Industries based on Size

Concept First

The size of an industry is determined by three factors: the amount of capital invested, the number of workers employed, and the volume of production. Based on these criteria, industries are classified into three categories: household (or cottage) industries, small-scale industries, and large-scale industries.

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Household Industries or Cottage Manufacturing

This is the smallest manufacturing unit. Artisans work in their own homes, using local raw materials and simple tools. They are helped by family members or part-time labour. The finished goods may be consumed within the household, sold in local village markets, or exchanged through barter.

Capital and transportation have little influence here because this type of manufacturing has low commercial significance. Most tools are devised locally. Common everyday products include:

• Foodstuffs, fabrics, mats, containers, tools, furniture, shoes
• Figurines from wood and forest products
• Shoes, thongs, and other articles from leather
• Pottery and bricks from clay and stones
• Jewellery (gold, silver, bronze) made by goldsmiths
• Artefacts and crafts from bamboo and locally available wood

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Small-Scale Manufacturing

Small-scale manufacturing differs from household industries in two key ways: its production techniques and its place of manufacture. Production happens in a workshop outside the home or cottage of the producer.

This type of manufacturing uses:

• Local raw materials
• Simple power-driven machines
• Semi-skilled labour

It provides employment and raises local purchasing power. For this reason, countries like India, China, Indonesia, and Brazil have developed labour-intensive small-scale manufacturing to provide jobs for their populations.

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Large-Scale Manufacturing

Large-scale manufacturing involves:

• A large market
• Various raw materials
• Enormous energy
• Specialised workers
• Advanced technology
• Assembly-line mass production
• Large capital …