(i) With the expansion of world trade and the acquisition of colonies in different parts of the world the demands of goods began to grow. But the merchants could not expand production in towns. So they had to persuade the rural artisans and craftsmen to produce goods for international market, which was often difficult.
(ii) The main obstacle for the merchants in towns were the powerful merchants and crafts guilds. These guilds were association of producers who trained the crafts people, maintained control over production, regulated competition and prices and restricted the entry of new people into the trade.
(iii) Rulers granted monopoly right to production and trade in specific products only to the guilds. It was therefore difficult for new merchants to set up industries in towns.