Why sole propitorship are able to offer fringe benefits to workers?

Sole proprietorships can offer fringe benefits to workers as a means to attract and retain talent, despite their typically smaller scale compared to larger businesses. By providing benefits like health insurance, retirement plans, or flexible work arrangements, they can create a competitive edge in the labor market. Additionally, these benefits can enhance employee satisfaction and productivity, ultimately benefiting the business. However, the extent of benefits offered may depend on the financial capacity of the sole proprietor.