Question

Difference between small scale industries and cottage industries

Answer 1

Cottage industries are mostly run by family members therefore they do not require hired labors.

Whereas the small scale industries are mostly run by the hired laborers.

Cottage industry requires only a small amount of capital investment whereas small scale industries require a capital investment ranging in between Rs. 60 lakh to Rs. 3 Cr.

Answer 2

Explanation:

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• (iii) Cottage industries are producing goods for meeting local requirements whereas small industries are producing goods to meet the demand for the people living in a wider area.

• (iv) Cottage industries are investing a very little amount of capital and are working with simple tools.