1. The traders brought together the craft spersons under one roof so that they did not have to go to each one’s home or explain their requirements to each person.
2. They set up small workshops called manufactories.
3. The craftsmen brought their own tools and worked with raw materials given by the trader.
4. The trader then took the produce and sold it in the market.
5. In this way slowly the control of the trader over the craftspersons increased. This phase is called ‘Proto – industrialization’.