Business in the Middle Ages: What Was the Role of Guilds?

Guilds are defined as associations of craftsmen and merchants formed to promote the economic interests of their members as well as to provide protection and mutual aid. As both business and social organizations, guilds were prolific throughout Europe between the eleventh and sixteenth centuries. A significant part of the skilled labor force in medieval cities was structured around the organization of guilds, which provided economic, educational, social and religious functions. The study of guilds provides opportunities for teaching several key economic concepts in a historical context, including specialization, division of labor, productivity, human capital (skills or education), monopoly power, economic systems, and labor unions.