When we think about business, we may conjure thoughts of sole entrepreneurs, large corporations, or mid-sized offices; we always think about the great American Dream and giving our best to deliver a valuable product.
History and business are inevitably intertwined since huge business players could shape history altogether, and innovators have taken advantage of those opportunities of all historical circumstances.
Here are some historical business facts.
Business in the Pre-Industrialized World
The economic activities before industrialization were the world’s agriculture. But even during those times, there were non-agricultural activities in handicrafts, trade, household, and rural industries. Exchanges began as barter between individuals and families but gradually grew into a systematized form and spread across multiple countries and continents. Evidence of local and international trading can be traced throughout the major ancient civilizations, showcasing extensive economic interactions.
Historical records and archaeological findings in China reveal the Silk Road’s significance, facilitating trade in precious jewels, silk, and spices. The Roman Empire thrived on international commerce, exchanging goods such as metals, wine, and olive oil. With its strategic location, Egypt engaged in the trade of precious metals, papyrus, and spices. These transactions exemplify the diverse and valuable commodities exchanged globally, highlighting the interconnectedness of ancient civilizations in their pursuit of economic prosperity and cultural exchange.
During the early days, manufacturing had diverse levels. The rural accumulation consisted of metal crafts, weaving, and wood-based manufacturing. In the urban centers, trade activities dominated. Like always, multiple classes of people specialized in these trading activities only.
By the century B.C., international trade spread across Europe and Asia. All the traders would cross across the countries and exchange products. During this time, there were significant empires across regions in Europe, Persia, India, and China. Just the existence of large conglomerates helped trade to thrive.
Business During Industrialization
Industrialization developed a new meaning for business with the advent of machines. Before that, the factors of production were labor and land, both of which were limited. Machines came into technology, which multiplied the labor competency and allowed for extra production far beyond the producer’s consumption capacity.
This capacity of surplus production created the incentive for trading and, in turn, shaped the modern markets. The surplus production gave rise to the need to find a new trade route and markets. The European sailors started to attempt their historical journeys to find new ground. Christopher Columbus, who went on a search journey of a sea route to the East, discovered the new world now called America. From 1602 A.D. onwards, the Dutch East India Company enjoyed its dominance over these routes for two centuries. It became the first multinational corporation until the British East India Company later replaced it.
The colonization of Asian countries was based on gunpowder power, and industrial wealth was just a by-product of international trade, which these trading companies dominated globally.
In the 19th century, business and trade reached unprecedented levels and took center stage in human social existence. It was at that time the economy became monetized. Money that seemed like gold or silver was now just held as paper. Additionally, this was also the time when artificial business identities started taking deep roots in America. By the end of the 19th century, the company recognized future giants.
And these involved the Carnegie Steel Company, which Andrew Carnegie created in the 1870s. By the early twentieth century, European countries were competing to dominate the world business, followed closely by the American company. Japan made noteworthy progress, but the rest of Africa. Asia and even Latin America should have been included.
The efficiency of business of certain countries in today’s age placed them in the developed category, which is why creating a North-South division in the global community. Plus, it also made stakes that were entirely worth it.
Overall
If you sit to talk about business history, it is a vast, complex, and controversial topic for most. You will hear people telling you different stories and concepts. We are not saying pictures are wrong, but every country, continent, and region has ways of figuring things out and continuing a business.
Learn as much as you can about the business history; it can help you while producing your corporation ideas or establishing a business. Learn from the mistakes of previous business owners.
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