The main difference between Industry and Commerce is that the Industry is circularly or all over the manufacture of products and Commerce emphases on its delivery of products and services.
Industry vs. Commerce
The industry is concerned with raising producing processing or fabrication of goods and services, whereas Commerce comprises of all those activities which are concerned with the distribution of goods and services so they may reach the consumers with a minimum of inconvenience. The origin and development of the industry is a result of international economic competition; on the other hand, the origin and development of commerce are the results of the continuous development of trade and industries.
Industry includes ‘Trade’ and ‘Aids to Trade,’ and commerce includes ‘Trade’ and ‘Aids to Trade.’ A large sum of capital is required for the establishment of an industry on the other side in commerce; the amount of capital required is comparatively less. The higher risk is there in the industry, whereas the risk is comparatively less in commerce.
What is Industry?
The industry is a subdivision of a business or trade. The industry is apprehensive about the manufacture of products and the manufacture of products. All of the doings which make the products or transform the raw or starting material into end products or mean products comprised in the industry. To make farming products and mining is also comprised in the industry.
Either way, the word industry relays to that censure of business or economy activity, which focused on the abstraction, manufacture, or making of products. The word ‘industry’ is utilized to specify those doings or activities which contain the usage of motorized devices or appliances and mechanical skills or services, i.e., doings with the production, manufacturing, and processing of products. It advocates the level of supply of the marketplace.
Activities Covered Under Industry
- Descent of materials such as coal, petroleum, etc.
- Change of raw provisions into suitable products such as soaps, cement, fans, etc.
- Manufacture or construction of dams, buildings, road and rail networks, etc.
- Primary Industry: It may refer to agriculture and forestry.
- Extraction Industry: It includes mining and fishing.
- Manufacturing Industry: It includes the changing of raw material into a more useful form.
- Constructive Industry: The construction of buildings, dams, and roads includes in this industry.
What is Commerce?
Commerce includes all those activities which help transfer goods from the place of production to the consumer. As an example, purchase, sale, transportation’s, banking, insurance, storage, and advertisement are the activities which come within the scope of commerce. Manufactured goods do not reach directly from the producer to the consumer. e.g., wholesaler purchases the goods from the producer and uses the transportation to shift these to his store. He also hires the services of banks and insurance companies. Then he sells the goods to the retailer.
A consumer purchases the goods from the retailer. So there are many obstructions in the way of producer and consumer. All the monetary deeds or activities which are in a certain form or the other related to interchange come under business or commerce. It covers the distribution aspect of the business, i.e., it facilitates the consumption process by providing a proper distribution channel. Hence, it guarantees the accessibility of products and facilities or services to the consumers in time and space or place.
- Trade: The way of purchasing and vending or selling of products and services for cash.
- Auxiliaries to Trade: All the actions which support trade in a straight line or indirectly are aids or auxiliaries to trade. It contains warehousing or storage, transportation, banking & finance, marketing, insurance, and other things.
- The industry defined as an economic or fiscal activity apprehensive with obtaining and giving out of raw constituents into ended products or goods that influence the consumer. Whereas commerce defined as a commercial activity or doings in which conversation for products and services for remuneration or value completed on a mass scale.
- The industry comprises the exchange of means into worthwhile products, conversely commerce which comprises activities that are necessary for facilitating or assisting the purchasing and sales of products.
- The industry consists of great risk or danger compared with commerce.
- Enormous capital investment is needed to start an industry. On the other end, commerce needs relatively a smaller amount of investment outlays or capital costs.
- The industry is a sign or indicator of the making part of commercial deeds. Contrary to commerce, which looks after the making goods available to the customers,i.e., the distribution part.
Industry and Commerce cover all the features of the business. Industry deals with obtaining, manufacture, extraction, fabrication, construction, or production accomplishments of the trade. While commerce deals with the undertaking of goods from the basis or source place with supply channels to the concluding consumer.