ECONOMICS (CBSE/UGC NET)

Detailed explanation-1: -What Is a Cottage Industry? A cottage industry is a small manufacturing business that is owned and operated by an individual or a family, typically operating out of a home rather than a purpose-built facility.

Detailed explanation-2: -Before the Industrial Revolution, people made what they needed on their farms by hand. That changed when people invented machines to make products much faster and easier than they could be made by hand. People working at those machines made money, and bought items like food and clothing instead of making them by hand.

Detailed explanation-3: -In conclusion, the cottage industry is the term that historians use to identify production that was completed before the start of the Industrial Revolution. It involved people producing goods on a very small scale in their homes and was not centralized in one location.

Detailed explanation-4: -Before the Factory System Before urbanization and industrialization, most production was accomplished by a system called the cottage industry. In the cottage industry, peasant families produced more goods than they needed to use themselves and sold them to others.

Detailed explanation-5: -During the Industrial Revolution, family-based cottage-industries were displaced by the factory system, a method of manufacturing using machinery and the division of labor. The factory system was first adopted in Great Britain at the beginning of the Industrial Revolution in the late 1700’s.