This article addresses the connections between corporate collective action and economic development in the pre-industrial Low Countries. It focusses on a micro-historic case study: the textile industry of the village Nieuwkerke in the county of Flanders. This rural cloth centre witnessed an exceptional industrial expansion between the fourteenth and sixteenth centuries. Following the recent proposition by Bas van Bavel that market economies follow a fixed pattern of development, the chronology of the evolution of Nieuwkerke’s cloth industry can be discussed in terms of three phases. This article argues that the first phase of development (1358-c.1500) was characterized by limited success because of pressure from the city of Ypres. The second phase (c.1500-c.1550) was marked by an industrial boom, predicated upon successful corporate collective action intertwined with the perception of social equality among the village’s cloth entrepreneurs. The third and final phase (>c.1550) was one of stagnation and decline, caused by the breaking down of the collective and concomitant social polarization. The case study thereby closely conforms to van Bavel’s theory about market cycles. Yet, the correlation between economic decline and social polarization should in this case be understood in terms of changing perceptions of inequality, rather than increasingly unequal opportunities