Difference between Small Scale Industry and Cottage Industry

There is some basic deference between small scale industry and cottage industry. Let’s know the key differences.

Small and cottage industries are very important in Bangladesh. Moreover, they have future possibilities if we can provide them with financial support according to proper planning. By providing proper advice, guidance, and support to the producers, they can market the products themselves and export them abroad. This industry can earn a lot of foreign exchange.


Today I will tell you about some basic differences between small-scale industry and cottage industry. Which many of us don’t know.

Small-Scale Industries: Small-scale industries are established on a sole proprietorship, partnership, or cooperative basis with less capital and fewer employees. In these industrial establishments, the cost of land and other fixed assets like factories and buildings including replacement costs is not more than 1.50 crore rupees.

Cottage Industry: The industry which takes place in a small house or small shop is called the cottage industry. These products are produced manually by the labor of family members in a family environment without the help of any electricity or heavy machinery.


Difference Between Small and Cottage Industries

SubjectSmall IndustryCottage Industry
DefinitionIndustries in which the value or replacement cost of other fixed assets excluding land and factory buildings does not exceed 1.50 crore rupees are called small-scale industries.Cottage industries engaged in full or part-time production or service activities by family members are called cottage industries.
FeatureA small-scale industry is an industry that is established on a sole proprietorship, partnership, or cooperative basis with little capital and a small number of employees.A cottage industry is developed in a family environment by family members.
InvestmentThe amount of investment in small-scale industries is not more than 10 crore rupeesThe amount of investment in the cottage industry is not more than five lakh rupees.
EnvironmentSmall-scale industries are not family oriented.On the other hand, the cottage industry is a family-based industry and the entrepreneur himself is the artisan.
ProductionSmall-scale industries fall at the level of large production units.Cottage industries are called part-time production units.

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