The old economy refers to the traditional way in which business and trade were conducted before the advent of modern information and communication technology (ICT).

It focused on physical goods production, manual labour, and mechanical systems.

1. Business involved physical production of goods, such as farming, textile manufacturing, and mining.


2. Work was labour-intensive, requiring many workers to perform tasks physically.


3. The tools used were basic and mechanical, not automated or computerized.


4. Trade and communication took a long time due to lack of technology (e.g., letters, slow transportation).


5. Starting businesses often required large amounts of capital to buy machinery or set up factories.


6. Businesses served mainly local or regional customers; there was no global reach.

1. Slow communication due to lack of modern technology.


2. Limited market reach — businesses could only serve local or nearby customers.


3. Labour-intensive production requiring many workers.


4. High cost of setting up factories and physical infrastructure.


5. Low efficiency — production and delivery of goods took more time.


6. Physical distance and time were major barriers to trade and business.

The new economy refers to the modern way of conducting business, driven by technology, digital communication, and global networks.

It relies on knowledge, information technology, and the internet to create and deliver goods and services.

1. Production and services are based on information, technology, and digital skills rather than manual labour.


2. The new economy uses computers, the internet, and telecommunications for business operations.


3. Businesses can serve customers worldwide using e-commerce and online platforms.


4. Starting a business often requires less capital, as digital tools and platforms reduce startup costs.


5. Goods and services can be produced, marketed, and sold quickly with automation and technology.


6. Businesses can be run online without physical offices or shops.

1. Faster communication and business operations using digital tools.


2. Ability to reach customers globally through the internet.


3. Encourages innovation and creation of new products and services.


4. Allows flexible work, including working from home.


5. Provides opportunities for small businesses and entrepreneurs.

1. Digital divide — not everyone has access to ICT tools and the internet.


2. Cybercrime and security risks threaten online businesses and users.


3. Need for continuous learning of new digital skills and technologies.


4. Job losses in some traditional industries due to automation.


5. High cost of setting up advanced ICT infrastructure in some areas.


6. Risk of data privacy breaches and misuse of personal information.

	Feature	Old Economy	New Economy
1	Labour	Manual, labour-intensive	Technology-based, automated
2	Production	Physical goods	Knowledge, information, and digital goods
3	Tools	Mechanical tools	Computers, internet, digital devices
4	Market Reach	Local/regional	Global
5	Communication	Slow (letters, physical delivery)	Instant (email, internet, mobile)
6	Startup Cost	High capital needed	Lower capital (digital startups possible)