Evolution of Business
Presentation by Alex Merkulov
University of Phoenix
Business Evolution Milestones
Steam Engine &
Industrial Revolution
Feudalism
A.D. 500 - 1500
Mercantilism
Until 18th Century
Pre-capitalism
Capitalism
From early 19th Century
Growth of Property Rights
higher
lower
Time from Feudalism to Mercantilism and to Capitalism
Feudalism Overview
• Aristocrats control property rights to all
valuable resources, including people
(Mackenney, 2004).
• Church is suspicious of profit
• Nobles disdain commerce as unworthy
Mercantilism Overview
• Double-entry (P&L) accounting invented
• Positive balance of trade is encouraged
• Merchants and politicians begin to share
common economic interests (Castaneda,
2006)
Capitalism Overview
• Supply and demand freed from major
government control
• Resources are privately owned by
individuals and corporations
Commerce
• Increased over time with increasing
property rights
• Facilitates technological innovation
• Improves quality of life (Castaneda, 2006)
Industrial Revolution
• Attributed to invention of Steam Engine,
Railroad, etc.
• Raised enterprise required to run big
industrial business to high levels
• Fueled innovation
References
Mackenney, R. (2004). Industry. In J. Dewald (Ed.)Europe, 1450 to
1789: Encyclopedia of the Early Modern World, 3(pp. 255-262) New
York: Charles Scribner's Sons Retrieved March 1, 2009, from Gale
Virtual Reference Library via Gale:
http://go.galegroup.com/ps/start.do?p=GVRL&u=apollo
Castaneda, C. J. (2006). Capitalism. In J. J. McCusker
(Ed.)History of World Trade Since 1450, 1(pp. 103-108)
Detroit: Macmillan Reference USA Retrieved March 1,
2009, from Gale Virtual Reference Library via Gale:
http://go.galegroup.com/ps/start.do?p=GVRL&u=apollo