The term describes a decentralized manufacturing system wherein production occurs within individual homes, utilizing hand tools and simple machinery. A common example involves families producing textiles in their residences, supplementing their agricultural income. The products are typically then collected by merchants for distribution to larger markets.
This system offered several advantages. It provided rural families with a supplementary income source, reducing reliance solely on agriculture. It also allowed for greater flexibility, as workers could often set their own hours and work around other responsibilities. Historically, it played a significant role in proto-industrialization, laying the groundwork for the later factory system by developing skills and establishing market connections.
