Cottage industries, Small Businesses, and Linkage industries

0.0(0)
studied byStudied by 0 people
learnLearn
examPractice Test
spaced repetitionSpaced Repetition
heart puzzleMatch
flashcardsFlashcards
Card Sorting

1/13

encourage image

There's no tags or description

Looks like no tags are added yet.

Study Analytics
Name
Mastery
Learn
Test
Matching
Spaced

No study sessions yet.

14 Terms

1
New cards

Cottage Industries

Where production happens at home, using natural resources and little to no equipment.

2
New cards

Characteristics of Cottage Industries

  • Labour often involves family members

  • Local materials are used,

  • generally small-scale with growth potential.

3
New cards

Advantages of Cottage Industries

  • Provides employment

  • low labour costs

  • linkage to other industries

  • minimal location costs.

4
New cards

Disadvantages of Cottage Industries

  • Lack of a ready market

  • scarcity of raw materials

  • Long hours are required from owners.

5
New cards

Small Business

A privately owned entity that generates less annual profit compared to larger corporations.

6
New cards

Characteristics of Small Businesses

  • Have their own location

  • employ a maximum of 10 paid employees

  • have fewer assets than large corporations.

7
New cards

Functions of Small Businesses

  • Create employment

  • provide services that large corporations cannot

  • cater to niche markets.

8
New cards

Niche Market

A market offering a particular good or service to a specific group of people.

9
New cards

Challenges for Small Businesses

  • Face competition from larger companies

  • finding capital

  • Unlimited liability.

10
New cards

Linkage Industries

When one industry depends on another's output for its own production.

11
New cards

Backwards Linkage

Occurs when one industry relies on another's output for raw materials.

12
New cards

Forward Linkage

When the output of one industry is used as input for another industry.

13
New cards

Benefits of Linkage Industries

  • Encourages large-scale production,

  • Generates foreign exchange and promotes economic growth.

  • Creates job opportunities.

14
New cards

Challenges of Industry Linkages

  • Need for significant capital investment

  • Limited access to foreign markets.