Industry is related to production of goods and services. commerce is related to distribution of products and trading is related to the transfer (exchange) of goods and services. There are several differences between them according to their meaning, capital, risk, operation etc.
Major differences between industry, commerce and trade are as follows:
Major differences between industry, commerce and trade are as follows:
1. Meaning
Industry: It involves manufacturing activities such as extraction, construction and production of goods.
Commerce: It involves distribution of products produced by industries,
Trade: It involves transfer or exchange of products distributed by commerce.
2. Capital Requirement
Industry: Requires huge amount of capital to establish industry.
Commerce: Requires less amount of capital than industry but larger amount than trade to operate its activities.
Trade: Requires less capital than industry and commerce.
3. Level Of Risk
Industry: Riskier than commerce and trade.
Commerce: Less riskier than industry but involves high risk than trade.
4. Side
Industry: Supply side of the product.
Industry: It creates form utility.
Industry: It is operated in workshop or factory.
4. Side
Industry: Supply side of the product.
Commerce: Demand side of the product.
Trade: Both side (demand and supply) of the product.
5. Creation Of Utility
Industry: It creates form utility.
Commerce: It creates time utility and place utility.
Trade: It creates processing utility
6. Place Of Operation
Industry: It is operated in workshop or factory.
Commerce: It is operated from production center to distribution center.
Trade: It is operated in the market
