Cottage Industry

Business, Legal & Accounting Glossary

Definition: Cottage Industry


Cottage Industry

Quick Summary of Cottage Industry


An industry where the creation of products and services is home-based, rather than factory-based. While products and services created by cottage industry are often unique and distinctive given the fact that they are usually not mass-produced, producers in this sector often face numerous disadvantages when trying to compete with much larger factory-based companies.




Full Definition of Cottage Industry


A cottage industry is a system of production which takes place in private homes rather than in a factory, with the tools and other means of production individually owned. Often products produced by a cottage industry are hand-made and/or unique in some distinctive way. Cottage industry products are often identified with an area or even with a specific family. Often a cottage industry is run by members of a single-family, although this is not necessarily the case. A cottage industry can also be a loosely or informally organized group with each member working out of their own home. While there is often a specialized interest in the non-mass-produced products of a cottage industry, a cottage industry often faces difficult challenges in distributing its products.


Examples of Cottage Industry in a sentence


You may find that you are in a cottage industry and will need to find new ways to work around the problems.

The cottage industry in the developing country was unexpected, however, our flexible and resourceful team was happy to adapt.

After my brother lost his job, his wife decided to take advantage of the internet and began to develop her own cottage industry selling quilts on Etsy out of her home.


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Definition Sources


Definitions for Cottage Industry are sourced/syndicated and enhanced from:

  • A Dictionary of Economics (Oxford Quick Reference)
  • Oxford Dictionary Of Accounting
  • Oxford Dictionary Of Business & Management

This glossary post was last updated: 21st November, 2021 | 0 Views.