Weak R&D can slow Sole proprietor’s growth as competitors out-innovate Sole proprietor… … "Weak R&D (Sole proprietor)" will have a long-term negative impact on this entity, which subtracts from the entity's value. This qualitative factor will lead to an increase in costs. This statement will lead to a decrease in profits. "Weak R&D (Sole proprietor)" is a difficult qualitative factor to overcome, so the investment will have to spend a lot of time trying to overcome this issue.