The capitalist system developed in Europe primarily due to factors such as the rise of merchant and banking activities, the growth of commerce and trade, the accumulation of capital through colonial ventures, and the development of a market economy. Additionally, the Protestant Reformation played a role in the development of capitalism by emphasizing the importance of individual achievement and hard work, which aligned with the principles of capitalism. The capitalist system thrived in Europe due to its innovative nature, which encouraged entrepreneurship, competition, and economic growth.
