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Nepal is an agro-based country. It is also rich in natural resources. It is not an industrialized country on required level. There are some small industries. Some traditional industries such as preparing clothes at home, making pots, making baskets etc. are cottage industries of Nepal. To operate these sorts of industries do not need a large amount of capital.

There are many cottage industries in Nepal. Some of the major cottage industries available in Nepal are weaving clothes, cloth printing, carpet-making, carpentry, carving in word, making utensils, making basket, making traditional paper, making shoes, making the tools of steel and iron, making mats, making pots, making ornaments and so on.

The condition of them in our country is not improving, rather is getting worsened. There are many reasons behind their decline. Firstly, they can not compete with modern industries which can produce a large numbers of goods and sell cheaply and quickly. Second, cottage industries are not well-organized and managed due to lack of experts and knowledge. The founders of the cottage industries are unknown about modern techniques and policies of operating business organization. Nowadays, cottage industries in Nepal are facing with many problems for their existence and revival. If the government of Nepal does not bring some new policies for them, they will disappear after some years. And other many people of Nepal also may have to face unemployment problem. Many people are living their life by working in cottage industry. So that government of Nepal should be conscious in such field.