The difference is the Profit Margin.

Profit is vital to the theory and practice of Capitalism, world economic development for rich and poor alike requires investment in buildings, machines, technology and people.

Investors, those who put up venture capital expect to get a return on their investmen, they buy shares in a company when it is “floated” as a new enterprise or the shares of the company may be bought and sold in the course of trading.

The Profit enables the share holders to be given a dividend, the workers to be rewarded with bonuses, the share price to rise and more money come in for investment. From this new investment will come more research and development, more manufactured goods and a higher standard of living.