This is the biggest disadvantage as it makes this type of business risky for the owner. If they do not succeed the sole trader is liable to pay off all the debts.

Sole traders may have to work long hourse to make their business a success. There are no other owners to share the workload with.

Banks and other lenders may not be keen to loan sole traders finance as there is a higher element of risk.

Unlike larger businesses the sole trader has to carry out multiple functions in the business, this may affect the quality of the work.

Sole traders are often run by one person, so if the owner is ill the business may have to close.