History of Business - Essay Example

Following industrial revolution, entrepreneurs formed Corporations with the main purpose being to raise funds for expanding business operations (Pillay, 2015). The terms of engagement dictated that shareholders would receive dividends after the company gains a profit. Other firms were able to control an entire market thereby creating a monopoly situation within the economy. Most companies within the same industry made agreements on product prices as well as the manner of dividing business operations as time went by (Carroll & Buchholtz, 2014).

Another method of doing business that developed after Industrial Revolution was the formation of Trusts. Ideally, Corporations sharing the same market formed a trust, which took control of business activities through a group of trustees. . The economic philosophy under Laissez-Faire economics was of the perception that without government interference, businesses and the economy as a whole would perform best. Kurtz & Boone illustrated that unregulated markets would create competition in the market and thereby making prices to be fair for the consumers (2011).

Related to this theory are aspects of Social Darwinism. Social Darwinism stood on the ideology of helping the rich as the poor did not benefit the financial health of a nation. The emergence of technology in the 19th century marked the beginning of the entrepreneurial era. Lussier demonstrated that entrepreneurs became an instrumental aspect of business by combining various factors and coordinating labour in order to ensure business processes are effective (2012). Upper class, upper middle class, lower middle class and the working class were the main divisions of the social class.

Essentially, the upper class and the upper middle class became the target market for entrepreneurs whose aim was to maximise profits and expand the market share. The production era persisted in the period after the civil war of