Importance of cottage industry

cottage industries

1. Importances of Cottage and Small Scale Industries There is a shortage of capital and technical skill in subcontinental . It is not possible to establish the heavy industries. While it is very easy to increase the number of small scale industries. Following are the main advantages of small scale industry in subcontinental : 1.Increase in Industrial Products There is a shortage of manufactured goods in our area. We spend a lot of foreign exchange on the import of these goods every year. So we should increase the small scale and cottage industry to remove the shortage of these goods.

2. 2. Increase in Employment The rate of unemployment is increasing day by day. To control unemployment it is necessary that we should increase the small scale industries because these are labour intensive. Our farmer can also easily work in small scale scale industry. It is not possible to provide Govt. jobs to all the unemployed people. It may also increase the self employment . 3. Increase in Foreign Exchange Earnings The various kinds of goods like carpets and sports sold in the international market. We earn a lot of foreign exchange by exporting these goods.

3. 4 . Use of Industrial waste :- The waste of large scale industries like cotton and steel can be used by the small scale industry. In this way we can save a lot of capital. 5 . Provides Employment to Women :- Our women is engaged in the cottage and small scale industry and increasing the production. Because in our society women can not work with other men in the factories. We should increase the number of cottage industries to make the female sector a real asset of the nation.

4. 6. Increase in The Income :- Increase in the production of goods on small scale increase the income of the people. The rise in income improves the standard of living. In rural areas there is great need of small scale industry. 7. Cheaper Production :- The small scale industry is labour intensive while labour is cheap in subcontinental , so the production of small scale industry is cheaper. Due to low prices people purchase more goods and market expands. 8. Proper Distribution of Wealth :- The small scale industry increases the income of the people and reduces the gap between rich and poor. We can reduce the poverty by expanding the small scale industry.

5. 9. Establishment With Small Capital :- We can establish these industries with small capital. In subcontinental most of the people are poor, so they can start the production with small capital. 10. Development of Backward Areas :- We can develop backward areas by establishing the small scale industry in these areas. It will remove poverty from backward areas. 11. Reduction of Population Pressure :- The development of small scale industry reduces the pressure of population on land and increases the income of the people. 12. Reduction in Migration :- The unemployed labour force is migrating to the other countries. If we expand the small scale industry, it can serve the nation instead of serving the other countries.

6. Women Entrepreneurs in Bangladesh Rural women are involved in cattle and poultry rearing, rice husking, spice making, imitation ornament trading, pickle making and other micro businesses. Urban women are mostly involved in block printing and boutiques, bakery and fast food, doll making, tailoring, fabrics paint, interior decoration, etc. Women entrepreneurs prefer to start their business in sectors where female employment is concentrated. The choice of the sector is limited by various factors such as resource constraint, female aversion to risk-taking, etc., which forces them to engage in activities with low entry barriers and low financial risks such as food processing and or clothing and textile sector. Hence female businesses have smaller employment and sales than male business. Majority are micro and small enterprises, employing less than 10 persons. Most of them are sole proprietors. Participation of women as entrepreneurs has also improved their quality of life and their households. They serve as a role model for young generation for self-employment opportunities.