Here is a revised version of the assignment without subtitles, with deeper explanations for each point
and three references in APA style:
---
A sole trader, also known as a sole proprietorship, is the most common form of business ownership
among startup entrepreneurs in Zambia. This is because it is simple to set up, inexpensive to operate,
and gives the owner full control over business operations. For many Zambians who are just starting out
in business, these benefits make the sole trader model the most attractive option.
Starting a sole trader business in Zambia is easy and requires fewer legal procedures compared to other
business forms such as limited companies or partnerships. The registration process with the Patents and
Companies Registration Agency (PACRA) is straightforward and affordable, which is important for
individuals who may not have much capital to invest in a formal and complex business structure. Many
small business owners may only need to register a business name and obtain a tax registration number
from the Zambia Revenue Authority (ZRA), which are both quick processes (PACRA, 2023). Because of
this, even those in rural or peri-urban areas with limited access to legal services can still manage to start
a small business as sole traders.
Another reason why many startup entrepreneurs choose this form of ownership is the full control it
gives them. The owner makes all the decisions about the business, including what products or services
to offer, how to price them, and how to run daily operations. This kind of freedom is very appealing to
new entrepreneurs who want to implement their own ideas without needing approval from business
partners or shareholders. It also allows for quick decision-making, which is often necessary in small
businesses that must adapt quickly to changes in the market or customer preferences.
In addition, sole traders enjoy the benefit of keeping all the profits made by the business. Since the
owner and the business are considered one legal entity, there is no separation of earnings, which means
all income goes directly to the owner. This is especially attractive in a country like Zambia, where many
people start businesses to support their families and improve their living standards. For those who are
working hard to grow their income, having full access to profits is a strong incentive.
Furthermore, sole traders in Zambia benefit from a simpler taxation system. Many fall under the
presumptive tax system, which allows them to pay a fixed amount of tax depending on the type and size
of their business, instead of calculating tax based on complex income assessments (ZRA, 2023). This
system reduces the burden of accounting and allows entrepreneurs to focus more on growing their
businesses than on managing taxes. For many startups that cannot afford professional accountants, this
is a major advantage.
Lastly, the sole trader model is ideal for small-scale businesses, which are the most common type of
startups in Zambia. Most entrepreneurs start with small capital, few or no employees, and limited
business experience. The sole proprietorship structure matches this reality by allowing the entrepreneur
to start small and grow at their own pace, without being overwhelmed by legal or administrative
burdens. As the business grows, the owner can later decide to change the business structure if needed.
In conclusion, the sole trader form of business ownership remains the most popular among Zambian
startup entrepreneurs because of its simplicity, affordability, full control for the owner, and suitability
for small-scale operations. These factors make it accessible and practical for many individuals looking to
start their own businesses with limited resources.
---
References
PACRA. (2023). Business Name Registration. Patents and Companies Registration Agency. Retrieved
from https://www.pacra.org.zm
Zambia Revenue Authority (ZRA). (2023). Presumptive Tax System. Retrieved from
https://www.zra.org.zm
Mwansa, T. (2022). Small Business Development in Zambia: Opportunities and Challenges. University of
Zambia Press.
---
Let me know if you'd like this saved as a document file.
