| Traditional business | E-business |
| 1. Meaning | Business which is managed and carried out in accordance with specific custom or a trading practice for long time is called traditional busines | Business which is managed and carried out by using information technology i.e. the internet is called ebusiness. |
| 2. Formation | Traditional business is comparatively difficult to form as it requires lengthy and complicated procedure to start. | E-business is comparatively easy to form. |
| 3. Setting up cost | To start, establish and manage traditional business large amount of capital is required | To start, establish and manage e-business very less amount of capital is required. |
| 4. Risk involved | In traditional business, less risk is involved as interaction between parties is possible due to personal contact. | In e-business, high risk is involved as there is no direct contract between the parties. |
| 5. Scope of business | Traditional business is limited to specific area so its scope is limited | E-business covers the entire world so its scope is vast and unlimited. |
| 6. Physical inspection and delivery of goods | In traditional business, goods can be inspected physically before they are purchased and their delivery is instant. | In e-business, goods cannot be inspected physically before they are purchased and their delivery takes time. |
