The term for this is "cottage industry". The system also existed in England around this time. Essentially it was industrialization, just dispersed and unable to

The term for this is "cottage industry". The system also existed in England around this time. Essentially it was industrialization, just dispersed and unable to take advantage of the efficiencies of centralization. It ended in Europe due to the rising costs of labor versus increasing automation. But any economy with a large consumer base and low capital investment will naturally develop that way.