Question

Write short answers of the followings.

What are the basic features of cottage industry?

Answer 1

The following are the important features of cottage industries:
i. Ownership: These are rural-based industries owned and operated by individuals who invest their private resources in these units.
ii. Employment: These industries generally do not hire labourers but employ the owners’ family members.
iii. Talent and skills: Usually, the talent and skills required for cottage industries are restricted to particular families. These skills are passed on from one generation to the next.
iv. Level of capital and production techniques: The amount of capital is very small, and the production techniques are highly labour-intensive and indigenous.
v. Market: Although production is primarily carried out for self-consumption, a portion of the output is sold in the local market as well.
vi. Small scale production: Cottage industries do not undertake mass production. They produce goods in low quantities but ensures that the quality of goods produced is of superior quality.
vii. Use of agricultural goods: Cottage industries mainly uses agricultural goods as raw material and are situated near the places where these agricultural goods are grown.