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Difference between business and company

“Where there is a successful company, someone once made a brave decision.” Peter Drucker. Some think that

“Where there is a successful company, someone once made a brave decision.” Peter Drucker.

Some think that a business is the same as a microenterprise or a small business, but it is not. Just today we have been a practical case in this regard, therefore, we take advantage and explain, as we have made to our client, the differences between the two:

– Business comes from the word in Latin negotium, is formed by otium that means rest and nec that means denial, therefore business is the denial of leisure, or rather, an activity that an activity that keeps you busy.

– Company comes from the printed Italian that has to do with the action of printing something to make it come true.

What is the difference between business and business?

Considering production, in a business everything you can produce depends on yourself and for that reason your business can grow but not beyond a certain point. On the contrary, with a company you create an independent entity that can work without you occupying yourself directly from production because you can delegate tasks while you direct and plan. For this reason it is essential that you have a business plan that allows the successful transit of a business to a company.

If your commercial operations grow and formalize following the steps of an action plan, you will no longer have a business but a company. A business is an activity, system, method or way of obtaining money in exchange for offering benefits to others. If with that business you get a certain amount of profits, with stability, organization and formality then you will have a company.

for example …

The best way to understand the difference between these concepts is that of a business that consists of buying a place and then making money when renting it or selling it at a higher price, and a company that is dedicated to buying different stores for then rent them or sell them at a higher price.

In the first case, the business of buying a place and then renting or selling it is a method or way of earning money in exchange for offering a benefit to other people; While the company dedicated to buying premises and then renting it or selling them, it is an entity constituted to carry out this type of business. Of real estate in particular.

Thus, we will not be right if we think that a business is a small company, when at the time it is constituted, it is already. Following the case: the business is a method, while the company consists is an entity that performs these methods.

In the event that you have several businesses between hands, you can constitute one or more companies to be able to give your methods, have to know that within Verum we have a block for entrepreneurs. Contact us at

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