Cottage Industry Definition Cottage industry is a production system that relies on producing goods, or parts of goods, by craftsmen at home, or small workshops, by individuals, small teams or family units instead of large factories. A cottage industry describes the methodology used to produce most goods common throughout much of human history up until the Industrial Revolution. Learn what is a cottage industry, a small-scale family business that produces goods and services using low-technology methods. See examples of cottage industries in different countries and regions, and the challenges they face. Cottage industries are small and informal industries established in cottages or dwelling places. They are small-scale units or manufacturing businesses managed by family members from their homes or establishments usually near their homes. A cottage industry is a type of small-scale manufacturing business characterized by its modest size and operation from a home, typically owned and managed by an individual or a family.

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