Section 1
England Seeks Power and Profit in America
Key Idea
In the late 1500s, England watched as its rival, Spain, grew incredibly wealthy from its colonies in the Americas. Eager to compete for power and resources, English leaders and merchants began looking for ways to establish their own colonies in North America. They hoped to find gold, create a base to attack Spanish ships, and claim new lands for England.
The English government promoted an economic policy of mercantilism, which stated that colonies should exist to make the home country wealthy and powerful. To fund the expensive and risky task of starting a colony, merchants formed a joint-stock company. These companies allowed multiple investors to pool their money together, sharing the risks and any potential profits from the venture. This model provided the financial backing for the Jamestown settlement.