The terms “organisation,” “business,” and “company” are often used interchangeably, but they can have slightly different connotations depending on the context. Here’s how they generally differ:

Organisation:
An organisation refers to any structured group of people with a common purpose or goal. This can include businesses, non-profit entities, government agencies, educational institutions, and more. Organisations can vary widely in size, scope, and nature. They can be formal or informal, and they often have established structures, hierarchies, and processes to achieve their objectives.

In the words of Ibu Hanim “Organisation is actually the house. To house activities within its house, which is the organisation. And the activity is called a Business. In that you have people running the business. So it’s like a family inside the house, an organisation that has to be smooth.”

Business:
A business is a specific type of organisation primarily engaged in commercial, industrial, or professional activities with the intention of generating profit. Businesses typically involve the production, distribution, or sale of goods or services to customers in exchange for money. The term “business” is often used to refer to both small and large commercial enterprises, encompassing a wide range of industries and sectors.

Company: A company is a legal entity formed to conduct business activities. It is a type of organisation with a distinct legal entity separate from its owners or shareholders. A company can be a for-profit entity or a non-profit organisation. It can encompass various forms, such as corporations, partnerships, limited liability companies (LLCs), and sole proprietorships.

Ibu Hanim describes a Company as a formality to how you register that organisation, be it in the berhad mode, sendirian berhad or as an enterprise. That’s why we call it Syarikat. But mostly it is for legal purposes.

In summary, while these terms share some overlap, the key distinction lies in their focus:

– Organization: Refers to any structured group of people with a common purpose or goal.

– Business: Refers to a specific type of organisation engaged in commercial activities to generate profit.

– Company: Refers to a legal entity formed to conduct business activities, encompassing various legal forms.

It’s important to note that the usage of these terms can sometimes depend on regional language conventions and legal definitions, so context is crucial in understanding their precise meanings.

If you would like to know more about the difference between an “organisation,” “business,” and “company” from a veteran Organisational Development Specialists  with one of the biggest companies in the world, Petronas, head over to this LINK to hear how she takes her specialisation and help over 500 SMEs around the world develop a strong organisational structure.