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Cottage and Small Scale

Industries
zunarah
Discussion Topics
Types of Cottage and Small Industries
Advantages of cottage and small Industries
Problems of Cottage Industries
Government efforts for Cottage Industries.

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PhD, zafarsst@gmail.com
Small Scale Industry
In the National accounts:
the firms employing less than 10 persons are classified as small.
A firm is of small scale if its fixed assets do not exceed Rs.5 million
but it change overtime

Dr. Zafar Iqbal PhD, zafarsst@gmail.com


Cottage Industry
The industry which is carried on in the home of Artisan
Family members are mostly involved
No power utilization

Dr. Zafar Iqbal PhD, zafarsst@gmail.com


Examples
Hand knotted carpets
Wood work
Toy making etc

Dr. Zafar Iqbal PhD, zafarsst@gmail.com


Types of Cottage and Small
Industries
Carpets
Textiles
Embroidery
Jewelry
Ceramics
Woodworks
Metalwork
Advantages of cottage and small
Industries
Makes use of the industrial waste.
Reduces regional disparity.
Little burden on imports.
Less capital and less sophisticated technology is involved.
Good use of local raw material.
Reduces rural-urban migration.
Gainful employment of women.
Source of foreign exchange earning.
Support to large Scale Industry
Employment in rural areas.

Dr. Zafar Iqbal PhD, zafarsst@gmail.com


Problems of Cottage Industries
No Government Interest.
High cost of production.
Lack of standardization and quality control.
Outdated Production Methods are used.
Inefficient Labour.
Electricity and voltage problems.
Technical advice and further training is
Limited.

Dr. Zafar Iqbal PhD, zafarsst@gmail.com


Government efforts for Cottage
Industries.
Following organizations have been made by
government to develop the cottage industries.
1. Pakistan small scale industries corporation
(PSIC)
2. Punjab small scale industries corporation
(PSIC)
3. Sindh small scale industries corporation
(SSIC)
4. Small scale industries Board KPK (SIDB)
5. Directorate of small scale industries
Baluchistan (DSIB)
Dr. Zafar Iqbal PhD, zafarsst@gmail.com

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