What Are the Advantages of Sole Proprietorship?

It refers to the investment method by the investor in the host country through the establishment or merger of a self-operating, risk-taking and self-financing enterprise. This form of foreign investment has developed rapidly in China in recent years, and has become the largest project form.

Sole proprietorship

The advantages of the sole proprietorship are to ensure that the domestic parent company has absolute control and operational decision-making power, which can ensure the implementation of the company's overall strategic goals; it can also avoid inconsistencies in joint ventures such as the two parties' management methods and market goals, and shape future market competition Opponents of the opponent.

I. Susceptible to host country political, economic, cultural and other uncertain factors leading to greater operational risks;

2. The investment amount is high, the cycle is long, the cost efficiency is poor, and the spot profit is small;

Third, it is difficult to grasp the local humanities and customs and establish a set of operating organization and management system in line with local conditions.