Advantages and disadvantages of monopoly business

Advantages and disadvantages of monopoly business:

Advantages and disadvantages of monopoly business

Advantages and disadvantages of monopoly business:


There are some advantages as well as disadvantages to a proprietary business. The advantages and disadvantages of monopoly business are discussed below:

Advantages of monopoly business:

1. Quick decision making

The owner of a sole proprietorship can make quick decisions about anything. He does not have to take anyone’s advice or permission to make any decision. As a result, he can take immediate action on any matter.

2. Personal supervision:

The owner is solely responsible for the success or failure of the one-ownership business. For this reason, he tried to carry out his duties with special care.

3. Confidentiality of business:

The privacy of the organization is not revealed in the sole proprietorship. As an owner of sole proprietorship business, no one else can know the secret information of the business. This makes it possible to protect the privacy of the business.

4. Waste is less:

Waste is less in a business owner. As the owner supervises the business himself, there is no possibility of wastage of labor, raw materials, and capital.

5. Customer tastes, and care:

Owners of sole proprietorships can easily come in contact with buyers and get acquainted with their tastes and comfort. As a result, products can be produced according to the tastes of the buyers.

6. Good relationship between owner and workers:

In a one-ownership business, friendly relations develop between the owner and the worker. The employer may personally approach the workers and consider their grievances sympathetically.

7. Advantages of formation:

One proprietary business can be easily formed. As there are no restrictions of law, any organizer can establish such a business if he wants.

8. Advantages of Accounting:

Since there is no legal obligation to keep an account in a proprietary business, the owner can keep accounts in any manner like a facility.

9 . Enthusiasm:

In a proprietary business, all the profits of the business are enjoyed by the owner. As a result, the owner has the motivation and sincerity needed to succeed in business.

Disadvantages of monopoly business:

1. Lack of capital:

Lack of capital is the main problem in monopoly businesses. In modern times, a business needs sufficient capital. But it is not possible for an owner to raise such capital.

2. Mass production impossible:

Large-scale production is not possible in one proprietary business. That huge amount of capital is required for mass production. It is not possible for an owner to collect it.

3. Excessive risk:

A proprietary business is very risky. Because all the risks of the organization have to be borne by an owner but it is very dangerous for one person to bear all the risks of a business.

4. Lack of skills:

It is very difficult for an owner in a proprietorship business to take care of everything in the business. Moreover, the Department of Labor cannot be introduced in business management.

5. Lack of skilled staff :

The amount of capital in a proprietary business is less, so the business cannot perform its duties almost properly due to a lack of skilled employees.

6. Short existence :

The existence of a sole proprietorship is short-lived due to the death of the owner or adverse conditions.

7. Lack of competitive attitude:

Since this business produces a small volume due to a lack of capital. So it is often impossible to compete with large-scale manufacturing companies.

6. Social Dignity:

The social status of this business is low. Because this kind of business has no legal recognition.


As can be seen from the above discussion, there are several limitations to a proprietary business. Since then it has been widely used in the present era for its special benefits.


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