business forms. Sole
proprietorships can bring lawsuits (and can be sued) using the name of the sole proprietor owner.
Many businesses begin as sole proprietorships and graduate to more complex business forms as
the business develops.
Because a sole proprietorship is indistinguishable from its owner, sole proprietorship taxation is
quite simple. The income earned by a sole proprietorship is income earned by its owner. A sole
proprietor reports the sole proprietorship income and/or losses and expenses by filling out and
filing a Schedule C, along with the standard Form 1040. Your profits and losses are first
recorded on a tax form called Schedule C, which is filed along with your 1040. Then the
“bottom-line amount” from Schedule C is transferred to your personal tax return. This aspect is
attractive because business losses you suffer may offset income earned from other sources.
As a sole proprietor, you must also file a Schedule SE with Form 1040. You use Schedule SE to
calculate how much self-employment tax you owe. You need not pay unemployment tax on
yourself, although you must pay unemployment tax on any employees of the business. Of course,
you won’t enjoy unemployment benefits should the business suffer.
Sole proprietors are personally liable for all debts of a sole proprietorship business. Let’s
examine this more closely because the potential liability can be alarming. Assume that a sole
proprietor borrows money to operate but the business loses its major customer, goes out of
business, and is unable to repay the loan. The sole proprietor is liable for the amount of the loan,
which can potentially consume all her personal assets.
Imagine an even worse scenario: The sole proprietor (or even one her employees) is involved in
a business-related accident in which someone is injured or killed. The resulting negligence case
can be brought against the sole proprietor owner and against her personal assets, such as her
bank account, her retirement accounts, and even her home.
Consider the preceding paragraphs carefully before selecting a sole proprietorship as your
business form. Accidents do happen, and businesses go out of business all the time. Any sole
proprietorship that suffers such an unfortunate circumstance is likely to quickly become a
nightmare for its owner.
If a sole proprietor is wronged by another party, he can bring a lawsuit in his own name.
Conversely, if a corporation or LLC is wronged by another party, the entity must bring its claim
under the name of the company.
A sole proprietorship is the simplest business structure in which one person is the owner and
operator of the business. This sole proprietor is responsible for all aspects of the business and
reaps all profits of the business.
Because there is no legal distinction between the business and the owner/operator, the
owner/operator is in direct control of the proprietorship’s activities and is accountable for all its
debts.
Other common business models include varying partnerships, corporations, limited liability
companies (LLC), and others. A big difference between sole proprietorships and these other
options is that the sole proprietor is solely in charge and responsible.
In partnerships, there are other persons sharing the responsibilities of the business. Another big
difference between sole proprietorships and corporations or LLCs is that the financial liability
lies with the LLC and not the individuals operating the LLC.
For example, if the LLC cannot pay its debts, the operators’ personal assets have protection
against debt collection for the LLC’s unpaid debts.
Beginning a sole proprietorship is easy. Unlike other business structures, starting a sole
proprietorship requires less paperwork and time to create a legal sole proprietorship.
It is cheap to start a sole proprietorship. Where other business structures have increased fees and
filings to open for business, sole proprietorships tend to be affordable models to start and
maintain.
There are some tax benefits for a sole proprietorship. Instead of the business having to file its
own tax return, sole proprietors claim businesses gains and losses on their own individual tax
return. Also, the sole proprietorship is taxed using individual income tax rates rather than
corporate making it simpler and cheaper to comply with your tax obligations.
Sole proprietors can employ others and grow their business. Sole proprietorships can hire others
and enjoy the tax benefits from doing so. Additionally, spouses of the owner can work for the
sole proprietorship without being declared as an employee.
Owners have complete and direct control over all decision making. Because the owner is the
business, the owner makes all decisions for the business rather than sharing power with a partner
or corporate board. This allows owners the freedom to drive the business in the direction they
desire.
Owners are fully liable. If business debts become overwhelming, the individual owner’s finances
will be impacted. When a sole proprietorship fails to pay its debts, the owner’s home, savings,
and other individual assets can be taken to satisfy those debts.
Self-employment taxes apply to sole proprietorships. Owners must pay self-employment taxes on
the business income.
Business continuity ends with the death or departure of the owner. Because the owner and the
sole proprietorship are one, if the owner dies or becomes incapacitated then the business dies
with them and the money and assets of the business become part of the individual’s estate. The
assets and money are subjected to inheritance taxes and can have a great impact on employees of
the sole proprietorship.
Raising capital is difficult. Initial funds of the business are generated by the owner and raising
funds for the business can be hard since they cannot issue stocks or other investment income.
Loans may also be difficult if the owner does not have enough credit to secure additional money.
Proprietary concerns can be formed easily and quickly. Very few legal formalities need to be
fulfilled. There is no need to go for any registration or enter into an agreement with someone.
One can form it and dissolve it quickly.
Proprietary ventures give a kick in the belly. You can burn the candle of energies and make
money. You take the risk and get rewarded. The effort-reward relationship often excites people
to chase creative ideas and turn them into successful ventures.
The owner has full control over everything. He is answerable to no one else. He decides
everything in the best interests of the business. Right or wrong, he takes charge of the situation.
The venture is a mirror image of the owner’s confidence in himself. The business acts like an
energy booster and keeps the owner on his toes always.
It is the freedom to think and act independently that gives the maximum amount of satisfaction to
the owner.
Proprietors can take quick steps and dispose of things promptly. If they have to consult someone,
the opportunities may not wait for long. If a quick decision to grant a fat discount to a loyal
customer brings them additional business, they can do so on the spot.
The owner can put together his sources to the best use. He can take steps to eliminate wastage of
all kinds. He can control the cost of running the show. He can get the maximum benefit out of
every piece of operation. The threat of losing his grip over his business and being pushed to a
corner by rivals keeps him vigilant, alert and cautious.
The owner can bring his skills, knowledge, and expertise to the table. He can play with his ideas
and get them going. He can convert his dreams into concrete realities. He can make things
happen by using his brilliance to good advantage. Everything that an owner does is something
unique, special, and convincingly real. With that extra effort a small business owner can build a
fortune for himself.
The owner can cut everything according to the cloth available. If there is demand, he can pump
more money into the venture. He can increase the scale and reach. If the demand is sluggish, he
can carefully monitor everything, and order only those products that are in demand by the end
users. He can run the show in sync with changing customers’ tastes and preferences.
The proprietor need not place all his cards on the table. Nor is he required to share any
information with anyone else. The story of his journey from rags to riches need not be made
public if he chooses to hide it from public scrutiny. The success mantra can take him to places.
And he can use it profitably wherever he wants to.
Small proprietary concerns offer exciting as well as rewarding opportunities for people who are
not willing to work for others. Such people can dream big, give imagination to their thoughts and
start their ventures by exploiting some gaps in the market to their benefit. Small businesses make
people self-reliant. Once the owners taste success, they are able to offer job opportunities to
others.
Local resources are put to the best advantage. If many such units sprout up in select locations,
the local economy also develops rapidly. The locals get the best of both worlds, by getting
quality products at affordable prices in proximity. Local youth are also gainfully employed.
Wealth does not stay concentrated in a few hands.
Society as a whole benefits greatly from the entrepreneurial ventures of various kinds.
As if has been pointed out no legal-formalities are necessary for setting up the business in this
form. It is, thus, the most easily formed of all the forms of business organization. Any person
enjoying the capacity to contract can set up such an organization. As Lundz puts it, “Becoming a
proprietor is as simple as buying newspapers for 3 cents and selling them on a street corner for a
nickel (5 cents).”
Dissolution, termination, or sale of the business is equally simple in the case of a sole-
proprietorship. There are no legal formalities in this regard and all that the businessman has to
arrange for is the satisfaction of creditors’ claims. A sole proprietor may wash his hands off his
business selling his interest to another person or association of persons.
The direct relationship between effort and reward serves as a powerful incentive to the proprietor
to manage the concern efficiently. It encourages and induces him to put forth his best in the
management of this business. He knows that any lapse on his part will mean loss of profits.
The proprietor himself has to decide everything and, therefore, he will not take a decision by
which the various interests of the firm clash. Moreover, he knows his employees personally and,
therefore, he is able to ensure that they work as a team.
An individual entrepreneur need not consult others while deciding the affairs of his concern. This
makes for quicker decisions by which he can take advantage of the opportunities of gain arising
from time to time.
If any change in business is called for, he does not have to consult anyone and, therefore, he will
be able to make the change without delay. This gives flexibility to this type of organisation. A
good number of giant-size concerns fail on account of their inability to change their policies
promptly to meet a change in the situation.
If an individual proprietor has enough resources (cash or investments) outside the firm, he will
enjoy a favourable credit standing among suppliers and other firms and institutions dealing with
him. The creditor will look forward to satisfaction of their claims out of this personal wealth.
Thus, his private resources will serve as a kind of second line of defense beyond the firm’s assets
as security for debts.
Sole proprietorship is the least regulated form of business organization. “Restrictive laws on sole
proprietorship generally are limited to those affecting all citizens as individuals.” Of course, a
sole proprietorship does have to comply with tax and labour laws like other establishments but
there is no legal regulation of formation or dissolution for this form of organization.
It is source of independent way of living. As the sole proprietorship requires one man to be all-
in-all of his business, it is very suitable for those members of the community who want to be
self-dependent and utilize their capacity to the maximum.
It is a generator of social virtues. Since the sole-proprietor has to be independent, he has to face
all sorts of problems himself. Constant fighting with these problems inculcates in him the social
virtues like initiative, firm will, independent thinking and so on enabling him to command a
respectable life in the society.
It avoids concentration of economic power. Since sole-proprietorship business is done relatively
on a small scale, large number of people can share the business ownership, thus, avoiding
concentration of economic power in a few hands through giant units.
Sole proprietor enjoys complete freedom in taking the decisions. It facilitates quick decision-
making as there is no need to consult others. He takes all major or minor decisions. Timely
decisions help him to take advantage of market opportunities as and when they arise.
The maintenance of full secrecy is very important for the success of a business. As proprietor has
the sole decision making authority, it enables him to retain all information related to business
operations confidential.
Sole trader is also not bound by law to publish firm’s accounts.
The proprietor enjoys all the profits of the business as there is no one else to share earnings of
the business. Direct relationship between efforts and reward encourages him to work hard and
earn more.
Sole proprietorship provides personal satisfaction to people who want to be self-employed. As
the proprietor is himself responsible for the success of business, it not only provides him
satisfaction but also creates a sense of accomplishment and confidence.
Sole proprietorship can be easily started or dissolved at any time with minimum legal
formalities. No separate law governs sole proprietorship. So, it can be started or closed down
easily at the will of the proprietor.
Sole proprietor enjoys complete freedom in taking the decisions. It facilitates quick decision-
making as there is no need to consult others. He takes all major or minor decisions. Timely
decisions help him to take advantage of market opportunities as and when they arise.
The maintenance of full secrecy is very important for the success of a business. As proprietor has
the sole decision making authority, it enables him to retain all information related to business
operations confidential.
Sole proprietary concerns can be started in a small way. Thus, even people with limited
resources can start a small venture of their own. Business need not be started by only large
industrial groups. Thus, there is diffusion of ownership and prevention of concentration of
wealth.
The proprietor can decide to close down his business at any time. He does not have to go through
lengthy legal procedures or obtain approvals. Thus, proprietary form of business is ideal for
experimenting with new ideas. If ideas fail, business can be shut down and losses can be
minimized.
A sole proprietorship is the most common form of business organization in the U.S. and includes
over 23 million people. This type of business represents 73 percent of all businesses in the U.S.
today.
A sole proprietor business is the easiest business type to start and operate. You don’t need to
formally register your business with your state, unlike corporations or LLCs. Some
disadvantages exist with a sole proprietor business, as well.
One question that’s often asked is the difference between a sole proprietor and an independent
contractor. A small business can be both a sole proprietor for the purpose of paying income taxes
and an independent contractor for the purpose of getting paid by companies for work.
If you are a sole proprietor or you have considered starting a sole proprietorship, find out more
about this business form. T’s easy to form, with no requirement to register with a state.
It’s easiest to run, with no regulations about having a board of directors, meeting minutes, or
annual meetings.
The owner is in complete control of the business, not having to answer to anyone.
The owner gets all of the profits of the business, but of course he or she must also take all of the
losses.
The benefits of starting your business as a sole proprietorship may or may not outweigh the
disadvantages, depending upon your own situation.
The biggest disadvantage of the sole proprietorship is that your personal legal and financial
situation and the business financial and legal situation are one and the same.
This means that a business bankruptcy would affect your personal finances. It also means that
any lawsuits against the business can affect you as an individual, or your family.
Another disadvantage of this business type is that you must pay income taxes and self-
employment tax (Social Security and Medicare tax) on the entire income of the business. If your
business is profitable, that can be a big bill to pay.
• A business name
• A business checking account
• A website, and some customers
You don’t need to register your business with your state, but you will need to take care of
some other legal matters. You’ll need to
• Get a business license with your locality
• Apply to the state for sales tax permits
• Get any specific licenses and permits, depending on the type of business you are starting.
For example, a food business will need a health permit.
• A sole proprietorship pays income taxes by completing a Schedule C and including this
income on the owner’s personal tax return.
• Schedule C lists all the income of your business and then all of the business expenses you
want to deduct. You can include home business expenses if you operate your business
from your home, and car expenses if you drive for business purposes.
• The total net income from Schedule C is then entered on Line 12 of your Form 1040,
along with income from other sources.
• You’ll calculate self-employment tax based on the net income of your business and add
this after the income tax is calculated. The income tax and self-employment tax are
totaled to arrive at your total tax liability.
The terms “sole proprietor” and “independent contractor” may be confusing. A small
business can be both a sole proprietor and an independent contractor.
The sole proprietor designation is a high-level description used for federal income tax purposes.
It means that a sole proprietor pays income taxes on revenue shown on Schedule C, on their
individual tax return, as detailed above. For example, a sole proprietor may produce and sell a
product to customers and pay taxes on the sales proceeds.
An independent contractor works for someone else and receives a 1099-MISC form (similar to a
W-2 form for employees) showing income for the year. They will show their income from the
1099 form as self-employment income on Schedule C.
1. According to L. H. Haney, “The individual entrepreneur ship is the form of business
organisation at the head of which stands an individual as the one who is responsible,
who directs its operations and who alone runs the risk of failure.”
3. According to Dr. John A. Shubin, “Under the sole proprietorship form of ownership a
single individual organises, has title to, and operates the business in his own name.
1. Sole Proprietorship:
The individual carries on business exclusively by and for himself. He invests his own capital and
controls the whole business. He bears all the risks and is the master of all the profits.
2. Free from Legal Formalities:
A sole trade business is not expected to meet any legal requirement. A sole trader may engage in
any business unless licence is required under law. Suppose, he wants to open a cloth shop or a
grocery store, he will do it but if he wants to open a restaurant he will have to obtain a licence
before opening the same.
3. Unlimited Liability:
In sole trade business, liability is unlimited. The proprietor bears all the losses arising from the
business. His private property is also liable for the business obligations.
4. Sole Management:
The sole trader manages the whole business himself. He prepares the plans and executes them
under his own supervision. He is not required to consult anyone else in taking decisions. The
ultimate authority to manage and control rests with the proprietor.
5. Secrecy:
It is also an important characteristic of sole proprietorship. All the decisions are taken by the
proprietor himself. He is in a position to keep his affairs to himself and maintain perfect secrecy
in all matters.
6. Freedom regarding Selection of Business:
A sole trader is at freedom to select any business of his choice. He has not to depend on others.
7. Proprietor and Proprietorship are One:
It is a fact that the sole trader and his business are not separate entities. Loss in the business is his
loss. Liabilities in the business are his liabilities. He bears all the risks and is the master of all the
profits.
When the scale of operations is small, then capital requirements will be less and sole
proprietorship is the most suitable form of organization.
“One-Man Control is the Best in the World, if One Man is Big Enough to Manage
Everything.”:
The sole proprietorship or one-man business is a form of organisation in which an individual
produces independently with his own capital, skill and intelligence and is entitled to receive all
profits and equally assumes all risks of ownership.
Despite its disadvantages and limitations, sole proprietorship form of organisation is very
popular.
William R. Basset, in his book, The Organisation of Modern Business says that:
“The one-man control is the best in the world if that one man is big enough to manage
everything. But a business must be small indeed to permit one man actually to know and to
supervise everything. The danger is always present that he thinks he knows when really he does
not know and naturally there is no permanency in this kind of management if the one man is
away or ill, the business stops and of course when he dies, business vanishes or has to be re-
built.”
According to William R. Basset, one-man controlled business is the best provided that man is
able to manage all activities efficiently and effectively. The sole proprietorship is easy to form
and is also free from legal formalities. The sole proprietor can take prompt decisions to avail all
business opportunities.
In sole proprietorship being one man the owner of the business, the secrecy, economy, prompt
decision and direct contact with customers, etc. are found.
It becomes clear from the above discussion that one-man control is the best in the world provided
that man is able to manage all activities efficiently and effectively. In practice, the sole proprietor
has to face many difficulties which are obstruction in the smooth running of the business.
Mobile broadband
The company launched its 4G broadband services throughout India in September 2016. It was
slated to release in December 2015 after some reports said that the company was waiting to
receive final permits from the government. Jio offers fourth-generation (4G) data and voice
services, along with peripheral services like instant messaging and streaming movies and music.
JioFiber
In August 2018, Jio began to test a new triple play fiber to the home service known tentatively as
JioGigaFiber, including broadband internet with speeds ranging from 100 to 1000 Mbit/s, as well
as television and landline telephone services.
In August 2019, it was announced that the service would officially launch on 5 September 2019
as JioFiber, in honour of the company’s third anniversary. Jio also announced plans to offer
streaming of films still in theatres (“First Day First Show”) to eligible JioFiber subscribers.
In the year 2015, the company has a network of more than 250,000 km of fiber optic cables in
the country, over which it will be partnering with local cable operators to get broader
connectivity for its broadband services.
LYF smartphones
June 2015, Jio entered into an agreement with domestic handset maker Intex to supply 4G
handsets capable of voice over LTE (VoLTE). However, in October 2015, Jio announced that it
would be launching its own mobile handset brand named LYF.
On 25 January 2016, the company launched its LYF smartphone series starting with Water 1,
through its chain of electronic retail outlets, Reliance Retail. Three more handset models have
been released so far, namely Water 2, Earth 1,and Flame 1.
Jio phone
JioPhone is a line of feature phones marketed by Jio. The first model, released in August 2017
(with public pre-orders beginning 24 August 2017), was positioned as an “affordable” LTE-
compatible feature phone. It runs the KaiOS platform (derived from the defunct Firefox OS), and
includes a 2.4-inch display, a dual-core processor, 4 GB of internal storage, near-field
communication support, a suite of Jio-branded apps (including the voice assistant HelloJio), and
a Jio-branded application store. It also supports a “TV cable” accessory for output to an external
display.
In July 2018, the company unveiled the JioPhone 2, an updated model in a keyboard bar form
factor with a QWERTY keyboard and horizontal display. Jio also announced that Facebook,
WhatsApp, and YouTube apps would become available for the two phones.
JionetWi-Fi
Prior to its pan-India launch of 4G data and telephony services, the firm has started providing
free Wi-Fi hotspot services in cities throughout India including Surat, Ahmedabad in Gujarat,
and Visakhapatnam in Andhra Pradesh,Indore, Jabalpur, Dewas and Ujjain in Madhya Pradesh,
select locations of Mumbai in Maharashtra,Kolkata in West Bengal, Lucknow in Uttar Pradesh,
Bhubaneswar in Odisha, Mussoorie in Uttarakhand, Collectorate’s Office in Meerut, and at MG
Road in Vijamatche among others.
In March 2016, Jio started providing free Wi-Fi internet to spectators at six cricket stadiums
hosting the 2016 ICC World Twenty20 matches. .
In May 2016, Jio launched a bundle of multimedia apps on Google Play as part of its upcoming
4G services. While the apps are available to download for everyone, a user will require a Jio SIM
card to use them. Additionally, most of the apps are in the beta phase.Notable apps include:
A Research Methodology defines the purpose of the research, how it proceeds, how to measure
progress and what constitute success with respect to the objectives determined for carrying out
the research study.
• Exploratory Research: This kind of research has the primary objective of development of
insights into the problem. It studies the main area where the problem lies and also tries to
evaluate some appropriate courses of action.
• The research methodology for the present study has been adopted to reflect these realties
and help reach the logical conclusion in an objective and scientific manner.
TYPES OF RESEARCH
1.Basic Research
Basic research is an investigation on basic principles and reasons for occurrence of a particular
event or process or phenomenon. It is also called theoretical research. Study or investigation of
some natural phenomenon or relating to pure science are termed as basic research. Basic
researches some times may not lead to immediate use or application. It is not concerned with
solving any practical problems of immediate interest. But it is original or basic in character. It
provides a systematic and deep insight into a problem and facilitates extraction of scientific and
logical explanation and conclusion on it. It helps build new frontiers of knowledge. The
outcomes of basic research form the basis for many applied research. Researchers working on
applied research have to make use of the outcomes of basic research and explore the utility of
them.
2. Applied Research
In an applied research one solves certain problems employing well known and accepted theories
and principles. Most of the experimental research, case studies and inter-disciplinary research are
essentially applied research. Applied research is helpful for basic research. A research, the
outcome of which has immediate application is also termed as applied research. Such a research
is of practical use to current activity. For example, research on social problems have immediate
use. Applied research is concerned with actual life research such as research on increasing
efficiency of a machine, increasing gain factor of production of a material, pollution control,
preparing vaccination for a disease, etc. Obviously, they have immediate potential applications.
Basic and applied researches are generally of two kinds: normal research and revolutionary
research. In any particular field, normal research is performed in accordance with a set of rules,
concepts and procedures called a paradigm, which is well accepted by the scientists working in
that field. Normal research is something like puzzle-solving: interesting, even beautiful, solutions
are found but the rules are remain same. In this normal research sometimes unexpected novel
results and discoveries are realized which are inconsistent with the 8 existing paradigm. Among
the scientist, a tense situation then ensues, which increases in intensity until a scientific
revolution is reached. This is marked by a paradigm shift and a new paradigm emerges under
which normal scientific activity can be resumed.
The basic and applied researches can be quantitative or qualitative or even both.
• It is conclusive.
• Its aim is to get the meaning, feeling and describe the situation.
• It is exploratory.
Other types of research include action research (fact findings to improve the quality of action in
the social world), explanatory research (searching explanations for events and phenomena, for
example finding answer to the question why are the things like what they are?), exploratory
research (getting more information on a topic) and comparative research (obtaining similarities
and differences between events, methods, techniques, etc.)
2.2 HYPOTHESIS :
There was time constraint for the study work given to me.
The area considered for the study was taken randomly, so the area taken for the study was
limited.
The responses of some consumers were not up to mark.
The sample size taken for the survey was limited.
Primary data : Primary data was collected by conducting survey in Mumbai and it’s
nearby area.
Secondary data : Secondary data was collected from published articles, research papers
and various internet sites.
CHAPTER 3 : REVIEW OF LITERATURE
Nwana (2002:15) in his fundamentals of small scale business management quoted that small
scale business Act of 2000, passed by Congress of United States fo America, which defined
small business as “one which independently owned and operated, not dominant in its field of
operation”.
Eeifedigbo (2014:9) in his introduction to business management defined sole proprietorship as
the oldest form of business organization and it is simple to organize.
The following terms are therefore emphasized in all the definitions:
1. Ownership
2. Financing
3. Policy control
They rest on one individual, the entrepreneur himself in other word, the sole proprietor is directly
responsible for ownership, financing, policy formation, management and to a very good extent,
personal involvement in actual operations of the business system and procedure and he does this
by trial and error which is most cases results in taking irrational decisions that impact negatively
on their business ventures.
Small scale business in Nigeria is dominated by sole proprietorship. Sole proprietorship operates
on the principle of the capital economy, competing among themselves and with other forms of
business organizations.
Adams Smith (2002:30) in his wealth of nation observed that “an economy is best regulated by
the invisible hand of competitor”. According to him competition among firms would ensure that
consumer gets the best possible produce and prices since the less efficient produce Therefore,
there is need for services planning before an entrepreneur start his business, lack of adequate
planning can easily lead to a complete collapse just like any other business.
Effectively planning presumes realistic forecast of profit in a relatively sufficient time period
considering the adequacy of investment input. In planning a sole proprietorship business
therefore, the entrepreneur must have a clear account recording, merchandizing, plans, business
location, potential customers, recruitment of the best but cheapest local workforce, material
mobilization, formulation, advertising and promotion, strategies, inventory valuation methods
and general method of operation. A comprehensive business plan is therefore ideal for a vision of
his proposed firm before operation starts.
Baum Back (2003:4) in his book, basic small business management, describes area of activities
of most sole business as follows:
1. Industrial concerns which includes: farming, mining, block industries/furniture,
engineering and construction.
2. Commercial concerns such as: Banking, insurance, retailing.
3. Service industries such as: Health services, educative, hair dressing, entertainment,
accounting and other professional services.
According to Ezeifedigbo (2004:9) sole proprietorship is characterized by the following. In this
type of business:
The proprietor provides all the capital required to carry on the business.
The proprietor provides the initiative, controls all the business and retains all the profits arising
from the business.
The owner takes all the risks and bears all the losses sustained in any bad year.
There is the need for cooperation between government and individuals even though government
may be the highest employee; the government cannot provide enough employment for all
citizens.
Sole proprietors through their activities contribute to national development; as a result, the
government will continue to support them so that they will continue their development activities.
Innovation is an important feature that brings about growth and development by bringing good
life to the people. Thus every government will support any venture that could lead to the
emergency of better ideas.
Various governments’ policies and programmes have been giving support and encouragement to
sole proprietors. These include the Nigeria Enterprises Promotion Decree, the establishment of
National Economic Reconstruction Fund (NERFUND), the National Directorate of Employment
(NDE) among others. It is hoped that such support and encouragement would continue in future,
this will result in a promising for sole owners.
With the policy of government to change the value system of Nigeria to prefer locally made
goods to foreign ones, a growth in the activities of the sole proprietorship are envisaged.
The increase in bank capitalization, the problems of securing capital for entrepreneurial activities
isin business organizations has already been emphasized. Though it has been narrowed of
challenges and prospects of sole proprietorship in business.
The main focus of this research is to know the challenges sole proprietors encounter, the prospect
and the role it play in an economy, which has been briefly stated above.
The sole proprietorship is the oldest and simplest form of business operated by one person whose
aim is to make profit. Most of present private business started as sole proprietorship due to easy
formation, many types spring up every day, and some grow just few weeks or months and
collapse due to number of factors. Some grow into conglomerate which at last taking over to
public corporations.
Precisely, despite various criticisms that have been elicited from different theorists and scholars,
Fayol models are still widely used. Established and well-performing businesses and
organizations have attributed their effective performance and success to the Fayol principles.
In his theory, Fayol outlined five basic functions inherent to management. The basic
management functions described by Fayol in his theory include planning, organizing, and
commanding.
Additionally, Fayol identifies coordinating and controlling as other basic management principles.
According to Fayol, outlined functions remain universal to all organizations.
He stipulated that all managers have to carry out these described functions in every day working
environment.
In addition to these, Fayol outlined other fourteen overall management principles.
Indicatively, the 14 principles provide normative guidance regarding the manner in which
manager may implement the basic five managerial roles in an effective manner (Sapru 2008, p.
33).
There is great importance in outlining these basic principles identified by Fayol regarding
managerial roles.
Particularly, this examination is important during this era of globalization, which has led to a
remarkable increase in organizational and business competitiveness.
Fayol describes the basic principles of management. Planning is one of the highlighted roles of
management. As Fayol outlines, managers have to conduct basic planning roles.
This is applicable for the future conditions. The development of strategic objectives is
objectively important for proper organizational performance. This is particularly in order for
organizations to secure the accomplishment for the future organizational objectives.
Therefore, as Fayol indicates, it is important for all the managers and other organizational leaders
to evaluate their potential for future achievements.
Future contingencies likely to influence organizations and consequently transform their
operational and strategic orientations are important. Consequently, these must be well planned
for.
Organizing is another critical management role as described by the Fayol’s theory (McLean
2011, p. 32). The organizational leaders have to organize its personnel in an effective way. The
streamlining of organizational activities and other work processes is important for effective
performance.
Generally, as evidently described by Fayol, a well planned and organized organization leads to
adequate and successful performance. Proper organization remains vital even during recruitment
processes. For effective performance, the managers have to recruit the right personnel for
specific duties.
Securing the highly skilled and learned human resource is a vital organization role that must be
conducted by the managers. Commanding is another critical management role proposed by the
Fayol’s theory.
Ideally, current organizations face stiff competition and high employee demand. In order to
remain within the competitive organizational and business mainstream, the outlined Fayol’s
theories remain largely applicable.
Effective supervision and motivation of workers is crucial within organizations (Wren &Bedeian
2009, p. 56). Evidently, most successful organizations have attributed motivation to their
innovation and novelty.
Effectively supervised and motivated workforces remains dedicated and compete constructively
to accomplish outlined goals and delegated duties.
Subordinates must be adequately supervised in their daily work processes. This should be
accompanied with their motivation to achieve the organizational goals. Motivation enhances
innovation as well as novelty.
Adequate communication and feedback mechanisms are vital within an organization. These
processes are basically oriented in the command system. They help in the articulation of
company goals and policies to all members. This also includes the subordinate staff.