This chapter focuses on industrial location, industrial organization, technological progress, private entrepreneurship, labour force and industrial production. The economic situation of Europe after 1500 was to favour the growth of industrial production more than at any time since the Black Death. Many factors contributed to the development of industrial activity in certain areas of Europe in the later Middle Ages. Adequate supplies of raw materials, such as water, power and fuel as well as the primary product, the presence of an entrepreneurial class and a sufficient supply of cheap labour were all essential. The development of many European industries was directly affected by the nature of their organization. Many products were made by small masters, their families, with some journeymen and apprentices organized in craft gilds. In order to create an industrial plant, capital was indispensable. Capital was especially needed more in mining and in large-scale metallurgy.