what is the difference between small scale industries and cottage industries?

i) The location of cottage industries is restricted in villages whereas the small scale industries are mostly located in urban and semi-urban areas.

(ii) Cottage industry being a household industry is mostly run by the members of the family and therefore do not maintain hired labourers. But the small industries are mostly run by hired labourers.

(iii) Cottage industries are producing goods for meeting local requirements whereas small industries are producing goods to meet the demand for the people living in a wider area.

(iv) Cottage industries are investing a very little amount of capital and are working with simple tools. But the small industries are investing a comparatively higher amount of capital (presently the limit has been raised from Rs. 60 lakh to Rs. 3 crore) and are working with machines run by power.

(v) Cottage industries are mostly located in the house of the artisans itself whereas the small scale industrial units are located in the industrial and business complex.

(vi)  Small scale industries - SSI units. by size,capital.product,turnover everything limited to a small reasonable size. Bank loans can also be obtained by submitting project reports.

Cottage Industries - like Khadi Village & Industries - more of the home products - men made products like match box,mats etc,. Easy to operate. Marketability is good since cheap

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Small scale industries- It is undertaking as one in which the investment in fixed assests of plant and machinery does not exceed rupees one crore. Cottage industries- It is also known as rural and traditional industries.In this simple equipment are used and also family labour work for this industries.
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