>Guilds of merchants and craft workers were formed in medieval Europe so that their members could benefit from mutual aid. Guilds ensured production standards were maintained and that competition was reduced. In addition, by members acting collectively, guilds achieved political influence. There were two main types of guilds: merchant guilds for traders and craft guilds for skilled artisans. > >Entry requirements to guilds became stricter over time as those who controlled the guilds became part of a richer middle class and set a higher membership fee for outsiders. This new bourgeoisie successfully sought to maintain their position above workers without the means or skills needed to run their own small businesses. [1](https://www.worldhistory.org/Medieval_Guilds/) ##### Guilds and the transition to capitalism: As markets expanded and technologies advanced, the guild system became too restrictive to meet growing demands and accommodate new methods of production. The transition to capitalism, with its more open, competitive, and innovative environment, marked a decline in the guild system’s relevance and effectiveness.