Difference between Business and

Profession
Human activities are primarily classified into two categories, i.e. economic
activities, and non-economic activities. Economic Activities are the activities
conducted with an aim of earning money or livelihood. Further, these
activities are sub-divided into business, profession and employment. There
is a huge difference between business and profession in the sense that
there is no minimum qualification required for starting a business. It means
an activity that is related to buying and selling of goods.

On the other hand, a profession is nothing but a paid occupation that

requires a person to be formally qualified, expert and trained in a particular
field to be called as a professional. Take a read at this article to know more
on the two topics.

Content: Business Vs Profession

1. Comparison Chart
2. Definition
3. Key Differences
4. Conclusion
Comparison Chart

BASIS FOR
BUSINESS PROFESSION
COMPARISON

Business is an economic activity Profession is a form of economic

concerned with the production or activities, wherein special skills,
Meaning purchase and sale of merchandise and knowledge and expertise is required to
rendering of services with the purpose be applied by the person, in his
of earning profit. occupation.

Basic objective Earning profit Rendering services

Membership of the respective

On the decision of entrepreneur and
Establishment professional body and certificate of
fulfillment of legal formalities.
practice.

Specialized knowledge of study is

Qualification No minimum qualification.
required.

Required as per the size and nature of

Capital Limited capital is required.
business.

Reward Profit Professional fee

Code of conduct prescribed by the

Code of conduct No prescribed code of conduct. professional bodies needs to be
followed.

Products and services are advertised to Advertisement is prohibited as per

Advertisement
increase sales. professional code of conduct.

Transfer of interest Possible Not possible

Risk factor Always present Not always present

Definition of Business

‘Business,’ a term which has its origin from the word ‘busy,’ that refers to
the act of being busy. In simple terms, business is the regular occupation of
a person in which they engage in an activity to earn the profit and acquire
wealth.

The business represents an entity involved in production or purchase and

sale of merchandise and supply of services, for the purpose of satisfying
the needs of customers. It can be a for-profit entity, like publicly owned or
privately owned company or not-for-profit entity. There are mainly five
forms of business organization which are Sole Proprietorship, Partnership,
Cooperative Societies, Joint Hindu family business, and Joint Stock
Company. The main characteristics of business are:

 An economic activity
 Production or purchase and sale of goods and services on a regular
basis.
 The main purpose is to earn profit
 Uncertainty of return
 Presence of element of risk

Definition of Profession

The profession is defined as a paid occupation in which a person is

formally qualified and has undergone prolonged training, render services to
general public. It refers to any activity that requires expertise in specialized
knowledge and skills acquired by way of formal learning and practical
experience, to be applied by the individual in their respective occupation.
Some common examples of the profession are Doctors, Lawyers,
Chartered Accountants, Engineers, Architects, etc.

To be called as a professional, a person should be a registered member of

a profession. In every profession, there are certain rules called as the
professional code of ethics; that governs it. The purpose of a profession is
to provide services to those who need it, for a direct and certain
compensation called fee.
Key Differences between Business and Profession
The following points are noteworthy so far as the difference between
business and profession is concerned:

1. An economic activity concerned with the production or purchase and

sale merchandise and rendering of services with the purpose of
earning profit is called business. A form of economic activities,
wherein special skills, knowledge, and expertise is required to be
applied by the person, in his occupation is known as the profession.
2. The primary objective of a business is to earn profit whereas
profession is aimed at providing services.
3. A business can be established by the decision of the entrepreneur
and after fulfilling certain legal formalities. On the other hand,
profession requires membership of the respective professional body
and certificate of practice, for the establishment.
4. Any person can start his business; there is no minimum qualification
to run a venture. On the contrary, specialized knowledge of study,
training and expertise is the major requirement for the profession.
5. A business requires capital investment according to its size and
nature. Unlike, profession whose capital requirement is limited.
6. A businessman gets profit as a return for the work done by him/her.
Conversely, a professional gets a fee for the services rendered by
him/her.
7. In business, there is no prescribed code of conduct. As opposed to
the profession, the code of conduct is prescribed by the professional
bodies which must be followed.
8. In general, every business advertises its products and services, for
the purpose of increasing sales. As against this, the advertisement is
strictly prohibited as per professional code of conduct.
9. In business, transfer of interest is common, like transfer of business
by the father to his son. In contrast to the profession, where
transferability is not possible as it requires specialised skill and
knowledge.
10. Business and risk go hand in hand, so the risk factor is always
present in business. On the other end, the risk factor may or may not
be present in a profession.
Conclusion

After a broad discussion on these two topics, it is quite clear that these two
are not same at all. Business is primarily set up to make a profit and
acquire wealth, while service is the basic motive of a profession. Further,
business requires huge capital investment, at its initial stage. Conversely,
the actual capital is the competency and specialization in the profession.