Ancient business practices were so good
Lessons from Old Barter System and Basic Trade
Hello, 👋
The present-day idea of business has brought real economic development to humanity but it often seems to miss something. It seems that it has become super powerful to start exploiting environment and core essence of humanity. I often struggled to understand what went wrong and how we can correct it. This is my attempt to understand business from scratch. This is a series starting with this post.
In this post we will try to understand the origin of business and what were the good things in those times compared to its modern idea. Enjoy!
Garvit Sahdev enjoys understanding ideas that shape our world. The Thoughtful Tangle is an initiative to share this journey and experience with his friends who love to do the same. He selects one idea and dives deep into it to understand its basics, relevance, impact and opportunities around it.
We are doing a series on ‘business’ as it is truly an idea which shaped the evolution of humanity and is still shaping it in many ways. Check out this series at
» The Business Series | The Thoughtful Tangle
Ancient Beginnings: Barter and Basic Trade
The origins of business can be traced back to the simplest forms of exchange in human prehistory. These early transactions laid the groundwork for the sophisticated economic systems we see today.
Before the invention of money, people engaged in barter—directly exchanging goods and services they had for those they needed. For example, a farmer might trade grain with a potter in exchange for clay pots. For barter to work, both parties had to want what the other offered. It was difficult to agree on the relative value of goods. How many fish equal a spear or a basket of grain? Perishable goods like food were hard to store or transport, limiting the scalability of trade.
As societies grew, people began gathering in common places to exchange goods. These markets evolved into the first economic hubs. In small communities, trade took place within tightly knit groups. Goods like livestock, tools, and food were common trade items. Over time, people began specializing in specific trades or crafts. This led to surplus production and the need for organized exchange. In the Neolithic period (around 10,000 BCE), early farming communities traded pottery, obsidian, and tools.
Even in ancient times, certain individuals or families began operating as proto-business entities. "Proto-business entities" refers to the earliest forms of business structures that existed before the development of modern, legally recognized business models like corporations or partnerships. People who traveled between villages, trading goods like salt, spices, or textiles, became early business agents. Blacksmiths, potters, and weavers produced specialized goods, often trading them in centralized markets.
The limitations of barter led to innovations that made trade more efficient. Items with inherent value, such as shells, grain, or livestock, were used as primitive money. Around 3000 BCE, Mesopotamian societies began using precious metals like silver for trade, measured by weight. The Sumerians developed clay tablets to record transactions, marking the beginning of bookkeeping. These tablets recorded quantities of goods traded, debts, and payments.
As trade became more complex, societies developed rules to ensure fair exchanges. The Code of Hammurabi (circa 1754 BCE) is one of the earliest known legal codes, it outlined business practices, including loans, interest rates, and penalties for fraud. Standardized systems ensured that merchants couldn’t manipulate trade by using inconsistent measures.
Early civilizations recognized the benefits of interregional trade. Cities like Ur and Babylon traded with the Indus Valley (modern-day Pakistan) and Egypt, exchanging textiles, grains, and precious metals. Egypt traded gold and papyrus with neighboring regions for timber and copper. Although formally established later, rudimentary trade routes connected the East and West, facilitating the exchange of luxury goods like silk and spices.
This early phase of business set the stage for more structured economic entities and long-distance trade networks that emerged in subsequent eras.
» Summary:
Barter > Local market > Experts > Traders > Money > Bookkeeping > Rules
Now, let’s see what were the key advantages of these early stages.
Community-Centric Economics vs. Profit-Driven Economies
In the barter system, trade was primarily local, fostering close-knit communities where trust and mutual benefit were essential. Transactions were guided by needs rather than surplus accumulation or profit motives. Capitalism often prioritizes profit over community well-being, leading to issues like economic inequality, worker exploitation, and social alienation.
» Needs centricity checked unreal focus on growth
Sustainability in Resource Use
Barter systems operated within the constraints of local resources, making over-extraction unlikely. The reciprocal nature of trade fostered an inherent respect for natural limits and sustainable resource use. Capitalism’s focus on mass production and profit leads to resource depletion, environmental degradation, and climate change.
» Natural limits in production sustain resource consumption.
Value-Based Exchange vs. Commoditization
Barter emphasized the inherent value of goods and services, with no artificial monetary measures dictating worth. Capitalism commoditizes labor, time, and even nature, often stripping away their intrinsic value. Nature is reduced to commodities like carbon credits or water privatization, ignoring its fundamental role in life systems.
» Value based exchange ensured conscious consumption
Trust and Relational Economics
Barter relied heavily on personal relationships and trust. Agreements were social contracts, often binding through honor rather than enforcement.
» High trust ensured social wellbeing
Addressing Economic Inequality
The barter system inherently lacked extreme wealth accumulation because transactions were directly tied to individual or communal needs rather than speculative profit. Capitalism’s growth-at-all-costs mentality often leads to wealth concentration and systemic inequality.
» Decentralism and natural productivity limits serve as checks on both the supply and demand sides of transactions, curbing the potential for wealth accumulation.
Slow Pace of Growth vs. Hyper-capitalism
Economic growth was gradual, organic, and tied to real-world needs rather than speculative ventures or rapid expansion. Hyper-capitalism prioritizes short-term gains, leading to unsustainable growth, market bubbles, and economic crashes.
We are doing a series on ‘business’ as it is truly an idea which shaped the evolution of humanity and is still shaping it in many ways. Check out this series at
» The Business Series | The Thoughtful Tangle
ABOUT THE AUTHOR
Hey everyone, I'm Garvit Sahdev 😎. I'm on a mission to gain a deeper understanding of the world, and to develop solutions that can trigger significant global change.
My curiosities span various domains including food, business theories, material science, market size calculations, economics, politics, and sports, etc. 🧐
Professionally, I have a diverse background spanning startups, consulting, policy development, market research, system building, ISO, colour physics, nanomaterial synthesis, textile chemistry, etc. 🐘
Note: Generative AI has been used for writing this piece under the supervision of the author.
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