{"id":1827,"date":"2017-05-03T18:39:29","date_gmt":"2017-05-03T18:39:29","guid":{"rendered":"https:\/\/crunchlearning.com\/website_ec2cbfb0\/?p=1827"},"modified":"2026-03-03T07:58:05","modified_gmt":"2026-03-03T07:58:05","slug":"cottage-industry-vs-factory-system","status":"publish","type":"post","link":"https:\/\/crunchlearning.com\/website_ec2cbfb0\/cottage-industry-vs-factory-system\/","title":{"rendered":"Cottage Industry vs. Factory System: A Detailed Comparison"},"content":{"rendered":"\n<p>The cottage industry vs. factory system was a central component of the <a href=\"https:\/\/crunchlearning.com\/website_ec2cbfb0\/category\/industrial-revolution\/\" data-type=\"category\" data-id=\"11\">Industrial Revolution<\/a>. The Industrial Revolution, which <a href=\"https:\/\/crunchlearning.com\/website_ec2cbfb0\/causes-of-the-industrial-revolution\/\" data-type=\"post\" data-id=\"1818\">began in the late 18th century<\/a>, marked a major turning point in history, transforming economies powered by manual labor into ones driven by machinery. It <a href=\"https:\/\/crunchlearning.com\/website_ec2cbfb0\/why-was-britain-the-first-country-to-industrialize\/\" data-type=\"post\" data-id=\"1882\">originated in Great Britain<\/a> and spread across the world, fundamentally altering the social, economic, and cultural fabric of societies. This era saw the rise of factories, significant advancements in transportation such as the <a href=\"https:\/\/crunchlearning.com\/website_ec2cbfb0\/invention-of-the-steam-engine\/\" data-type=\"post\" data-id=\"1968\">steam engine<\/a>, and the mass production of goods, which greatly increased the availability of consumer products. As such, a central component of the Industrial Revolution was the transformation from the cottage industry to the factory system. This article details the history and significance of both the cottage industry and the factory system and explains the differences between both.<\/p>\n\n\n\n<figure class=\"wp-block-embed is-type-video is-provider-youtube wp-block-embed-youtube wp-embed-aspect-16-9 wp-has-aspect-ratio\"><div class=\"wp-block-embed__wrapper\">\n<iframe title=\"Cottage Industry and Factory System in the Industrial Revolution - History Crunch Investigates\" width=\"800\" height=\"450\" src=\"https:\/\/www.youtube.com\/embed\/EpcH0bOrTpo?feature=oembed\" frameborder=\"0\" allow=\"accelerometer; autoplay; clipboard-write; encrypted-media; gyroscope; picture-in-picture; web-share\" referrerpolicy=\"strict-origin-when-cross-origin\" allowfullscreen><\/iframe>\n<\/div><\/figure>\n\n\n\n<div style=\"height:50px\" aria-hidden=\"true\" class=\"wp-block-spacer\"><\/div>\n\n\n\n<h2 class=\"wp-block-heading\">WHAT IS THE COTTAGE INDUSTRY IN THE INDUSTRIAL REVOLUTION?<\/h2>\n\n\n\n<p>One of the central\u00a0<a href=\"https:\/\/crunchlearning.com\/website_ec2cbfb0\/impacts-of-the-industrial-revolution\/\" data-type=\"post\" data-id=\"1846\">impacts of the Industrial Revolution<\/a>\u00a0was the transformation of society from rural communities based upon agriculture to industrial urban communities based on the factory system.\u00a0 Before the start of the\u00a0<a href=\"https:\/\/crunchlearning.com\/website_ec2cbfb0\/industrial-revolution-overview\/\" data-type=\"post\" data-id=\"1849\">Industrial Revolution<\/a>, which began in the 1700s, the production of goods was done on a very small scale.\u00a0 Historians refer to this method of production as the \u2018<a href=\"https:\/\/crunchlearning.com\/website_ec2cbfb0\/cottage-industry-in-the-industrial-revolution\/\" data-type=\"post\" data-id=\"2000\">cottage industry<\/a>\u2019.\u00a0 Simply put, the cottage industry refers to a period of time in which goods for sale were produced on a very small scale, usually in a home.\u00a0 In this system, people produced goods, such as wool, in their homes or on their own farms and then sold it to local communities since long distance transportation was uncommon.\u00a0 This method of production was slow and inefficient and struggled to keep pace with the growing demand caused by the increased population.\u00a0 As a result, entrepreneurs and inventors sought ways to increase production, which ultimately led to the creation of the factory system.<\/p>\n\n\n\n<figure class=\"wp-block-image size-large\"><img fetchpriority=\"high\" decoding=\"async\" width=\"1024\" height=\"576\" src=\"https:\/\/crunchlearning.com\/website_ec2cbfb0\/wp-content\/uploads\/2026\/02\/Cottage-Industry-in-the-Industrial-Revolution-1024x576.jpg\" alt=\"Cottage Industry in the Industrial Revolution\" class=\"wp-image-5926\" srcset=\"https:\/\/crunchlearning.com\/website_ec2cbfb0\/wp-content\/uploads\/2026\/02\/Cottage-Industry-in-the-Industrial-Revolution-1024x576.jpg 1024w, https:\/\/crunchlearning.com\/website_ec2cbfb0\/wp-content\/uploads\/2026\/02\/Cottage-Industry-in-the-Industrial-Revolution-300x169.jpg 300w, https:\/\/crunchlearning.com\/website_ec2cbfb0\/wp-content\/uploads\/2026\/02\/Cottage-Industry-in-the-Industrial-Revolution-768x432.jpg 768w, https:\/\/crunchlearning.com\/website_ec2cbfb0\/wp-content\/uploads\/2026\/02\/Cottage-Industry-in-the-Industrial-Revolution.jpg 1280w\" sizes=\"(max-width: 1024px) 100vw, 1024px\" \/><figcaption class=\"wp-element-caption\">The Cottage Industry in the Industrial Revolution refers to small-scale, home-based manufacturing.<\/figcaption><\/figure>\n\n\n\n<div style=\"height:50px\" aria-hidden=\"true\" class=\"wp-block-spacer\"><\/div>\n\n\n\n<h2 class=\"wp-block-heading\">WHAT IS THE FACTORY SYSTEM IN THE INDUSTRIAL REVOLUTION?<\/h2>\n\n\n\n<p>The <a href=\"https:\/\/crunchlearning.com\/website_ec2cbfb0\/factory-system-in-the-industrial-revolution\/\" data-type=\"post\" data-id=\"2003\">factory system<\/a> is a term that historians use to refer to the development of centralized factories or mills that produced goods on a mass scale.\u00a0 Throughout the 1700s, inventors such as\u00a0<a href=\"https:\/\/crunchlearning.com\/website_ec2cbfb0\/richard-arkwright\/\" data-type=\"post\" data-id=\"1922\">Richard Arkwright<\/a>,\u00a0<a href=\"https:\/\/crunchlearning.com\/website_ec2cbfb0\/eli-whitney\/\" data-type=\"post\" data-id=\"1901\">Eli Whitney<\/a>,\u00a0<a href=\"https:\/\/crunchlearning.com\/website_ec2cbfb0\/james-hargreaves\/\" data-type=\"post\" data-id=\"1907\">James Hargreaves<\/a>, and\u00a0<a href=\"https:\/\/crunchlearning.com\/website_ec2cbfb0\/edmund-cartwright\/\" data-type=\"post\" data-id=\"1898\">Edmund Cartwright<\/a>, developed machines and techniques that helped improve production, especially in terms of the\u00a0textile industry.\u00a0 The <a href=\"https:\/\/crunchlearning.com\/website_ec2cbfb0\/textile-manufacturing-in-the-industrial-revolution\/\" data-type=\"post\" data-id=\"1974\">textile industry<\/a> was based on the development of cloth and clothing, and was the main industry that benefitted from the early developments of the Industrial Revolution.\u00a0 For example, James Hargreaves created the <a href=\"https:\/\/crunchlearning.com\/website_ec2cbfb0\/spinning-jenny-invention-in-the-industrial-revolution\/\" data-type=\"post\" data-id=\"1965\">spinning jenny<\/a> in 1764, which allowed a machine which allowed many spindles of thread to be spun at one time.\u00a0 Richard Arkwright added to this by developing the <a href=\"https:\/\/crunchlearning.com\/website_ec2cbfb0\/water-frame-invention-in-the-industrial-revolution\/\" data-type=\"post\" data-id=\"1977\">water frame<\/a> in 1769.\u00a0 The water frame allowed over one hundred spindles of thread to be spun at one time but was so large and needed so much energy that he built it next to rivers and creeks in order to use the force of the water to spin the machine.\u00a0 For his part, Edmund Cartwright developed the <a href=\"https:\/\/crunchlearning.com\/website_ec2cbfb0\/power-loom-invention-in-the-industrial-revolution\/\" data-type=\"post\" data-id=\"1962\">power loom<\/a> in 1785 which allowed quicker production of cloth.\u00a0 Finally, American inventor, Eli Whitney developed the <a href=\"https:\/\/crunchlearning.com\/website_ec2cbfb0\/cotton-gin-invention-in-the-industrial-revolution\/\" data-type=\"post\" data-id=\"1946\">cotton gin<\/a> in 1793, which allowed for quicker production of cotton.\u00a0 Previously, cotton had to be hand cleaned in order to remove fibers and seeds.\u00a0 Whitney\u2019s cotton gin sped up this process and allowed for much faster harvesting of the resource.\u00a0 In all, these inventions mechanized the textile industry and led to the establishment of factories throughout\u00a0Britain, which was the first country to industrialize.<\/p>\n\n\n\n<figure class=\"wp-block-image size-large\"><img decoding=\"async\" width=\"1024\" height=\"576\" src=\"https:\/\/crunchlearning.com\/website_ec2cbfb0\/wp-content\/uploads\/2026\/02\/Power-Loom-Invention-in-the-Industrial-Revolution-1024x576.jpg\" alt=\"Power Loom Invention in the Industrial Revolution\" class=\"wp-image-5936\" srcset=\"https:\/\/crunchlearning.com\/website_ec2cbfb0\/wp-content\/uploads\/2026\/02\/Power-Loom-Invention-in-the-Industrial-Revolution-1024x576.jpg 1024w, https:\/\/crunchlearning.com\/website_ec2cbfb0\/wp-content\/uploads\/2026\/02\/Power-Loom-Invention-in-the-Industrial-Revolution-300x169.jpg 300w, https:\/\/crunchlearning.com\/website_ec2cbfb0\/wp-content\/uploads\/2026\/02\/Power-Loom-Invention-in-the-Industrial-Revolution-768x432.jpg 768w, https:\/\/crunchlearning.com\/website_ec2cbfb0\/wp-content\/uploads\/2026\/02\/Power-Loom-Invention-in-the-Industrial-Revolution.jpg 1280w\" sizes=\"(max-width: 1024px) 100vw, 1024px\" \/><figcaption class=\"wp-element-caption\">&#8216;Illustration of power loom weaving&#8217; by T. Allom, Engraver J. Tingle. The Power Loom was an important invention during the time of the Industrial Revolution.<\/figcaption><\/figure>\n\n\n\n<div style=\"height:50px\" aria-hidden=\"true\" class=\"wp-block-spacer\"><\/div>\n\n\n\n<p>The development of the factory system involved the creation of large factories in city-centers.\u00a0 This was done because factory owners needed a large population of people to employ in the factories.\u00a0 Cities, at this time, were growing quickly due to the effects of the\u00a0<a href=\"https:\/\/crunchlearning.com\/website_ec2cbfb0\/enclosure-movement\/\" data-type=\"post\" data-id=\"1834\">Enclosure Movement<\/a>, which saw small farmers and their families forced off of the land.\u00a0 Cities were also beneficial to the factory system because they were usually built on rivers or canals which gave the factory owner access to water power if needed and for means of transportation.\u00a0 In the 1700s, most shipping and transportation was done by waterway and cities allowed factories easy access to a means of transporting finished products and for obtaining the raw materials needed in production.\u00a0 The development and success of these early factories caused more people to leave the countryside and move to the cities in search of work.\u00a0 As a result, cities exploded in population at this time.<\/p>\n\n\n\n<figure class=\"wp-block-image size-large\"><img decoding=\"async\" width=\"1024\" height=\"576\" src=\"https:\/\/crunchlearning.com\/website_ec2cbfb0\/wp-content\/uploads\/2026\/02\/Factory-System-in-the-Industrial-Revolution-1024x576.jpg\" alt=\"Factory System in the Industrial Revolution\" class=\"wp-image-5925\" srcset=\"https:\/\/crunchlearning.com\/website_ec2cbfb0\/wp-content\/uploads\/2026\/02\/Factory-System-in-the-Industrial-Revolution-1024x576.jpg 1024w, https:\/\/crunchlearning.com\/website_ec2cbfb0\/wp-content\/uploads\/2026\/02\/Factory-System-in-the-Industrial-Revolution-300x169.jpg 300w, https:\/\/crunchlearning.com\/website_ec2cbfb0\/wp-content\/uploads\/2026\/02\/Factory-System-in-the-Industrial-Revolution-768x432.jpg 768w, https:\/\/crunchlearning.com\/website_ec2cbfb0\/wp-content\/uploads\/2026\/02\/Factory-System-in-the-Industrial-Revolution.jpg 1280w\" sizes=\"(max-width: 1024px) 100vw, 1024px\" \/><figcaption class=\"wp-element-caption\">Imperial Gas Company\u2019s gasworks on the Regent Canal in London, England. (1828) <\/figcaption><\/figure>\n\n\n\n<div style=\"height:50px\" aria-hidden=\"true\" class=\"wp-block-spacer\"><\/div>\n\n\n\n<h2 class=\"wp-block-heading\">COTTAGE INDUSTRY VS. FACTORY SYSTEM &#8211; SUMMARY<\/h2>\n\n\n\n<p>In conclusion, the cottage industry is the term that historians use to identify production that was completed before the start of the Industrial Revolution.&nbsp; It involved people producing goods on a very small scale in their homes and was not centralized in one location.&nbsp; In contrast, the factory system developed as part of the Industrial Revolution and generally replaced the cottage industry.&nbsp; The factory system involved the creation of mechanized forms of production which were usually placed in centralized location such as cities.&nbsp; This led to the mass production of goods and the dramatic increase in the population of cities as people move there in search of work.<\/p>\n\n\n\n<figure class=\"wp-block-image size-large\"><img loading=\"lazy\" decoding=\"async\" width=\"1024\" height=\"576\" src=\"https:\/\/crunchlearning.com\/website_ec2cbfb0\/wp-content\/uploads\/2025\/12\/Industrial-Revolution-1024x576.jpg\" alt=\"Industrial Revolution\" class=\"wp-image-4893\" srcset=\"https:\/\/crunchlearning.com\/website_ec2cbfb0\/wp-content\/uploads\/2025\/12\/Industrial-Revolution-1024x576.jpg 1024w, https:\/\/crunchlearning.com\/website_ec2cbfb0\/wp-content\/uploads\/2025\/12\/Industrial-Revolution-300x169.jpg 300w, https:\/\/crunchlearning.com\/website_ec2cbfb0\/wp-content\/uploads\/2025\/12\/Industrial-Revolution-768x432.jpg 768w, https:\/\/crunchlearning.com\/website_ec2cbfb0\/wp-content\/uploads\/2025\/12\/Industrial-Revolution.jpg 1280w\" sizes=\"(max-width: 1024px) 100vw, 1024px\" \/><figcaption class=\"wp-element-caption\">The Industrial Revolution is a significant event in world history because it transformed European and North American societies from being based on agriculture production to industrial production.<\/figcaption><\/figure>\n","protected":false},"excerpt":{"rendered":"<p>During the Industrial Revolution, the rise of the factory system dramatically shifted production from the decentralized, artisan-focused cottage industry to centralized factories using mechanized processes, significantly increasing output and efficiency.<\/p>\n","protected":false},"author":1,"featured_media":5949,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"iawp_total_views":52,"footnotes":""},"categories":[11],"tags":[15,17],"class_list":["post-1827","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-industrial-revolution","tag-history","tag-industrial-revolution"],"_links":{"self":[{"href":"https:\/\/crunchlearning.com\/website_ec2cbfb0\/wp-json\/wp\/v2\/posts\/1827","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/crunchlearning.com\/website_ec2cbfb0\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/crunchlearning.com\/website_ec2cbfb0\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/crunchlearning.com\/website_ec2cbfb0\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/crunchlearning.com\/website_ec2cbfb0\/wp-json\/wp\/v2\/comments?post=1827"}],"version-history":[{"count":6,"href":"https:\/\/crunchlearning.com\/website_ec2cbfb0\/wp-json\/wp\/v2\/posts\/1827\/revisions"}],"predecessor-version":[{"id":6068,"href":"https:\/\/crunchlearning.com\/website_ec2cbfb0\/wp-json\/wp\/v2\/posts\/1827\/revisions\/6068"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/crunchlearning.com\/website_ec2cbfb0\/wp-json\/wp\/v2\/media\/5949"}],"wp:attachment":[{"href":"https:\/\/crunchlearning.com\/website_ec2cbfb0\/wp-json\/wp\/v2\/media?parent=1827"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/crunchlearning.com\/website_ec2cbfb0\/wp-json\/wp\/v2\/categories?post=1827"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/crunchlearning.com\/website_ec2cbfb0\/wp-json\/wp\/v2\/tags?post=1827"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}