What does the concept of "cottage industry" refer to?

The concept of "cottage industry" refers to the small-scale production of goods at home, often involving family members or small groups working together to create products. This type of production emerged prior to the Industrial Revolution when people would manufacture items such as textiles or crafts using simple tools and techniques within their own residences.

Cottage industries were characterized by their flexibility and tailored production, allowing individuals to sell their handmade goods directly to local markets or trade them in nearby towns. This system contrasts sharply with the factory-based mass production that developed during the Industrial Revolution, which centralized manufacturing processes and incorporated mechanization to increase efficiency and output.

Understanding the significance of the cottage industry provides insight into the transition from home-based production to industrialization, highlighting how economic activities evolved over time.