Cottage industries are industries where the products and services are mostly home-based and not factory based. Cottage industries involve production in small scale as they don't use high-tech machines and factory- methods.
However the products and services of cottage industries are mostly unique and not possible to produce in factory.
Cottage industries are very helpful to provide part-time low income employment.
But, many a times, cottage industries face huge disadvantages as they can't face the competition with big scale industries.
However now a days cottage industries are being encouraged.