Putting-out System

Real World Example

The putting-out system, also known as the cottage industry, was an early form of manufacturing where work was contracted by a central agent to rural workers, who completed tasks in their own homes. This system became widespread during the Industrial Revolution as it allowed manufacturers to produce goods without the need for large factories, responding to the growing demand for textiles and other products. It was important because it provided flexible work opportunities and helped lay the groundwork for more centralized industrial production. Today, a similar concept is seen in freelance work, where people take jobs from companies and complete them remotely, often from home. For example, a graphic designer might be hired by a company to create a logo without ever working in the company's office, allowing them to manage their own schedule and work environment.