Answer:
Mostly because of the scope and influence of big corporations. Although it is easy to start a proprietorship, it is known that revenue will always be limited for that kind of enterprise.
A proprietorship is synonymous with a single person running the company. Usually, small grocery shops, studios, mom-and-pop stores are examples of proprietorship. They will never account for revenue that is even similar to that of a well-known corporation.
Why? Corporations have an advantage over numerous factors:
- bigger budget for investments and various improvements
- omnipresence - Usually, corporations have branches all over the world, reaching out to more customers.
- brand image - This is due to the previous factor. Customers may find corporations and chains more trustworthy, as their grasp of business and operations is huge.
