\tOne of the biggest limitations of a sole proprietorship is the\xa0unlimited personal liability of the owner. If the business fails it can wipe out the personal wealth of the owner as well as affect his future business prospects too\tAnother problem is that\xa0a sole proprietor has access to\xa0limited capital. The money he can borrow from his own personal savings may not be enough to expand the business. Moreover,\xa0banks and financial institutions\xa0are also wary of lending to proprietorships.\tThe life cycle of a sole proprietorship is undecided and attached to its owner. An incapacitated owner may have a negative effect on the business, and it may even lead to the closure of the business. A sole proprietorship cannot carry on without its proprietor.\tA sole proprietor also has\xa0limited managerial ability. He cannot be an expert in all the fields of the\xa0business. Furthermore, limited resources may mean that he cannot hire competent people to help him out. As a result, the business may suffer from mismanagement and poor decisions.