The cottage industry is an industry which is run either as whole-time or part-time occupation with full or partial help of the family members. The following are the characteristics of cottage and rural industry.
- They are run by the members of the family (they do not employ labour)
- They are mainly run by artisans at their homes.
- Requires very small investment
- They often cater to the needs of surrounding localities
- They use the Machines very rarely.
- Usually traditional items like mats, shoes, pottery are made in these units. Other examples are the units where khadi and handicraft products are produced.