what is business?

1. SMALL SCALE AND
COTTAGE INDUSTRIES

2. Meaning
 A cottage industries are located in urban
centers and produce goods with partially or
wholly mechanized equipment employing
outside labour, small in size, having little capital
resources and a small labour force.
 Cottage Industries are mainly rural in character
and are generally associated with agriculture
involving operations mostly by hands and are
carried on in the home either as a whole time
or as a part time occupation, primarily with the
help of members of the family.

3.  The Small scale Industries Board define the
SSI “A Unit employing less then 50 persons,
with a capital investment not more than 1 crore
.
 A business firm which is having an investment
not more than 15 lakhs is known as cottage
firm.

4. Importance of Cottage Industry
 Employment Generation
 Use of Local Raw Material
 Balanced Regional Development
Decentralization of Industries
 Mobilization of Capital Developing
Entrepreneurship
 Equitable Distribution of Wealth
 Training Ground for Local Entrepreneur
 Efficient Use of Productive Factors
 Promotion of Exports.

5. Problems of Cottage Industries
 Finance
 Raw Material
 Marketing
 Technology
 Underutilization of Capacity
 Other Problems.