Cottage industry and the industrial revolution

Posted on April 12, 2013 by mazzmanali

The cottage industry in 18th-century England was a precursor of the factory

http://kids.britannica.com/comptons/art-122191/The-cottage-industry-in-18th-century-England-was-a-precursor

In the Early 18th century British industries were generally small scale and relatively
unsophisticated. Most manufacturing was done in homes or small, rural shops, using hand
tools or simple machines. Most textile production, for example, was centred on small
workshops or in the homes of spinners, weavers and dyers(this was cottage industry) .
Cottage industry involved thousands of individual manufacturers. With different regions specialising in different products, metal production in the Midlands, for example, and coal mining in the North-
East.

When we think of the industrial revolution we think of coal and steam power. We think of factories belching out coal smoke, This was true in the later part of the revolution.
At the beginning of the revolution if you look at Richard Arkwright you will see differently.

In 1768, Richard Arkwright invented the spinning frame that could produce multiple threads at once. The first models were powered by waterwheels so the device came to be first known as the water
frame. It was the first powered, automatic, and continuous textile machine and enabled the move away from small home manufacturing towards factory production. Arkwright built his first textile mill in
Cromford, England in 1774. He used the water out of the lead mines to power his mills as the mine water came out of the ground warm, this meant his mills could run all year round, without the risk of
freezing.

Arkwright found that In Cromford there were not enough local people to supply Arkwright with the workers he needed. After building a large number of cottages close to the factory, he imported workers
from all over Derbyshire , While the women and children worked in his spinning-factory, the men worked at home turning the yarn into cloth. Arkwright played his workers with Spanish doubloons over
stamped with Arkwright’s stamp, these coins were worth 4 and nine pence, this coinage could only be spent at Arkwright’s establishments, which meant all profits came back to Arkwright.

The Mill at Cromford is recognised as an internationally important site of the Industrial Revolution.

t was the world’s first successful cotton spinning mill that was based on water power. Arkwright became known as the ‘Father of the factory system’

http://www.bbc.co.uk/ahistoryoftheworld/objects/RyHIgvgsSeCYGZRl4Ep5RQ

Please watch-(http://www.channel4.com/programmes/walking-through-history/4od#3502923)

Please watch-(http://www.channel4.com/programmes/walking-through-history/4od#3502923)

http://www.belper-research.com/strutts_mills/strutt_history.html

The industrial revolution boomed with the invention of steam power, the steam engine, the railways and canals .

Cottage industries were pushed to the brink of extinction, as mass produced goods were cheaper and faster to produce.

Working conditions in during the revolution were not very good and in some cases were horrific. The living conditions of most workers was no better. Child labour abounded.it was all part and parcel of
the average working class life.
The industrial revolution also brought about the luddite riots, luddites were a group of people who wanted to get rid of the new machinery that was causing unemployment .they destroyed thousands of
machines,

In 1812, a law was passed by the House of Lords, called the Frame-Breaking Act. This act made the breaking of frames punishable by death.

Artist: Peter Jackson

Medium: Watercolour on Board

Size: 11″ x 14″ (270mm x 360mm)

Date: 1965

The luddites did however bring the flaws of the Industrial Revolution to the surface and the government could no longer ignore the opinions of the working class.

http://www.economywatch.com/world-industries/cottage.html

http://www.history.com/topics/industrial-revolution

http://theoryofeconomics.com/uncategorized/the-industrial-revolution/

http://www.historytoday.com/duncan-bythell/cottage-industry-and-factory-system

http://answers.yahoo.com/question/index?qid=20110309163913AAGcSF6

http://www.historywithmrgreen.com/page7/assets/The%20Industrial%20Revolution%20Cottage%20Industry%20and%20the%20Factory%20System.pdf

http://industrialrevolution.sea.ca/causes.html

http://zacharyburbridgetextiles.blogspot.co.uk/2012/12/william-morris-and-industrial-revolution.html

http://www.saburchill.com/history/chapters/IR/008.html

http://kids.britannica.com/comptons/art-122191/The-cottage-industry-in-18th-century-England-was-a-precursor

http://www.industrialheritage.org.uk/index.php?option=com_content&view=article&id=5:essay-about-the-industrial-revolution&catid=5:industrial-heritage&Itemid=15

http://www.nationalarchives.gov.uk/education/politics/g3/

http://www.luddites200.org.uk/theLuddites.htm

Cottage and small scale industries in Pakistan

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In Pakistan, cottage or household industries hold an important position in rural set-up. Most villages are
self-sufficient in the basic necessities of life. They have their own carpenters, cobblers, potters, craftsmen
and cotton weavers. Many families depend on cottage industries for income.
Cottage industries have also gained immense importance in cities and towns. There is a great demand
for hand-woven [carpet]s, embroidered work, brassware, rugsand traditional bangles. These are also
considered important export items and are in good demand in international markets.

Contents

 1Why it is important to encourage cottage and small-scale industries

 2Types of cottage and small-scale industries in Pakistan

o 2.1Carpets
o 2.2Textiles
o 2.3Embroidery
o 2.4Jewelry
o 2.5Ceramics
o 2.6Cutlery
o 2.7Woodwork
o 2.8Sports goods
o 2.9Large scale Surgical instruments
o 2.10Other small-scale industries

 3Problem of cottage and small-scale industries

 4Government policy towards Small-scale and cottage industries

 5References

Why it is important to encourage cottage and small-scale

industries[edit]
There are meagre resources to develop large-scale industries. However, a program for developing and
promoting small-scale industries both in rural and urban areas is more feasible figure 1 shows the
advantages of establishing such industries.
advantages of establishing small-scale cottage industries in Pakistan

1. Cottage and small-scale industries are labor-intensive and provide employment to 80% of the
industrial labor force. This reduces the unemployment and offers opportunities for self-
employment.
2. Traditionally, women are not encouraged to work outside their homes. Cottage or small-scale
industries like carpet-weaving, candle-making and handicrafts can be established in houses and
women can be gainfully employed. This increases the active labor force.
3. These industries also meet the local demands for industrial goods, and save foreign exchange
spent in imports.
4. There is a demand for rugs, carpets, brassware, handicrafts and embroidered work in the
International market. These goods provide 30% of the export receipts of the manufacturing
sector.
5. When people are employed gainfully in villages, the migration of people from rural to urban areas
will reduce. The acute problems of housing, sanitation, education, transport and health will be
reduced in urban areas.
6. Many districts are under-developed. With the expansion of such industries, the regional disparity
in income can be reduced.
7. These industries make effective use of local raw materials which also promotes primary industries
like agriculture and mining.
8. Small-scale industry does not require much capital and high technology. I.T is suited to the
traditional economic set-up.
9. Cottage and small-scale industries do not use much imported material or equipment.
10. The waste of large-scale industries, particularly the cotton, sugar and steel industries, can be
used to make by-products.
11. Home Decoration

Types of cottage and small-scale industries in Pakistan[edit]

There is a web of cottage and books industries. In almost every village, there are a number of such
industries depending upon the size of the village and the demand for the products. The establishment of
such industry is closely related to the availability of raw material traditional skills, climatic conditions and,
in several cases, the local specialization in the organized factory sector.
There is a large variety of handicrafts available in Pakistan. They are not only aesthetically pleasing
items, but they also serve the needs of local people.
Some of these industries produce important export items. Recently exports of non-cotton products have
faced increasing trade barriers as public opinion in industrialized countries has expressed growing
concern about child labor, environmental and health standards. These concerns are being addressed
now.
Carpets[edit]
In the small scale industries, the most important is the Carpet weaving and its center are located almost
all over the Pakistan. It is also significant in economic terms and they make valuable contribution in
exports. Cotton is the raw material required for this industry. They also employ women for the production
of fine hand woven carpets and for the production of wool silk or a mixture of the two, as the carpets are
of great significance which generates equal economic opportunities.It is valuable for gross domestic
product of country.
Textiles[edit]
Textiles are found throughout the country with a variety of design and techniques. The most famous
among them are Khadar, Susi, Khes, Chunri, Boski, Karandi, Shaal, and Ajrak. The designs are
invariably brightly colored with traditional emphasis on blue and red.
Embroidery[edit]
Embroidery has developed to a fine art with distinctive regional designs and patterns.
Jewelry[edit]
Gold and silversmiths are one of the largest communities of craftsmen. Much of the jewelry made and
sold in the cities is intricately fashioned and delicate.
Ceramics[edit]
Clay and terracotta pottery and utensils continue to be of great practical importance. Many of the designs
of urns, pitchers, bowls, jugs, plates, and pots seen today are almost identical to those un covered
at archaeological sites around the country. Distinctive glazed blue tiles are used to decorate many of the
great mosques in Pakistan.
Cutlery[edit]
Wazirabad is the city of cutlery industry in Pakistan . This industry is growing day by day and has share
of 65 million US dollars in Export for 2010. High Quality Damascus Steel ) is manufactured in this city
[1][2][3]

and 95% of world needs are produced here.

Woodwork[edit]
The Swat Valley is perhaps the most famous for its intricately
carved architectural woodwork and furniture, although wood-carving is common throughout the northern
mountains.
Sports goods[edit]
Sports goods earn about 3.7% of our total exports. The main raw material for the sports goods industry
are leather and mulberry wood that are available in Punjab, but also
imported PVC. Football, hockey ball, hockey sticks, cricket bats and rackets are mostly manufactured by
hand. The skilled workers are available in Sialkot and Lahore. In the industry large and medium size
factories contract work out to small-scale and cottage concerns.The local sports goods manufacturing
industry is one of the major source of foreign exchange earnings of Pakistan. It is centralised in and
around the city of Sialkot, where it has flourished as a cottage industry with most of its production by
generations of skilled craftsmen. At the time of independence, this industry was in an infant stage with a
nominal export of Rs. 0.82 million. The Government took immediate steps to develop this industry by
providing loans and subsidies to the manufacturers and arrangements were made to market the
manufactured goods. Since then, the industry has flourished locally and enjoys good reputation in the
international markets as well.mostly these goods are provided to fatima syed productions
Production At present, there are more than 2000 units, mostly on small scale in operation with an
installed capacity of Rs. 20 billion per annum. The units are operating on single-shift basis.
Pakistan produces a wide range of sports goods, accessories, games and athletic equipment generally
following the British, American and German specifications.
The Government is also enforcing on a compulsory basis, minimum quality standards for sports goods
manufacture. The Pakistan Standards Institute, a government agency, has devised specific standards for
different types of sports goods. The important items being produced are tennis rackets, hockey sticks,
hokey balls, polo sticks, cricket bats and balls, footballs, (complete) and numerous goods used in both in-
door as well out-door games.
At present, Pakistan's sports goods enjoy a world-wide recognition mainly because of the care that goes
into their designing, manufacturing and selecting of the finest raw materials. The basic raw materials
required for the production of sports goods, are leather, wood, glue, nylon guts, rubber and chemicals.
Out of these, leather and various kinds of wood are abundantly available in Pakistan. The industry
annually utilises materials worth Rs. 8 billion including imported raw material.
Exports This industry is one of the major foreign exchange earners for Pakistan and is, therefore,
receiving full government backing in its development. It is estimated that more than 75 per cent of the
total production is exported every year.
In fact, the export demand has acted as the main stimulus for the rapid growth of this industry because of
care that goes into designing, manufacturing and selecting of raw materials. There are two factors which
are responsible of this.
(i) Low price as compared to general price level
(ii) Durability plus good workmanship
Export of sports goods increased from $136 million in 1990-91 to $384 million in 1997-98. Showing an
average increase of 23 per cent annum as evident from table-1. The export market for sports goods is
fairly diversified. More and more countries are being added to the list of their imports. In 1990-91 there
were in all 50 countries importing these good from Pakistan. Thereafter, the list has continuously
expanded so that during the 1992-98 period, Pakistan exported sports goods to 90 countries. However,
the principal importing countries are Germany, USA, UK, France and Italy. Others were Spain,
Netherlands, Hong Kong, Denmark, Canada, Belgium, Dubai and Chile. Country-wise export of sports
goods is given in table-2.
In the international market, India, Japan, Taiwan and South Korea are the main competitors of Pakistan.
They are supplying their products at lower prices. While India has an advantage of cheap labour and raw
material Taiwan, Japan, and South Korea have semi-automotive and mechanised units and are always
engaged in introducing cheap sports goods such as metal rackets and cricket bats etc.
In order to encourage the export of sports goods, the Government has taken many positive steps and
has offered various incentives. Customs duty, sales tax and excise duty rebates on f.o.b. value of
exported various types of sports goods are available.
Another incentive is that import of restricted and tanned raw materials are also allowed on cash licenses
against export of sports goods.
This industry is facing severe competition from Taiwan, India and South Korea. Although the Government
has provided various incentives and facilities to modernise and mechanise the industry, the opportunity
has not been availed. The improvement in quality and consequently in exports earnings has been due to
the improved availability for leather for manufacture of footballs which constitutes about 75 per cent of the
total exports. Keeping in view the trends during 1991-98 about 23 per cent growth rate, improved quality
available and competition faced in the international markets the future demand is expected to growth the
rate of 15 per cent during 1999-2000. [4]
Large scale Surgical instruments[edit]
Sialkot and Lahore are also noted for the manufacture and export of surgical instruments. The most
important raw material is stainless steel which has to be imported. In this industry, also, medium scale
factories contract work out to small-scale and cottage concerns. Also like the sports goods industry, most
of the output is exported.Sialkot is the biggest surgical maker in the world and India, America, Australia
and many other countries are importers of surgical instruments from this city. Sialkot has the major role in
making surgical instruments
Other small-scale industries[edit]
Other small-scale industries include electric fans, cutlery and general engineering.
″small scale industries are those which generally employed less than workers and they run with or
without electric powers, in or outside the home but there assets do not exceed rs.2 million.for example;
carpet industry, poultry forming, hand and power loom industry, manufacturing of sports and leather
goods, toy industry, agriculture implements etc.″

Problem of cottage and small-scale industries[edit]

Cottage and small-scale industries contribution to the GDP is only 5%. There are certain problems
associated with these industries that are mentioned below.

 Profits are limited and they are mostly spent on the daily expenses of the owners. They do not have
extra capital for expansion of these industrial units.
 Economies of scale are not available so production cost is higher. Goods produced in small-scale
industries cannot compete in open market if the same goods are manufactured on a large scale.
 The wholesaler, who takes most of the profits, exploits the owners of the small-scale industry. In
some cases goods are sold to wholesalers at cost price, which discourages the owners and they
reduce the quality and quantity the produced.
 In rural areas, where the electricity is not provided, small-scale industries are difficult to set up. Even
the great fluctuation in voltage and power break-downs cause damage to the electric motors. The
commercial rates of electricity have also increased significantly which hinders the growth.
 The craftsman and artisans learns their skills and production methods from their elders. The
provision of technical advice and further training is limited.

Government policy towards Small-scale and cottage industries[edit]

The government is fully aware of the potential of cottage and small-scale industries for industrial
development. The following organizations have been established to develop this sector of economy.

 Pakistan Small Industries Corporation (PSIC)

 Punjab Small Industries Corporation (PSIC)
 Sindh Small Industries Corporation (SSIC)
 The Small Industries Development Board NWFP (SIDB)
 The Directorate of Small Industries Baluchistan (DSIB)
The above organizations are taking the following measures:

 Establishment of industrial estates.

 Providing marketing facilities.
 Setting up of technical service centers.
 Establishing handicraft development centers and carpet centers.
 Providing per-investment counseling and guidance to newcomers.
 Providing local and foreign loans to small industry owners on easy installments.
Definition of Cottage Industry
Posted on March 6, 2012by Erineus
Section 11 of R.A. No. 3470, approved on June 16, 1962, defined cottage industry as an “economic activity in a small scale which is carried on mainly in the homes or in
other places for profit and which is mainly done with the help of the members of the family.” Among the activities considered as a cottage industry is “metalcraft such as
making of jewelries, knives, boloes (sic), scissors, razors, silverwares and brassworks (sic).”[45]

The same law required persons, corporations, partnerships, or associations that wished to avail of the benefits of the law to register with the NACIDA.[46]

In 1968, R.A. No. 5326 amended certain sections of R.A. No. 3470. In particular, Section 11 was amended to read:

SEC. 11. Definition. – The term ‘cottage industry’ as used in this Act shall mean an economic activity in a small scale carried on mainly in the homes or in other places for
profit and mainly done with the help of the members of the family with capitalization not exceeding fifteen thousand pesos. The term shall also include economic activities
carried on by students of public and private schools, within school premises, as a cooperative effort, under supervision of a teacher or other person approved by and acting
under the supervision and control of school authorities, either as part of or in addition to ordinary vocational training, provided all profits shall accrue to the students
working therein. it shall include the following: x x x (5) metal craft such as making of jewelries, knives, boloes (sic), scissors, razors, silverwares and brassworks (sic); x x x
All cottage industries shall be owned and operated by Filipino citizens, or by a corporation, partnership or cooperative, at least seventy-five per cent of the capital or
investment of which is owned by Filipino citizens. All members of its Board of Directors shall be Filipino citizens.

The word capitalization as used in this section shall mean the total current assets and fixed assets, excluding the value of the land and building leased, rented and/or used
at least six months of each year. For purpose of this Act, any and all branches, agencies, outlets or divisions of a licensed cottage industry shall be collated to determine the
capitalization thereof.

R.A. No. 3470 was further amended on October 22, 1975, by Presidential Decree (P.D.) No. 817. The first sentence of Section 11 was amended, to read:

The term “cottage industry” as used in this Act shall mean an economic activity carried on in the homes or in other places for profit, with a capitalization of not
exceeding P100,000 at the time of registration.

In 1981, then President Ferdinand Marcos issued P.D. No. 1788, the Cottage Industries Development Decree of 1981, amending and consolidating R.A. Nos. 3470 and
5326, P.D. No. 817, and other related Laws, Decrees, Executive Orders, Letters of Instructions, and Acts concerning the NACIDA. Section 10 of P.D. No. 1788 states:

Section 10. Cottage Industry – The term “cottage industry” shall mean a modest economic activity for profit using primarily indigenous raw materials in the production of
various articles of the country. Provided, however, that all cottage industries shall be owned and operated by Filipino citizens, or by corporations, partnerships, or
cooperatives at least seventy-five percent (75%) of the capital investment of which shall be owned by Filipino citizens. Provided, further, that the total assets of which shall
not exceed one hundred thousand pesos (P100,000.00) at the time of registration with the NACIDA. Provided, finally that the maximum total assets allowable for cottage
industries for purposes of registration may be modified and/or increased accordingly by the NACIDA Board subject to the approval of the President of the Republic of the
Philippines.

For facility of implementation, coordination and statistical gathering, cottage industries shall be classified as follows:

xxxx

a) Metalcraft Industry – That sector using metals or its alloys as principal raw material component in producing articles such as brasswares, cutlery items, fabricated
tools, implements and equipment and other items requiring a certain degree of craftsmanship in the making thereof including the making of jewelry items involving the
use metals and/or its alloys in combination with semiprecious or artificial stones.
Executive Order (E.O.) No. 917, issued on October 15, 1983, amended the definition of cottage industry by increasing the capitalization requirement to a maximum
of P250,000.00, which amount may be modified or increased accordingly, subject to the approval of the President.[47]

In 1986, the National Economic Development Authority (NEDA) redefined cottage, small and medium scale industries. Considered as cottage industries were enterprises,
excluding agriculture, with total assets after financing of over P500,000.00 but less than P5 million.[48]

When Corazon Aquino became President, she issued E.O. No. 133, reorganizing the Department of Trade and Industry (DTI). Section 18 thereof provided that the NACIDA
was reorganized into the CITC, and its functions, other than technology development and training, were transferred to the Bureau of Small and Medium Business
Development and relevant line operating units of the DTI.

In 1990, Congress enacted R.A. No. 6977, the Magna Carta for Small Enterprises. The capitalization for a cottage enterprise was changed, viz.:

SEC. 3. Small and Medium Enterprises as Beneficiaries. – “Small and medium enterprise” shall be defined as any business activity or enterprise engaged in industry,
agribusiness and/or services, whether single proprietorship, cooperative, partnership or corporation whose total assets, inclusive of those arising from loans but exclusive
of the land on which the particular business entity’s office, plant, and equipment are situated, must have value falling under the following categories:
micro : less than P50,000
cottage : P50,001 – P500,000
small : P500,001 – P5,000,000
medium: P5,000,001 – P20,000,000

In a generic sense, all enterprises with total assets of Five million pesos (P5,000,000) and below shall be called small enterprises.

R.A. No. 6977 was amended by R.A. No. 8289 in 1998. Amending Section 1 of R.A. No. 6977, the term cottage industry or cottage enterprise was completely eliminated:

SEC. 3. Small and Medium Enterprise as Beneficiaries. – “Small and Medium Enterprise” shall be defined as any business activity or enterprise engaged in
industry, agribusiness and/or services, whether single proprietorship, cooperative, partnership or corporation whose total assets, inclusive of those arising from loans but
exclusive of the land on which the particular business entity’s office, plant, and equipment are situated, must have value falling under the following categories:

micro : less than P1,500,001

small : P1,500,001 – P15,000,000
medium: P15,000,001 – P60,000,00

The above definitions shall be subject to review and adjustment by the said Council motu proprio or upon recommendation of sectoral organization(s) taking into account
inflation and other economic indicators. The Council may use as variables the number of employees, equity capital and asset size.
http://sc.judiciary.gov.ph/jurisprudence/2011/march2011/171427.htm

https://bataspinoy.wordpress.com/2012/03/06/definition-of-cottage-industry/

Carpet industry
weaving industry

Beads articles
Philippine ceramics arts and crafts

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