The correct answer is letter D.
A cottage industry is a small-scale, manufacturing business often run from someone’s home rather than a purpose-built facility.
Cottage industries are defined by the amount of investment required to start, as well as the number of people employed.
They often face a significant disadvantage when competing with factory-based manufacturers that mass-produce goods.
The first cottage industries were light manufacturing operations in England and the United States engaged in subcontracted garment-making, textiles or sewing, as well as shoemaking and small metal machine parts.
They may have been made up of family members engaged in producing finished goods by utilizing raw materials supplied by a business manager. Many contemporary industries that currently operate in factories were once cottage industries before the Industrial Revolution.
Cottage industries play a significant role in the economies of developing countries.
These economies sometimes lack the capital and financial systems to support larger industries. It may be difficult for smaller firms to grow due to a lack of available capital or because of uncertainty relating to private property and legal rights. Cottage industry is still seen in Asia, India and South America.
