What is a disadvantage of a sole proprietorship?

What is a disadvantage of a sole proprietorship?

Step 1: Understand what a sole proprietorship is. It is a business owned and run by one person.
Step 2: Recognize that sole proprietors use their own money to fund the business.
Step 3: Compare this to other business types, like partnerships or corporations, which can get money from multiple investors.
Step 4: Realize that having only one owner means there are fewer sources of money available.
Step 5: Conclude that this limited access to funds can make it harder for sole proprietorships to grow or cover expenses.

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