In general, Business is an activity of making money that involves goods and services. Business can be Industry, commerce, and trade. These are related to business and are part of the business.
In this article, we will know about the major difference between them.
What is the Industry?
The industry provides goods and services. No commercial activity is possible in the absence of industry and production.
What is Commerce?
Commerce facilitates the distribution of goods and services from producers to consumers. It helps industry before and after production through the purchase of materials and sale of finished products and also helps the industry by removing various hindrances that exist in the exchange of goods.
One cannot function without the support of the other. Thus industry and commerce are compared to the two sides of the same coin.
What is Trade?
Trade is a channel for the transfer of goods from producer to consumer. The superstructure of commerce is built upon the foundation of trade. The development of trade has helped the industry in creating the demand for production.
Difference Between Industry, Commerce, and Trade:
|The industry is concerned with the production of goods and services.||Commerce is the process of the distribution of goods and services.||Trade means the transfer of ownership of goods and services.|
|The Industry creates form utility.||Commerce creates a place and time utility.||Trade creates possession utility.|
|It includes all the activities needed to produce the final product.||It includes aids to trade.||It includes home trade and foreign trade.|
|4. Requirement of capital|
|a large amount of capital||Lesser capital as compared to industry.||Less capital depends on the nature of the business.|
|more risk is involved||Less risk as compared to the industry.||Least risk|
|6. Ownership and control|
|by industrialists||By merchants||By traders|
|7. Place of workforce|
|Place of work for industry takes place in Firms, factories, mines, workshops.||There is no particular place as distribution takes place in the form of means of transport. (From one place to another)||Trade takes place in the market|
As a result of the preceding discussion, It is clear that all three are important aspects of any concern. The Industry provides goods and services and its distribution is done by commerce then trade acts as the transfer of goods and services. Therefore, industry, commerce, and trade are interdependent.