The main difference between Nepotism and Cronyism is that the Nepotism is a favoritism granted to relatives and Cronyism is a practice of partiality.
Nepotism is based on favour granted to relatives in various fields, including business, politics, entertainment, sports, religion and other activities. The term originated with the assignment of nephews to important positions by Catholic popes and bishops. Trading parliamentary employment for favors is a modern-day example of nepotism. Criticism of nepotism, however, can be found in ancient Indian texts such as the Kural literature.
Cronyism is the practice of partiality in awarding jobs and other advantages to friends, family relatives or trusted colleagues, especially in politics and between politicians and supportive organizations. For instance, this includes appointing “cronies” to positions of authority, regardless of their qualifications.
Cronyism exists when the appointer and the beneficiary such as an appointee are in social or business contact. Often, the appointer needs support in his or her own proposal, job or position of authority, and for this reason the appointer appoints individuals who will not try to weaken his or her proposals, vote against issues, or express views contrary to those of the appointer. Politically, “cronyism” is derogatorily used to imply buying and selling favors, such as: votes in legislative bodies, as doing favors to organizations, giving desirable ambassadorships to exotic places, etc.
The favoring of relatives or personal friends because of their relationship rather than because of their abilities.
“Nepotism can get you very far in the world if you’ve got the right connections.”
Favoritism to friends without regard for their qualifications, especially by appointing them to political positions.