Despite the absence of a natural harbour, Chennai's coastline attracted European attention in the sixteenth and the seventeenth centuries. In truth, the major disadvantage was the hot and humid climate of Madraspattanam, (the official name of Chennai as specified in the records of the nineteenth century). Even today, businessmen and investors agree that the climate is one of the few deterrents to trade in Chennai. Europeans found an architectural solution to escape the sweltering heat of Chennai. High roof buildings prevented the heating up of rooms. Use of wood in the interiors also lessened the heat trap. The Senate Building of the Madras University and constructions within the Fort St. George are outstanding examples of such architecture.

When Europeans started trade with India in the eighteenth century, it acted as a stimulus to trade activity among the natives. Traders and investors in Madras were different from those in other presidencies. Parsis, in Bombay, were a strong trading community. They were a professional class of traders, hence, the roots of commercialism were more firmly laid there. But in Chennai, most of the native businessmen who took to trade in pre- British times, were the Chettiars and the Iyengars. Most of them belonged to a money-lending class, who took up business as they had surplus money. This initial absence of professionalism restricted the scope of business as commerce in Chennai grew on traditional lines.

Several foreign names were instrumental in recognising the business potential and responding to the opportunities that Chennai presented initially. On 17th July, 1788, Thomas Parry landed in Chennai to trade as a free merchant and he set up what is today the oldest mercantile name in the city and one of the oldest in the country (EID Parry). John Binny came to Chennai in 1797 and the firm he established was christened Binny & Co. in 1814. In 1920, Binny's began managing the entity that was formed from the amalgamation of the Buckingham Mills and the Carnatic Mills. Spencer's which had its origins in a small business started in 1864, went on to become the biggest department store in Asia at the time. The original building which housed Spencer & Co. was burnt down in a fire in 1983 and the present structure houses one of the largest shopping complexes in the country - Spencer Plaza. Other prominent names that brought commerce to the city included Gordon Woodroffe, Best & Crompton, Higginbothams, Hoe & Co and P. Orr & Sons.

British presence in the city also ensured the early establishment of the important commercial organisations. The Madras Chamber of Commerce was founded on September 29th, 1836 by Fredrick Adam, Governor of the Madras Presidency (making it the second oldest Chamber of Commerce in the country). In 1856, the Madras Trades Association was established. In 1920, the Madras Stock Exchange was formed.

Of the Indians who pioneered business in Chennai, a few names lead the list - TVS Iyengar (Founder - TVS group), T T Krishnamachari (founder - TTK group), M. A. Chidambaram (Founder - SPIC group), Kasturi Ranga Iyengar (one of the The Hindu's most admired Editors), K.M. Mammen Mappillai (Founder - MRF group) and Desodhakara Pantulugaru Nageswara Rao (Founder - Amrutanjan).

Today, with its new thrust in Information Technology, Chennai is building on the foundations of its strong industry base. A new breed of entrepreneurs is seizing the initiative in several fields; from Broadband technology to biotechnology, telecommunication to Web development solutions. But certainly the city and its business houses will continue to draw lessons on entrepreneurship from the early founders of Chennai's mercantile presence.