We refer to our businesses here as “home businesses” or “home-based”–whatever happened to the term “cottage industry” that used to be so prevalent? A cottage industry always meant a business or industry where the products or services were created and sold from home. Now we have micro-businesses, but the term “cottage industry” seems to have disappeared from the vernacular. I would like to know why?
There used to be some romance and mythology around “cottage industry”–especially here in America where it has always been entirely plausible that a person could start a company in her garage or basement that would evolve into something huge (Microsoft, for example). It seems that this is happening less and less, since it is so difficult to compete with large corporations and a global market–but I would argue that home-based businesses are as popular and productive as ever (if not more so).
Of course, the fact is, home-based businesses are a large part of many economies–particularly those in developing countries where the making of products and the providing of services is very much done on a small-scale, individual, and family basis. Here in the United States, it has become less of a family affair, but there are still plenty of opportunities for start-up businesses that are home-based.
So, I would be interested to find out how the term “cottage industry” to describe what it is we entrepreneurs are trying to do has fallen so out of fashion and the other terms–home, home-based, and micro-business have taken its place? If there is anyone out there who has any theories, it would be fun to hear them. As much as I like the way “micro-business” sounds much more professional, I can see where having a cottage industry can also have its appeal. Any ideas or comments?
See Also: Understanding Micro-business
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