The following are a few important features of cottage industries.
Ownership: These are rural-based industries owned and operated by individuals who invest their private resources in these units.
Level of capital and production techniques: The amount of capital is very small, and the production techniques are highly labour-intensive and indigenous.
Employment: These industries generally do not hire labour but employ the owners family members.
Talent and skills: Usually, the talent and the skills required for cottage industries are found restricted to particular families. The skills are passed on from one generation to the next. For instance, the art of pottery remains restricted to potter families.
Market: Although the production is primarily carried out for self-consumption, a portion of the output is sold in the local market as well.