Companies, in the early centuries, merely existed in the form of organizations. However, the traditional form of company was reshaped during the fifteenth century, by means of a special document referred to as charters. This writing will initially provide a concise depiction on how charters provided different companies with fairly convenient privileges that led to an innovation for business development. This essay will also shed light on the first company that settled in the New World with charter protection – the Virginia Company. Furthermore, the paper will incorporate greater emphasis on this company’s significant influences toward three main aspects, its effect on business development, which started off by means of the tobacco commerce throughout the New World and Europe; the impact on colonization, which was essentially portrayed by the headright system that took shape during the seventeenth century, and its influence towards politics, fundamentally due to the creation of the House of Burgesses that provided some measurement of self-government.
During the fifteenth century in Europe, the emergence of chartered companies have brought forth a distinct new era for trades as well as a strong influence that altered business developments.
Charters were first granted to municipalities and guild of all sorts, whose operations were necessarily limited to particular localities within the State. When communities extended their operations beyond the seas, when they develop commercial relations between their own and foreign countries, these operations in semi-barbarous times become risky, and need the protection both of their own rulers and of the foreign States.
Charters enables municipalities, in other words, companies with special privileges toward colonization, exploration, trade and many other fields; in exchange, the company must follow certain obligations brought forth by the issuer. It would have been impossible if explorers solely relied on themselves to start expeditions to the New World bearing all the risks; moreover, charters provided companies with monopolizing authorities such as land ownership in colonies. The Virginia Company, in particular, was the first chartered company to set foot in the New World which came across various unprecedented experiences during its first colonization period. These unique experiences, however, brought forward many innovative business ideas in successfully overcoming these hardships. Amongst which the Virginia Company managed to combat its financial crisis by financing the company by combining the company’s shares with patriotism, as well as the lottery fundraising venture, some of which are even the pioneers of today’s fashion. Specifically speaking, the most crucial innovation that thoroughly altered the colonization and business development of North America, driven by the tobacco economy, was the headright system, from which attracted many colonists with land grant. The consequence was undoubtedly...