Most people think business and profession are similar to each other. But actually, there is a huge difference between business and profession as both of them are human activities based.
Primarily, human activities are classified into two categories that are economic activities and non-economic activities. Economic activities are those activities conducted to earn money or livelihood. And economic activities are further subdivided into business, profession, and employment.
In a business, any activity related to buying and selling of goods, no minimum qualification is required to start business. Whereas, the profession is a paid occupation that requires a person to be expert, trained, and formally qualified in a particular field to be known as a professional.
But it’s not enough to know the difference between business and profession. Read the full article to know more about their differences.
Difference Between Business And Profession
Definition Of Business
Business is a term derived from the word ‘busy’, which refers to being busy. In other words, business is the regular work of a person in which they engaged in an activity to earn money and profit as well.
The business represents the company for the production, purchase, sale, and supply of services to meet the needs of customers. It can be any for-profit company which can be a publicly owned or privately owned or a non-profit company.
There are mainly five forms of business organization which are Sole Proprietorship, Partnership, Co-operative Societies, Joint Hindu Family Business and Joint Stock Company.
There are some main characteristics of the business, they are:
- An economic activity
- Production or purchase and sale of goods and services regularly.
- The main purpose is to earn profit
- Uncertainty of return
- Presence of elements of risk
Definition Of Profession
A profession is defined as a paid occupation in which a person is formally qualified and undergoes training for a long period. Any activity which requires skill and knowledge gained from formal education and practical experience and which is applied by the individual in his/her respective profession, such activities are referred to as a profession. Examples of these include doctors, lawyers, chartered accountants, engineers, architects, etc.
A person must be a registered member of the profession to be called a professional. There are some rules in every profession called Professional code of ethics which govern them. Every profession aims are to provide service to every person who needs it, for a direct and definite compensation called a fee.
Difference Between Business And Profession By Comparision Chart
A Comparision Chart has given below for easy and clear understanding:
|BASIS FOR COMPARISON||BUSINESS||PROFESSION|
|Meaning||Business is an economic activity that deals with the production or buying and selling of goods and rendering of services to earn profit.||A profession is a form of economic activity that requires a person to apply special skills, knowledge, and expertise in his business.|
|Basic objective||Earning profit||Rendering services|
|Establishment||On the decision of entrepreneur and completion of legal formalities.||Certificate of membership and practice of the concerned professional body.|
|Qualification||No need for a minimum qualification.||Requirement of Specialized knowledge of study is needed.|
|Capital||As per the size and nature of business is required.||Limited capital is required.|
|Code of conduct||No prescribed code of conduct.||The code of conduct laid down by the professional bodies should be followed.|
|Advertisement||Products and services are advertised to increase sales.||Advertisement is prohibited as per the professional code of conduct.|
|Transfer of interest||Possible||Not possible|
|Risk factor||Present always||Not always present|
Above you must have been clear by now that both profession and business are very different from each other. Where the job of business is mainly to make a profit and earn money, the basic purpose of a profession is to serve. Along with this a huge amount of capital investment is also required to set up a business, on the other hand, real capital is the ability and expertise in the profession. Thank you!