Difference between Business, Profession, and Employment

Economic activities are divided into three major categories, namely business, professions and employment.

Business

Business refers to those economic activities, which are connected with the production or purchase & sale of goods or supply of services with the main object of earning a profit. To earn income in the form of profit people engage themselves in business. Examples: fishing, mining, farming, manufacturing, wholesales etc.

Professions

Professions includes those activities, which require special knowledge & skill to be applied by individuals in their occupation. Those engaged in professions are known as professionals. Professionals are generally subjected to guidelines or codes of conduct laid down by professional bodies.

Examples: lawyers are engaged in the legal profession, governed by the bar council of India & chartered accountants belonging to the accounting profession are subject to the regulations of the Institute of chartered accountants of India.

Employment

Getting remunerated in return for the work done for others refers to an employee. Employees are the people who are employed by others. Thus, people who work in factories, offices of banks, insurance companies or government department, etc at various posts are the employees of these organizations. They receive wages & salaries. Examples: working in offices, banks, insurance companies, shops, as a manager, clerk, peon, salesman etc.

Difference between Business, Profession, and Employment

Basis	Business	Profession	Employment
Commencement	Business may commence with the decision of entrepreneur.	The profession may commence on completion of a degree course & by getting a certificate of practice.	Employment commences on joining duty by entering into a service agreement.
Qualification	No minimum qualification required before starting a business.	Prescribed & professional qualification & training required.	Qualification depends on the nature of the job.
Investment	Capital requirement depends on the scale of business.	Limited capital investment is required.	No capital investment is required.
Risk	In business, there is always risk & uncertainty.	In the profession, there is little risk present.	In employment, there is no risk involved.
Transfer of interest	Transfer of interest is possible with some formalities.	Transfer of interest is not possible.	Not possible to transfer the service contract.
Main objective	The main objective of business is to earn a profit.	The main objective of a profession is to provide service.	The main objective of employment is to earn income in the form of salary by satisfying the employer.
Code of conduct	There is no prescribed code of conduct for business.	Code of conduct is prescribed by the professional associations.	The terms & conditions of service contract are applicable to an employee.
Nature of work involved	It involves production, purchase & sale or exchange of goods & services.	It involves the rendering of personalized services of specialized nature.	It involves performing the work as assigned by the employer.

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