Cottage industry is a generic term for any type of home–based production business. The term is specifically used to describe industries of a craft nature e.g. basket weaving, carving and pottery. This type of home–based business is not difficult to start as it requires little capital to purchase tools and employs family members. These small scale businesses are important to an economy. They utilize local raw materials such as clay for pottery, wood for carving and straw for baskets. They earn foreign exchange from selling to tourist at craft markets and fairs.
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