While both produce items for consumption, commercial and cottage industries are two primary types of industries that are essentially the opposite of one another. The basic differences between cottage and commercial industries lie in both the site of production and the general ways in which products are made.
Commercial industries are usually factory-based and employ many workers. Each worker typically participates in one small step of the manufacturing process, rather than making an entire product from start to finish. The purpose of a commercial industry is widespread production: to sell as many products as possible to consumers. To do so, commercial industries typically use new and more cost-effective technologies than cottage industries.
Unlike commercial industries, which tend to be large in scale, cottage industries tend to be small in scale. Cottage industries are often based out of a single home, and they may have only one or two employees. In cottage industries, a worker often makes a product from start to finish. Examples of cottage industries include homemade textiles and jewelry. Cottage industries usually use production techniques that are more traditional and less cost-effective. As a result, cottage industry products are often more expensive.
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