Putting-out System - Cottage Industry

A cottage industry is an industry—primarily manufacturing—which includes many producers, working from their homes, typically part time. The term originally referred to home workers who were engaged in a task such as sewing, lace-making or household manufacturing. Some industries which are usually operated from large centralized factories were cottage industries before the Industrial Revolution. Business operators would travel around, buying raw materials, delivering them to people who would work on them, and then collecting the finished goods to sell, or typically to ship to another market. One of the factors which allowed the Industrial Revolution to take place in Western Europe was the presence of these business people who had the ability to expand the scale of their operations. Cottage industries were very common in the time when a large proportion of the population was engaged in agriculture, because the farmers (and their families) often had both the time and the desire to earn additional income during the part of the year (winter) when there was little farming work to do.

The use of the term has expanded, and is used to refer to any event which allows a large number of people to work part time. For example, eBay is said to have spawned a cottage industry of people who buy surplus merchandise, and sell it on their auction system.

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Famous quotes related to cottage industry:

    After the planet becomes theirs, many millions of years will have to pass before a beetle particularly loved by God, at the end of its calculations will find written on a sheet of paper in letters of fire that energy is equal to the mass multiplied by the square of the velocity of light. The new kings of the world will live tranquilly for a long time, confining themselves to devouring each other and being parasites among each other on a cottage industry scale.
    Primo Levi (1919–1987)