Originally published June 17, 2022
Last updated May 19, 2025
When an international team of researchers set out to analyze sediment cores extracted in southern Greece, all their previous theories went out of the window.
It turns out that marketplaces composed of smaller sellers prevailed in Greece dating back to as early as 1,000 BC. The researchers identified a significant agricultural and grapevine production shift around this period with evidence pointing toward a thriving small market economy. These smaller and medium-scale merchants were wine sellers, cereal merchants, pottery dealers, and jewelers. They functioned much like modern small businesses and played a vital role in supporting the local economy.
The rise of these independent merchants correlated strongly with an increase in the overall prosperity of the people. Their efforts drove early forms of economic growth and paved the way for increased job creation, improved cash flow, and enhanced quality of life.
Civilizations embracing free trade enjoyed broader population-wide engagement as trade benefits were distributed amongst the citizens rather than concentrated in the hands of kings, pharaohs, and emperors. These civilizations also witnessed safer life, better health, less poverty, and broader civic engagement. These economic indicators resemble what today’s business owners and small business administration initiatives strive to achieve through entrepreneurship and innovation.
While researchers widely believe ancient Greece to be the biggest trade economy in early history, it isn’t the only region that had a massive impact on a global scale.
Let’s turn back time and retrace some of the oldest trade economies in history that shaped the world as we know it today. Empowering independent merchants and smaller-scale sellers was the foundation for most successful economies, much like the role small business owners and startups play today in the U.S. economy and beyond.
Ancient Egypt (6,000–3,150 BC)
Historian James C. Thompson uncovered strong evidence suggesting the existence of internal trade between Lower Egypt and Upper Egypt and also between individual districts of these two regions. Small and medium traders dealt in selling and exchanging ivory goods, gold jewelry, wooden products, and clothes. These early entrepreneurs functioned like today’s private sector participants, helping their communities thrive.
During this time international trade with Mesopotamia, ancient Egypt’s earliest trade partner, boomed. Experts and historians routinely observe a distinct Mesopotamian influence on Egyptian art and culture.
The quality of life of the Egyptians improved
Ancient Egypt possessed many natural resources, but they lacked in luxury goods. They acquired these items via international trade. It wasn’t until the Persian Invasion in 525 BC that currency was introduced, with trade prior conducted via barter.
To acquire these luxury goods, Egyptians offered goods in return, with small and medium traders rising to fill this need. They produced linen garments, utensils, and furniture. The only reason ancient Pharaohs and people of Egypt enjoyed luxury items is because small and medium traders made ongoing exchange possible. These sellers were early examples of the local business networks that help build financial institutions and community well-being.
The idea of unit currencies originated in Ancient Egypt
With markets in this period running on the barter system, value was measured in a unit called a “deben.” A deben functioned much like our modern currencies, except debens had no physical form. Historians estimate one deben was roughly equivalent to 90 grams of copper, and traders would assign a price accordingly. Traders and the public exchanged goods with a similar “deben-value” item. Many experts believe the concept of “deben” is one of the earliest recorded pieces of evidence evolving into the idea of currency. These early systems were the origin of cash flow and working capital that modern small firms now depend on.
Indus Valley (3,300–1,300 BC)
The Indus Valley civilization, or the Harappan civilization, lasted approximately 2,000 years. But it didn’t truly prosper until 2,600 BC, with the establishment of trade and agricultural marketplaces. As more people embraced agriculture, they came up with advanced farming and irrigation methods, including plows and irrigation.
Agricultural traders mass-produced crops such as millet, sesame, and rice in the summers and wheat, barley, and lentils in the winters. Initially, they traded produce with the Harappan people and with neighboring peoples, which led to the rise of import and export traders. These economic activities mirror the role of today’s entrepreneurs in expanding supply chains and enabling business growth.
Importers and exporters acted as the conduit between the Harappan agricultural traders and foreign traders. They imported jade and cedarwood from China, copper and lead from Ancient India, and minerals and oils from Afghanistan and Iran.
Recent discoveries suggest the Harappans were savvier than previously believed, trading ornaments made from seashells, pearls, stones, terracotta pots, and gemstones such as lapis and lazuli. At its zenith, the Indus Valley civilization was one of the wealthiest civilizations in history, with Harappan traders engaging in a free trade laissez-faire style economy. Their efforts reflect how small businesses today power global commerce, support job creation, and serve as engines of economic activity.
Increased focus on hygiene and sanitization
With booming internal and international trade, the Harappans quickly prospered. Archaeologists today keep making stunning discoveries about the breadth and the scope of their prosperity every time they unearth the remnants of the Indus Valley civilization. This prosperity improved the quality of life of the Harappan people as demonstrated by the discovery of a vast network of urban sanitation systems, an indicator of rising well-being, driven by increased economic activity.
The Harappans invented an advanced network of sewage and drainage systems centuries ahead of its time. It’s believed to be the most advanced sanitation system among all ancient civilizations; excelling in managing safe drinking water and disposing of wastewater. Evidence that the Harappans held cleanliness and hygiene in high regard. As a result, the Indus Valley civilization saw fewer illnesses and endemic diseases than other civilizations of its time.
Thank the Harappan traders for cakes and pizzas
Agricultural merchants grew and traded produce such as barley, wheat, sesamum, grams, beans, and other pulses. People experimented with cooking methods and techniques. Archaeologists have discovered underground and overground circular pits, ovens, covered with silt and plastered with lime. The Harappans knew how to make bread. Their culinary contributions, like those of today’s small food businesses, shaped regional cultures and contributed to well-being and local identity.
Ancient Greece (800–480 BC)
The Ancient Greeks represent the next major milestone in economic trade with their exponential growth in international trade circa 650 BC. Following the Greek dark ages of 1200 to 800 BC, the Greek city-states emerged. With a standard currency and advancements in transportation, Greek merchants helped launch some of the first structured economic systems. Their contributions resemble modern efforts supported by the U.S. Small Business Administration and similar global institutions.
Greek traders exported olives, wine, pottery, metalworks, and gold jewelry. They traded with Egypt, Asia, Cyprus, and Mediterranean countries. They also imported papyrus, linen, spices, and silk. These independent merchants were the early business owners whose success mirrored what we now refer to as startups and small firms fueling economic growth.
The rise of money lenders
As trade expanded and Greek affluence grew, they found themselves sitting over a considerable surplus of money. While the emergence of lending is disputed, Greek traders leveraged lending to transform the global economy. They started leveraged trade loans to facilitate trade, enabling merchants to grow their businesses at a much faster rate, something that is still utilized to this day. Small and medium traders borrowed money from this newly risen class of lenders and went overseas to purchase products—very much like today's small business loans and funding initiatives.
Traders could use maritime loans to pay for their cargo with interest rates ranging from 12–30%. These loans provided insurance as they didn’t require repayment for cargo lost due to shipwreck. While traders paid fees to get access to this capital, the overall benefit and security to growth and safety of their business was easily worth the small cost.
Roman Civilization (509 BC–476 AD)
At one point in history, Ancient Rome was the epicenter of global economic activity. Rome saw hundreds of thousands of small and medium businesses thriving, contributing to a growing GDP and stronger private sector. Like many business owners today, Roman merchants traded regionally and internationally.
Rome’s use of a single currency simplified transactions and reduced friction. They imported olive oil, wine, timber, marble, leather, tin, precious metals, glass, iron, and lead. They exported perfumes, papyrus, pottery, and gold. Small businesses played a vital role in economic development, just as they do today in cities like New York and across the United States.
Merchants turned Rome into a sophisticated economy
Merchants created land routes to avoid piracy at sea. As trade routes expanded, Rome built roads to improve mobility and reduce delivery delays. These routes became critical infrastructure, much like today’s supply chain networks, enabling trade and population growth. Economic prosperity spread rapidly, creating new businesses and improving overall well-being.
The importance of small businesses today
If there is one thing that the modern world shares with previous civilizations, it’s this — small businesses are the cornerstone of a buoyant economy. Countries with the highest GDPs have historically seen significant contributions from small and medium-scale businesses. Small businesses provide a counterweight to the powerful and politically connected. While few small business owners rise to fame, their combined power moves economies, lifts entire populations from poverty, and spreads freedom and opportunities to neighboring countries.
Statistics speak for themselves
You only need to look at these recent statistics to understand the extent of their contributions:
- The World Bank states that approximately 445 million micro, small and medium enterprises exist in the world — most in emerging markets.
- 70% of all small businesses have a single owner.
- 64% of small businesses started with working capital of less than $10,000 and grew with the help of affordable business loans.
- In just the US alone, there are 32 million small businesses — almost 99.9% US businesses.
- A whopping 97.5% of total exporters in the US in 2020 were small businesses.
- Small businesses employ 47% of the total US workforce, with approximately 60.6 million employees.
Final word
More than ever, small businesses create the path to prosperity, to safe, healthy and stable communities, and create opportunities around the world. Whether it's an online store, a brick-and-mortar outlet, an investment agency, or a digital marketing firm — small businesses drive the economy. If you are a small or a medium business owner, you’re a part of tradition of expanding freedom and opportunities for your neighbors near and far. History proves that freedom thrives far and wide the more small businesses grow and prosper. Small businesses drive economic prosperity.
