The Industrial Revolution reshaped business practices and societies globally, introducing technological advancements that revolutionized work and living conditions. Spreading rapidly worldwide, the Industrial Revolution brought us many inventions that we practically live off of today. The steam engine, power loom, spinning jenny and many more immensely boosted efficiency by transforming our methods of production.
However, this system also brought an extreme hunger for efficiency. A hunger so great that workers (women and children included), suffered through harsh conditions for long hours only for a fraction of a fraction of a fraction of what entrepreneurs made. Later on, due to the extreme rise in production and goods available for purchase, businesses shifted focus from local markets to the broader consumer base that included the middle class. This paired with the sudden urbanization, improvements in infrastructure and emergence of working-class culture caused by the influx of workers and their families to areas with job opportunities counteracted the poor working conditions and set society on the path it is on today.
The development of iron and steel production techniques, railroads, and steamships revolutionized transportation, enabling goods to be shipped faster and over longer distances.
These advancements facilitated the growth of global trade and laid the foundation for today's interconnected global economy. Said interconnectedness went on to evolve our pre-existing business models into more advanced ones such as corporations. They were entities legally distinct from their owners, providing limited liability to shareholders. This meant that individual shareholders were only liable for the company's debts up to the amount they invested, safeguarding their personal assets. This allowed companies to attract a broad base of investors, providing the necessary capital for expansion, technological advancements, and infrastructure development.
The Industrial Revolution's legacy is evident even today in modern capitalism through the emphasis on mass production, industrialization, and economic growth. Only now, changes in societal norms have resulted in improvements of labour rights and the creation of regulations to protect workers from exploitation. In conclusion, the Industrial Revolution was a transformative period that changed the world of economics and business forever and laid the foundations for the global economy. For better or worse, we as a society and as a people would not be anywhere near where we are if not for the revolution.
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