Learn what cottage industries are, how they operate, and why they are important for rural development. Explore examples of cottage industries from India, Mexico, and other countries, and their challenges and opportunities. Learn what is a cottage industry, a small-scale family business that produces goods and services using low-technology methods. See examples of cottage industries in different countries and regions, and the challenges they face. A cottage industry is a type of small-scale manufacturing business characterized by its modest size and operation from a home, typically owned and managed by an individual or a family. A cottage industry is a small-scale manufacturing businesses run by individuals or family members at their homes with minimal capital.