Sponsor Area

Secondary Activities

Question
CBSEENGE12024058

Distinguish between cottage industry and small scale industry.

Solution

Cottage Industry

Small Scale Industry

1.

These industries are run by craftsmen with the help of their family members, in their home.

1.

These industries are the developed form of cottage industries. They run by a group of skilled craftsmen.

2.

They utilise local raw materials.

2.

Raw material if not available locally, it is obtained from outside.

3.

The handmade tools and handmade machines are used.

3.

They use small machines which are run by electricity.

4.

The products are mainly for local market.

4.

Its products are sold in the market through traders.

5.

The scale of operation is small.

5.

The expansion in the scale of production in the household industry provide base for small scale industry.

6.

In rural areas, some farmers produce goods like ropes, baskets and clothes during the slack period. The potters, carpenters, blacksmiths, etc. are engaged in cottage industries.

6.

Paper goods, toys, earthenwares, furniture, electrical goods, utensils etc. are examples of small scale industry.