COTTAGE INDUSTRIES

Question 1

What are Cottage Industries?

Answer 1

Are skilled occupations

Question 2

What are the characteristics of Cottage Industries?

Answer 2

1. It is usually carried out at home
2. Production is often done manually or with the use of simple machines
3. They operate on a small scale
4. Raw materials are usually found locally free of charge or at a small fee
5. Family members are often used as the source of labour.

Question 3

What are the Advantages of Cottage Industries?

Answer 3

1. The worker can work at home at his / her own pace and often look after the family at the same time
2. The entrepreneur only employs other workers when there is work to be done. He does not have to do so in the slack periods.
3. The worker can be helped by members of the family
4. It provides a source of self-employment and income
5. It cuts down on the importation of certain items
6. There is no need for a large space because the operation is usually small
7. Equipment is not costly
8. The money earned can be used to supplement a regular income.

Question 4

What are the Disadvantages of Cottage Industries?

Answer 4

1. The worker normally has to put in long hours of work to earn a living
2. He she may get no work and, therefore, no money in slack periods
3. He/she can only use simple, cheap machines and may not be able to compete with goods produced in a well-equipped factory.
4. Sometimes there is not a ready market for the product, and self - marketing may therefore be necessary
5. Prices in craft markets are not encouraging unless there are advanced orders from buyers.