Question

The main problem of small and cottage industry is ________________.

• A. Shortage of financial resources
• B. Limited market
• C. Lack of research and modern technology
• D. All of these

Answer 1

The correct option is D All of these

The main problem of small and cottage industry are:-

In these economies, cottage industries play a vital role in the economy in regions like Asia and South America. One of the ways they serve the economy is the provision of employment, especially since they involve a lot of labor. In urban areas, the income generated is likely negligible. However, these kinds of workshops in rural places can actually raise sufficient income to supplement the income from selling crops. These workshops can sell their

goods in a local market or seek an eternal one.

As the country develops and the amount of wages increases, these industries are forced to adapt and acquire newer technologies. Consequently, they will also have to compete with other firms for experienced labor, which further increases the challenges. Those industries that can adapt end up making the most profit while others close up or stagnate.