Industrial and commercial are the two different forms of doing business. They include various companies like building, selling and manufacturing different products, movies and music industry, etc.
However, these two forms have a lot of differences among them, from the types of business that come under them to the kind of customers they attract.
Key Takeaways
- Industrial and commercial both refer to economic activities that involve producing, selling, or exchanging goods and services.
- Industrial activities involve manufacturing, processing, or refining raw materials into finished products, while commercial activities involve buying and selling goods or services for profit.
- Industrial businesses have large-scale production facilities and require heavy machinery, while commercial businesses focus on marketing and distributing products and services.
Industrial vs Commercial
Industrial activities are related to producing and manufacturing goods, requiring large-scale infrastructure, such as factories and machinery, to produce goods. Commercial activities involve the buying and selling goods and services, relying on marketing and sales to generate revenue.
Industrial business deals with goods manufacturing; it does not interfere in businesses such as transportation, finance, etc. The industrial land refers to an area which contains a lot of factories.
These buildings are not made aesthetically attractive because they do not tend to attract their customers that way. Industrial areas are located far outside the cities since these buildings require a significant empty piece of land.
Businesses focusing solely on gaining profit comes under the commercial form of business. These businesses tend to serve their customers.
They construct their building to be attractive to attract more customers. The location where a commercial businessโs facilities are located should fulfil some particular requirements like adequate parking space, a famous neighbourhood, etc.
Comparison Table
| Parameters of comparison | Industrial | Commercial |
|---|---|---|
| Definition | It focuses on the manufacturing of goods | It includes the businesses whose purpose is solely to gain profits |
| Buildings | It has normal buildings that are not aesthetically attractive. | It has aesthetically attractive buildings so that it can attract more customers. |
| Land | Requires a big piece of land. | Requires a small piece of land. |
| Customers | It does not focus on attracting customers. | Attractive customers are the most important part of this type of business. |
| Examples | Factories that manufacture various types of goods. | Malls, restaurants, stores, etc. |
What is Industrial?
Industrial is one of the forms of business. The industrial business focuses on the manufacturing of goods.
They do not interfere in other specific businesses like transportation, financial businesses, etc.; the industrial area refers to a place that is filled with various types of factories.
These areas are generally located far outside the cities since they require a large piece of land to construct all these factories.
These businesses do not tend to attract customers through their building, as they are business that works in the background; they pass on their stuff further to the people who can sell it. So they do not make their buildings to be attractive.
Industrial businesses generally require some necessary facilities like shipping, transportation, medical facilities etc., since they have to transport the materials all the time. Many people work at such places for a significant amount of time, so they should be cared for properly.
It is a big industry, and most of the other businesses depend on this industry.
What is Commercial?
The commercial form of business includes businesses whose purpose is solely to gain profits. These businesses tend to attract customers for more and more profit.
And for this purpose, they make their buildings aesthetically attractive, making people visit them more. They also pay proper attention to maintaining their buildings and provide various facilities to their customers.
The buildings of such businesses are generally located in the famous parts of the city. Choosing this location includes a lot of factors that can help to boost their business.
These factors include the right and big parking spot, a friendly and famous neighbourhood, a prominent part of the city, etc.
Commercial businesses do not require facilities such as transportation or shipping. However, like other businesses, they also need necessary facilities like a medical facility, etc. These businesses might depend on industrial businesses for their raw materials and products.
It generally focuses on serving its customers. Examples of such businesses include malls, restaurants, small stores, etc.
Main Differences Between Industrial and Commercial
- Industrial is the business that only focuses on manufacturing goods and does not interfere with other companies like transportation, finance etc. In contrast, the commercial form of the businessโs main motive is to earn profits. They tend to serve their customers.
- Industrial business does not tend to make their buildings attractive, whereas an attractive building is essential to a commercial business.
- The industrial land is the place where various factories are located. So an industrial business is always located far outside the city. Conversely, a commercial business is always located in the townโs most famous and crowded part.
- An industrial business requires a vast empty land, whereas a commercial business requires a small area.
- Industrial businesses include various factories that make a lot of different stuff. In contrast, a commercial business has malls, restaurants, etc.
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Chara Yadav holds MBA in Finance. Her goal is to simplify finance-related topics. She has worked in finance for about 25 years. She has held multiple finance and banking classes for business schools and communities. Read more at her bio page.
