It works for me. For example I bought a smithy in a city, but there wasn't much iron ore in the city. So I went and found a village that produces iron and went back and sold iron in my city. My workshop then started gaining money. It just speeds up the money making process if there's raw materials available in the market of the city.

Now I don’t want this to get patched, but hear me out. Workshops make more money if their raw resources are in high supply. Additionally, resources sell for more if they’re in low supply at the town. Towns will stockpile resources if they don’t have a workshop in that town to use up that particular raw resources.

Steam Community: Mount & Blade II: Bannerlord. I know I butchered names As of 1.5.7 these are the best workshops for each town Also added some helpful hints and suggestions -----Time Stamps-----
Mount and Blade 2: Bannerlord offers this opportunity through the workshop mechanics. Players can essentially purchase workshops in the game in order to earn a passive income.
Mount & Blade II: Bannerlord . you can make more money from workshops and increase the number you have at any one time. To find a Bannerlord workshop, you’ll need to search cities and
Investing in a Workshop - How to Make Money - Economy | Mount & Blade II: Bannerlord | Gamer Guides® Hidden Pawn 259 One-Handed 273 Two-Handed 274 Polearm 275 Bow 276 Crossbow 277 Throwing 278 Riding 279 Athletics 280 Smithing 281 Scouting 282 Tactics 283 Roguery 284 Charm 285 Leadership 286 Trade 287 Steward 288 Medicine 289 Engineering 290
This mod is opted-in to receive Donation Points. A minimalistic mod for maximum compatibility. Build as many workshops as you can afford. Pro tip: Invest only in profitable workshops. Note that if a workshop is losing money, it does not appear in the income tooltip. Downsides/balance: Enemies seize workshops you have in cities they own. 5xc0adK.
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    • mount and blade bannerlord how to make money from workshop