Can sole traders survive?
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INTRODUCTION: 3 Types of ownership: 3 Sole Trader 3 Private Limited Company (PLC) 3 Partnership: 3 Prediction: 3 THE RESULTS: 5 ANALYSIS: 6 CONCLUSION: 7 Introduction: I am conducting a survey to decide whether or not a sole trader can survive in today's high streets. Types of ownership: Sole Trader This is a person who starts up their own business with their own money. This is good as you are in charge of all aspects of the business, but you are also liable for all the debt. A sole trader will not have the money to rent the shop as it is just starting up and will not have the capital for it. As a sole trader is liable to all of the debt it is more cautious to buy an expensive premises, as it may loose the business and have to sell their house to pay for it. Private Limited Company (PLC) This is good as you are not liable for any debt that the company gets but you are not in charge of the business.
I do not think that this will occur, I think that there will be a lot of PLC's and not many Sole Traders or Partnerships. The results: Shop PLC Partnership Sole Trader Sainsbury's ? Wilkinsons ? What everyone Wants ? JD Sports ? M&S ? McDonalds ? Phones 4 U ? Game ? Argos ? Blue Inc ? Zero Zero ? QS ? Woolworths ? Lunn Polly ? Iceland ? Burger King ? Specsavers ? Robert Dyas ? Bells Fish and Chips ? Boot Opticians ? Analysis: My results show that the most popular shop was a plc. This is because they have the money and resources to rent or buy the shops. There were only two sole traders. This could be due to the fact that they do not have the money to rent or buy the shop. As sole traders only have a small amount of capital they will not be able to afford a shop in Bexleyheath, which is a prime location. PLC's on the other hand have a lot of money so they will be able to afford the rent or even maybe the money to purchase the shop outright.
I think that sole traders will be able to survive in a less populated area that bigger businesses would not be as interested in setting up in. a sole trader will have more success in this area as there will be less competition. Franchising may help a small business become more successful as they already have the name that is known and respected so they will have the customers already. The main company will help to set up the business, so this will help them to get the correct atmosphere and fell to the shop. This way you will still get the same feel of owning your own business, without all of the hasslw of setting it up. I didn't really have that many problems but it was hard to decide on which kind of shop it was. This is because not all PLC's have PLC in their name so it is not as easy to find out. I either had the option of going in and asking the people who work in the shop or I could take a well educated guess at which type of business it is. 1
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