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Cottage Industry (Putting-out system)

Definition

A method of production in which tasks are done by individuals in their rural homes, rather than being done in a centralized factory. This was common during the Industrial Revolution before factories became prevalent.

Analogy

Think of it like a school group project where each student takes a part of the project home to work on. Instead of everyone gathering at one place to do the work together, each person does their part separately at home and then brings it back to put all parts together.

Related terms

Domestic System: A manufacturing system whereby workers produce goods at home with materials supplied by entrepreneurs.

Industrial Revolution: The transition from manual labor and hand-made products to machine-manufactured goods, beginning in England during the 18th century.

Textile Industry: An industry primarily concerned with the design, production and distribution of yarn, cloth and clothing; this was one of the first industries to be affected by industrialization.