Commerce vs Business
The difference between commerce and business can be puzzling to some as the words commerce and business have a similar connotation. Also, there is a tendency of people to talk about these terms in the same breath as if both were the same. That is because both commerce and business are connected to trade. Trading involves buying and selling of items. Both commerce and business are based on this buying and selling process, but they have more to offer when we look at the two terms in different angles. That is what make these two terms different from each other. Therefore, these differences between commerce and trade will be the subject of this article.
What is Commerce?
Commerce is an abstract idea that refers to activities of buying and selling of goods and services. As commerce is an abstract idea, you cannot say that you own commerce. That is wrong. When it comes to the clients of a company, the company does business with the clients, not commerce though the activities of the company come within the purview of the broader term commerce. Commerce is much closer in meaning to trade and trade-related activities such as communication, transportation, insurance, and so on. Commerce is thus a part of all the activities that are carried out in the name of business such as planning, advertising, buying, selling, marketing, accounting and supervising manufacturing, etc. Commerce is just the buying and selling part of business thus being smaller in scope than business.
What is Business?
Business is more physical in the sense that it can be owned by a person. A person can own a business, but he certainly does not own commerce. Similarly, a company does business with its clients. On the other hand, business is an activity that is undertaken with the sole motive of making profits. If one tries to represent trade, commerce, and business through Venn diagrams, trade and commerce appear to be subsets of business, which is the largest circle containing both trade and commerce. This shows that business is more than just buying and selling. There are many more aspects connected with business such as management, administration, etc.
What is the difference between Business and Commerce?
• Commerce and business are words with similar meaning, but they also differ from one another.
• While business can be an entity, commerce refers to trade and trade-related activities.
• Commerce focuses on buying and selling part of a business whereas there is much more to a business than just buying and selling.
• The difference between these two terms is also reflected in the relative importance of the courses of commerce and business. Whereas a student studying commerce is just a simple management graduate, a student studying business holds a professional degree that opens doors of many more opportunities.
• When it comes to Bachelor of Commerce degree, the study is focused on the wider commercial and economical environment. Then, the Bachelor of Business focuses on the way individual businesses and organizations operate. As you can see, to run a business, having a business degree is more suitable.
• A business holds many activities such as planning, advertising, selling, buying, marketing, accounting and supervising manufacturing, etc. Commerce, which mainly focuses on buying and selling, is a part of each and every one of these activities that make a business. As a result, commerce comes under business.
• When it comes to business, there are several types of businesses based on the structure. They are sole trader, partnership, trust, and company. One cannot say that such variations exist when it comes to commerce.