Erik Gustav Olsson began his professional career in 1880 as a precision mechanic at Munktells Mekaniska Verkstad in Eskilstuna. In 1883, he moved to Torps bruk in Småland, where he took a position at Torps Mekaniska Verkstad. In 1896, he started his own business, E.G. Olssons Mekaniska Verkstad. He obtained several patents, including those for egg box locks and suitcase handles.

Already in 1887 he manufactured miniature steam engines, which were sold through advertisements in daily newspapers. His range included about six different steam engines with prices ranging from 1.50 to 12 SEK. He continued producing his miniature steam engines with accompanying saws until his death in 1929.

In 1896, he received an honorary diploma for his miniature steam engine at the "Industrial and Handicraft Exhibition in Malmö." The following year, 1897, he participated in the "Art and Industry Exhibition in Stockholm," where he showcased a small wood lathe alongside the miniature steam engine. For this, he received a bronze medal and a diploma signed by Crown Prince Gustav. The diplomas are held by 'Alvesta Järn- och Metallförädling AB', founded in 1938 by the son of Erik Gustav alongside five additional employees.

During the years from 1906 until 1923, the steam engines are sold by Alfr. Olssons Verkstad, Moheda.

See also A History of Toy Steam in Sweden.