An industry in which the production of goods and services is based in homes, as opposed to factories.

Four features of Cottage Industries are:

1) Cottage industry creates employment.

2) Cottage industry is use of mainly local raw materials.

3) In cottage industry little technology is used and is not costly.

4) In cottage industry there is no need for large space.

Yes,

Weaving was a cottage industry.

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The aims of cottage industry is to provide shelter.

A cottage industry is even smaller than a small scale industry. For example weaving at home and selling is a cottage industry while a small scale industry is lesser in technology and capital than a large scale industry but is bigger than a cottage industry.