Analysis of Cottage Industry in Bangladesh: A case study on Khadi

Bangladesh is one of the developing countries in the world. Overwhelming property, unemployment, illiteracy, abundant unskilled cheap labor force etc. are the common features of Bangladesh. In this connection Khadi product plays an important role to overcoming the problems by exporting. If the producers fulfill the objectives of Khadi to meet the customer satisfaction by creating new and modern product of Khadi, it can be a leading organization in terms of cottage industry. Many times it is said that cottage industries are inevitable backward and lagging part of the economy. But economic analysis and practical experience in many countries show that the cottage industries have displayed remarkable persistence and have contributed significantly to the economic development of the country. The commonly perceived merits often emphasized for further promotion especially in the developing country like Bangladesh include their relatively high labor intensity, dependence on indigenous skills and technology contribution entrepreneurship development and innovations of growth of industrial linkage. The case for fostering cottage industry growth in Bangladesh is irrefutable as these industries offer bright prospects for creating large scale employment and income earning opportunity at relatively low cost for unemployment especially rural areas strengthens the efforts towards achieving high and sustainable economic growth.