Sixteenth and seventeenth centuries were marked by the significant shifts in social, religious, and political life. Because the church no longer dominated over society, rapid growth of lay literacy and progressive movement occurred in Europe, particularly, in such powerful states as Spain, Italy, Germany, and England.
In political terms, the beginning of the 16th century introduced competitive state systems, as well as further explorations of trade routes.
Because the period was the time of active voyaging and exploring the new boundaries, such countries as England, Spain, France, and Portugal expanded significantly their influence by conquering territories in different areas and trading precious materials.
Developing new commercial routes had a potent impact on business development of London that became business and commercial capital of Europe.
In the middle of the sixteenth century, a sequence of important expeditions was carried out by English explorers, which led to the expansion of the territory.
In particular, merchants discovered routes to Asia and Northern America and craved new resources and riches that promoted significantly trade relations and improved business in London. This is of particular concern to the Elizabethan Era during which many achievements could be highlighted in the exploration field.
Thus, Francis Drake was among the first English explorers who returned with precious spices and other riches. The explorations led not only to expanding the boundaries of England, but also to the great wealth and power of the monarchy.
Aside from trade activities and scientific discoveries that had a great impact on business and commercial development of England, the country was also involved into colonization process to spread its political and economic influence.
Along with the development of new lands and commercial routes, England also experienced transition to a capitalism that activated domestic production and contributed to development of workshops and guilds.
Changes in governmental systems also influenced significantly business development in London. Hence, new trends in production development and capitalism gave rise to the Reformation period.
In particular, shift of attention from church influence to a money-lending system. Trends in capitalism encouraged purposeful investment of financial resources that contributed to the prosperity of the capital of England.
Apart from capitalism development caused by political changes, specific attention should also be given to speculative practices. The main point of speculation lies in attracting more money to the production sphere in London.
As a result, a system of stock broking emerged as a necessity to sell and buy a share of a commodity or enterprise. Further development of business and commerce led to the emergence of London’s coffee houses in 1650s. These sites were places where merchants gathered for concluding agreements.
Individual coffee houses had their specific clientele and identity. For instance, Edward Lloyd’s was the place where sea captains and ship owners came to discuss their business activities.
The places later developed into joint-stock companies and, as a result, such important monopolies as Hudson’s Bay and the South Sea had developed.
In conclusion, the rapid growth of scientific exploration and commercial trips influenced significantly the economic, political and business development in England in sixteenth and seventeenth century. As a result of such explorations, London become the center of business and commercial activities.
The emergence of coffee houses had triggered the development of joint ventures. In addition, the focus on domestic production had also attracted more foreign investments.