The development of the political parties formed in the early republican can be attributed to the rivalry between Thomas Jefferson and Alexander Hamilton.
Jefferson was a strong anti-federalist and would help to develop the Democratic-Republican party. Jefferson's focus on a small central government, states rights, and developing a nation based on independent farmers was a message that spoke to many rural communities.
On the other hand, there was Alexander Hamilton. Hamilton favored a strong central government, the development of an industrialized economy, and a loose interpretation of the US Constitution. Hamilton was supported by Northern merchants and wealthy elites, especially in the Northeast.
These two vastly different goals for America helped to spark the Federalist and Democratic-Republican parties in the United States during the early Republic.