A cottage industry refers to small-scale production of goods, typically conducted in homes rather than factories. This type of industry often involves family members or local artisans who create products like textiles, crafts, or food items. The work is usually done on a part-time basis, allowing individuals to balance production with other responsibilities. Cottage industries can play a significant role in local economies by providing income and preserving traditional skills. They often rely on local resources and markets, making them sustainable and community-oriented. Examples include handmade pottery, homemade jams, and handcrafted furniture.