Arkwright and John Smalley set up a small horse-driven factory at Nottingham.
To obtain capital for expansion, Arkwright formed a partnership with Jedediah Strutt and Samuel Need, wealthy nonconformist hosiery manufacturers.
In 1771, the partners built the world's first water-powered mill at Cromford, which covered both carding and spinning operations and employed 200 people.

In 1776 Arkwright built a second, larger mill at Cromford and, soon afterwards, mills at Bakewell, Wirksworth and elsewhere (see below).
His success as a businessman and innovator was widely recognized in his own time.
The spinning frame was a significant advance over Hargreaves's spinning jenny, in that very little training was required to operate the machinery, which produced a strong yarn suitable for warp threads.
Arkwright and John Smalley set up a small horse-driven factory at Nottingham. To obtain capital for expansion, Arkwright formed a partnership with Jedediah Strutt and Samuel Need, wealthy nonconformist hosiery manufacturers. In 1771, the partners built the world's first water-powered mill at Cromford, which covered both carding and spinning operations and employed 200 people.
In 1776 Arkwright built a second, larger mill at Cromford and, soon afterwards, mills at Bakewell, Wirksworth and elsewhere (see below). His success as a businessman and innovator was widely recognized in his own time. The spinning frame was a significant advance over Hargreaves's spinning jenny, in that very little training was required to operate the machinery, which produced a strong yarn suitable for warp threads.
Richard Arkwright