The business environment consists of both the macro environment and the microcenvironment. Following are the differences between the two:

1. The micro environment periphery of the company and affect its ability to do routine functions. Macro environment refers to all forces out of the company boundary.
2. Micro environment includes the company itself, its suppliers, marketing intermediaries, customer markets and competitors. Whereas macro environment includes demography, economy, natural forces, technology, politics, legal and socio-cultural.
3. The elements of micro environment are specific to the said business and affects it’s working on short term basis. The elements of macro environment are general environment and affect the working of all the firms in an industry.