A sole proprietorship is the simplest model of a business. A sole proprietorship is just a trade name, it is not a legal entity. Entrepreneurship is the process of designing, launching and running a new business.
A sole proprietorship is a type of enterprise in which there is only one owner (shareholder) who is also the only director. Proprietor means owner as you might have guessed. The sole proprietorship is the simplest business form under which one can operate a business.
It’s a fast, inexpensive, and unbureaucratic process. A single proprietorship is indistinguishable from the owner. Personal and business property and funds can get mixed.
This cannot happen in other forms of enterprises like partnerships, LLCs and companies/corporations. Taxation is very simple, it’s just based on the revenues earned by the owner.
Sadly, Sole proprietors are personally liable for all debts of a sole proprietorship business. They cannot raise capital by selling a stake. Sole proprietorships often don’t survive after the death or incapacity of their owners.
Entrepreneurship is the process of designing, launching and running a new business , which is initially a small business. The people who create these businesses are called entrepreneurs.
Entrepreneurship is often given a legal status.
They are incorporated and therefore made into legal entities. They can be partnerships, LLCs, or corporations (companies). They have multiple owners
(shareholders), limited liabilities, and follow complex management and taxation.
Shareholders are not personally liable for debts of an enterprise. More capital can be raised by selling stocks or appreciation of stocks. Enterprises often survive for a long time, even after the death of their original founders.