What is cottage Industry and its advantages

Cottage industry

COTTAGE INDUSTRY

The cottage industry is an industry where products and services are home base rather than factory you have to do the creation of skills.

ADVANTAGES OF THE COTTAGE INDUSTRIES

1. Only minimum investment is needed to start such industries.

2. The goods and services sold in these industries tend to be inexpensive because this production avoids many costs, such as the rental of offices or factory premises and storage costs. Lower production costs can be passed on to consumers in the form of lower prices.

3. Handicraft production is flexible, allowing people to work at their own pace and, same time, to do household chores.

4. The nature of these industries allows family members to provide assistance at little or no cost to cottage contractors.

5. The craft industry is a possible response to the problem of unemployment which prevails in many Caribbean territories, as it provides a source of self-employment and income for many.

6. The craft industries (in particular those involved in the craft industry) have contributed to supplementing and developing tourism.

7. These industries help reduce the importation of many items and are a means of earning foreign exchange, either through direct export, or indirectly when goods and services are sold to tourists.

8. The incomes of small producers often supplement the regular income and add to the national income and the circular circulation of income in the country.

9. Many cottage industries turn into large enterprises and become large producers, where they can realize economies of scale, which are advantages or advantages of large-scale production.

10. The diversified production of the cottage industries has given consumers a wider choice while avoiding mass production, which is “unpleasant” for consumers, most of whom like the personal touch.