Business Development v/s Economic Development

What is the difference in both?

Business Development talks about the development of a company’s progress and the growth opportunities that it should avail for its development and growth. Business development is done by meaningful activities by small or large organizations and helps in developing the business in one way or another.

Economic development on the other hand is also related to growth and an increased outcome but is more connected to the improvement in the social and political welfare of the people of a country as well. While business development is centered on a particular business, economic development talks about growth and the wellbeing of people as well.

There are other differences between the two as well which separate one from the other.

• The difference in the driving force

While business development is done to generate profits, economic development is done to create more jobs, taxes and promote the maximum amount of economic activity in a country or even in a region

• The difference in the focus area

Business development focuses on opportunities in the market and is located in areas where they can generate business and profits. They search and exploit various business opportunities as well. In economic development, the focus lies in a particular geographical area where continuous efforts are made to create economic activity. Aiming for profits is considered as a secondary goal in this.

• Difference in business

While in business development the aim is to gain massive amounts of profits by doing business and doing business in those particularly researched and defined areas where the business would eventually turn out to be successful. Economic development is done in a specific area by promoting business. It is done by promoting the geographically defined area and its characteristics.

• Difference in origin

There is a huge difference in their origin as well. Business development originates in the private sector and the economic development originates in the public sector. In business development, the people owning the business are individual owners present in the private sector of the country.

However, economic development is different because the beneficiaries benefiting are the people who are living in that particular area so the development starts from the public or government organizations of that same area.

• Difference in authorities

In business development, the businesses and the business owners have to report directly to the investors who are spending money in the business while in economic development the community is the one who demands answers. So the public in this regard holds importance as well.