A business or manufacturing activity carried on at people homes is called cottage industry. Cottage Industry shops allocated at Connaught place, New Delhi are the example of it. It was originally referred to home workers who were engaged in a work such as sewing, lace-making, wall hangings, electronics, or household manufacturing. It includes many producers, working from their homes, typically part-time.


  • They are organised by people with private resources and raw materials
  • They usually use locally available man powers to get the work done
  • They make use of simple types of equipment
  • The capital investment is minimal


These are primary, secondary, and tertiary.

  • Primary industry
    • Primary industry involves getting raw materials e.g. mining, farming and fishing.
  • Secondary industry
    • Secondary industry involves manufacturing e.g. making cars and steel.
  • Tertiary industry
    • Tertiary industries provide a service e.g. teaching and nursing.


A major benefit of cottage industries is that they allow people to work from their homes. Women have benefited the most because they can work from home while still tending to their families. Many cottage businesses include the entire family in their operations.


  • Lack of Parking and Distribution
  • Lack of Health and Safety
  • Lack of Food Laws
  • Lack of Zoning Requirements

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