The Big Business Definition in US History

The late 19th century saw a significant shift in the way American businesses operated, leading to the emergence of 'big business' as we know it today. Prior to this period, merchants, wholesalers, and manufacturers tended to specialize in a single operation, with little vertical or horizontal integration. However, by the late 1800s, corporations began to expand their operations vertically and horizontally, allowing them to engage in multiple phases of production and distribution.

This expansion led to the creation of large corporations that operated on a national scale, rather than being limited to a single town or region. Companies like General Electric had plants located across the country, with sales made to customers from coast to coast. In contrast, many businesses before this period were small, family-owned enterprises with limited resources and operations.

The rise of big business also brought significant changes in management practices. The need for central coordination and administrative structures became increasingly important as companies grew larger. To address this challenge, businesses created formal departments such as purchasing and accounting, and established clear lines of authority and management hierarchies.

Another key aspect of the big business revolution was the emergence of a new middle class - white-collar employees who worked for corporations rather than being small business owners or independent professionals. This shift marked a significant departure from the traditional middle class, which consisted mainly of farmers, shopkeepers, and professionals.

The creation of large corporations also led to changes in the way businesses were financed. Gone were the days of single-person or partnership financing; instead, big businesses required massive investments of capital to fund their operations. The most notable example is Rockefeller's Standard Oil Company, which was worth a staggering $600 million by the late 1800s.

In conclusion, the rise of big business in the United States during the late 19th century marked a significant turning point in American economic history. It brought about changes in management practices, financing, and the emergence of a new middle class, all of which had far-reaching implications for the country's economy and society.

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