What characterizes a cottage industry?

A cottage industry is defined by the production and sale of goods at home, often involving small-scale operations where individuals or families create goods using their own resources and skills. This characteristic sets cottage industries apart from larger-scale manufacturing methods. Typically, these industries rely on handcrafted or artisanal techniques and local sales, providing flexibility and personalization that larger businesses may lack.

Unlike large-scale manufacturing facilities, a cottage industry does not require expansive warehouses or assembly lines. It emphasizes localized, often bespoke production methods rather than high-volume operations, which means fewer goods are produced but often with a higher degree of craftsmanship. Moreover, automated mass production does not apply here since cottage industries usually utilize manual labor and smaller equipment rather than machinery designed for large-scale output. Thus, the unique qualities of operating from home and the intimate scale of production are fundamental to defining a cottage industry.