Cottage Industry Case Study

1. Introduction to the cottage industry

Cottage Industry is a particular type of small scale industry, here the creation of a commodity happens in the homes and the work is provided by the member of the house. The machinery or means used for the production of the commodities for most part are the normal ones utilized at homes. The fundamental trademark highlight of Cottage Industry is that it is essentially chaotic in nature and gone under the gathering of small scale industry sort.

The items that are being created by these businesses are essentially consumable ones and are delivered through the usage of the conventional procedures. Cottage Industry particularly began its capacity in the fields of a nation where unemployment alongside under-business

Be that as it may, throughout the years, employment may have expanded in this industry yet the wage of the general population has certainly diminished as the mediators offer low costs to the producers yet charge an overwhelming price from the consumer. In any case, it is not just the middlemen and the dealers. The revised foreign policies, globalization is additionally responsible for the present state of the cottage industry. The handloom weavers are confronting steady rivalry from the power looms. These laborers have given their entire life to skilled sewing and handwork. The ability that they have is quite unmatchable. However, still they are more or less at the same place where they had begun years ago. An industry, giving work to a vast area of our populace is under threat of extinction. With more than 4 million individuals employed with handloom industry, such a condition demonstrates the afflictions which these individuals are confronting. A fascinating point to note is that out of the aggregate individuals occupied with this industry, around 47% are under the poverty line. Likewise, as per the new statistics, the normal yearly family unit pay of these individuals is around Rs 41,068. Cottage Industries in India face lack of capital and substantial amount of work, which drives them to purchase capital-saving methods. Consequently, there is a dire requirement for usage of techniques

Finance is the backbone of an organization without which it cannot function properly. The first problem is adequate funds which are not available and secondly, due to their weak economic base, entrepreneurs, have lower credit worthiness. Neither do they have their own resources nor are others prepared to lend them. Entrepreneurs generally end up borrowing money from money lenders at extremely high rate of interest and this creates bigger financial problems. Another isssue being, that most of the owner 's of cottage industries are not well versed with the excessively complicated process of getting funded, hence it causes a hinderance in their