Final answer:
The term for the manufacturing of goods at home during the early years of the Industrial Revolution is known as the 'cottage industry'. This model involved entrepreneurs providing materials to families who then created finished products for sale. The transition from cottage industry to factory production was a hallmark of the early market revolution.
Step-by-step explanation:
The Cottage Industry
During the early days of business growth before the Industrial Revolution, many sold or bartered products from their homes, a system known as the cottage industry. This term describes the manufacturing of goods in the home setting, a common practice in the 1700s in England and later in other countries. Entrepreneurs would supply raw materials to farm families, who would produce finished goods like woven cloth, bonnets, and nails. The entrepreneurs would then collect these items and sell them for a profit.
As the market revolution took place in the early nineteenth century, the focus shifted from home production to factory production. This led to a change in economic transactions, from those based on social relationships and emotional attachments to impersonal market transactions dictated by supply, demand, and price.
In conclusion, the cottage industry played an essential role in the early stages of the market revolution, providing an intermediary phase between agrarian self-sufficiency and the widespread adoption of factory-based production.