As a result of quest in the historical background of business. It is revealed that in the early age, man had no idea of business. Living completely alone and with no make contact with the external world, he would completely depend for this livelihood upon his own exertions.
No doubt a man likes fabulous Sindabad or Robinson Crusoe as the monarch of the island, but only those wants were satisfied which he could have done by this own unaided efforts. When hungry, he had to go out and gather wild fruits, kill an animal or catch fish. If he was in need of clothing, he had made it himself from the skin of the animals; or he to hide himself in cave or to build a simple log cabin. In such circumstance, there was no possibility of his making exchange of goods with anyone since he had to do everything for himself. He would only be able to satisfy the most pressing one of his basic needs.Later on the occurrence of the growth of family can traced in the history. Which facilitated a certain measure of division of labor, Mother Looking after younger children, the father and older children taking over responsibility for providing food and defense to the family? With the expansion of families, trade came in to existence. Further division of labor become possible and a section including the headman and these immediate followers used to be engaged in wars with rival groups or tribes for self- existence.
With the development of agriculture, the tribe settled in particular area or areas. Women often took over the cultivation of the land, thereby giving the man more time for defense or fighting. In attendance was still no commerce, the tribes used to be self-sufficient and often goods were obtained by power from the competitor tribes. With a certain level of civilization being reached, the trades or different groups of people came into peaceful contract for exchange of goods and the first commercial transaction took place. These come to be known as Barter System. Thus Robinson Crusoe economy, changed into Barter Economy.