Which type of private sector business is typically small and owned by one person?

A sole trader is a type of private sector business that is typically small and owned solely by one person. This structure is often chosen by individuals who want to start their own businesses without forming a complex legal entity. The sole trader has full control over the business's operations and decisions, and they also retain all profits generated, while also being personally responsible for any debts and obligations incurred by the business.

This business model is popular among freelancers, consultants, and small service providers. The simplicity of establishing a sole trader business makes it an accessible option for many entrepreneurs, allowing them to start quickly and with minimal regulatory burden. In addition, sole traders benefit from a straightforward tax assessment process, which can further encourage entrepreneurial activity at a smaller scale.