Which development during the late Middle Ages laid the foundations for capitalism in Europe?

I think the Mercantilism had been one of the major influences of modern capitalism. Although it was not as considered as part of capitalism, it paved the way to trade, banking, finance, accountancy, and other goods and services offered during this era. It was only then when Karl Marx and Adam Smith who had defined the word capitalism through their works such as Marxism and Economic Liberalism. In this, people were able to understand the idea of public and private properties. It also paved the way to social roles of people living in a certain society.