Best Small Business Ideas For Small Towns In India

Piyush comes from a small town called 'Gonda' in Uttar Pradesh. He worked as a skilled worker for a long time at a flour mill. Due to his skills, he was often appreciated by his bosses. He had a set schedule where he worked hard. His earnings put food on the table, his children could make it to school, and his wife put up a happy smile on her face every day. 

But during the nationwide lockdown, he had a significant setback. His wife's smile was wiped off as it was difficult for her to make ends meet. The entire family suffered, and Piyush became helpless. 

One day when he was gradually losing all hope, he heard an unforgettable speech by our Prime Minister, Mr. Narendra Modi. The address emphasised a government initiative, 'Aatmanirbhar Bharat Abhiyan.' 

He suddenly got the idea to set up his own flour mill. He knew a few people who could help him get started, and he had the experience. And that's how he started his own small business using his learned skills. 

While his story is emotional and inspiring, there is no denying the fact that starting a business is not a piece of cake and comes with many challenges. 

The first challenge often is to find the right business idea to get started. Then comes the question of raising sufficient funds or capital. The third ... Umm... Let's not get ahead of ourselves and focus on the first one - finding a business idea. 

Why Start a Small Business in Rural Areas? 

A village upliftment program by Hand in Hand India brings rural entrepreneurship success stories where they trained men and women to start their businesses.

One of the main reasons why you should start your business in rural areas is to bring development and livelihood improvement. 

44% of the youth in rural areas aspire to become an entrepreneur. Remember Jugaadu Kamlesh from Shark Tank?

People in rural areas aspire to better their living conditions - something you'll agree with. Entrepreneurship improves a person's living conditions and gives financial freedom. In rural India, owning a business brings respect and recognition. In addition, it brings development to the whole rural area. 

• Starting a business in a rural area is more affordable;
• It helps improve the economy of the room;
• It builds a large customer base from the start because of lesser competition;
• This enables you to gain the trust of the locals. 

Best Small Business Ideas for Small Towns in India 

The Atmanirbhar Bharat Abhiyan, led by the Indian Government, has helped many MSMEs to gain a competitive edge. 

If you are also thinking of starting your business in a rural area, let's look at some exciting business ideas for small towns in India. 

Idea #1: Start A Small Scale Flour Mill Business 

With no seasonal boundaries, a flour mill business or an 'Aata Chakki' company is a profitable idea that you can carry forward on a small scale. 

By partnering with farmers who grow grains on their land, you can purchase grains at a reasonable price. With flour milling machinery, you can process the grains into usable 'flour,' package it and sell it under your brand name. 

For this, you will need a storage area, heavy machinery to process the grains like rice, bajra, wheat, etc., and packaging material. 

Suitable for: 

• People with a storage area
• Women who can process the grains 
• Someone who can persuade the farmers to sell you their grains 
• Someone who can buy processing machinery 

Success Stories: 

• Ghanshyam Flour Mill 
• Shree Navshakti Flour Mill 

Idea #2: Start A Poultry Farming Business 

There is a growing demand for eggs and meat in India, even in small towns. Therefore, starting a poultry farm is a successful business idea. 

It is unnecessary to be a highly skilled person or invest a large amount of money to start this business. All you need are basic poultry farming skills. 

To start, you will have to find a place for farming. Choose a poultry sector and the type of bird you wish to farm. Get yourself an FSSAI licence, and voila! You are all set for a poultry farming business.

Suitable for: 

• People with a farm area
• Someone with a large storage area 
• Women who know how to breed birds  
• Someone who has poultry farming skills 

Success Stories: 

• Silvassa Poultry Farm 
• Suguna Foods 

Idea #3: Retail store (General Store) 

After the self-reliant India movement, retail outlets or stores have gained much popularity in India. And it is a proven fact that if a retail store is opened at a favorable location, it flourishes within no time. 

All you need to do is have a place for your shop and a reliable supply chain that supplies you with all the goods required for your retail store. It would help if you also invested reasonably in marketing your retail store. 

You can do wonders in this business with a well-stocked retail store and exemplary customer service.

Suitable for: 

• People with an area ideal for a shop 
• Someone with a goods storage area 
• Women who have a shop experience 
• Someone who has good contacts with suppliers 

Success Stories: 

• D-Mart 
• V-Mart 

Idea #4: Fertiliser/Pesticide Store 

You can never go wrong with an effective fertilizer/pesticide store in a rural area. As we all know, the rural economy is based mainly on the agricultural sector. 

You can start manufacturing organic fertilizers and pesticides that do not harm plants or crops. To sell fertilizers, you need to have a license issued by the Government. 

Once a licensed seller, you can sell seeds, manure, agriculture farming equipment, fertilizers, and pesticides.

Suitable for: 

• People with an area ideal for a shop 
• Someone with a goods storage area 
• Women who have a shop experience 
• Someone who has good contacts with suppliers 

Idea #5: Small-scale manufacturing units 

Rural areas are a hub of small manufacturing units that cater to the demands of locals and nearby cities and towns. 

These small items like agarbatti, paper cups, paper plates, disposable bags, block-printed clothing, and other handmade items are highly demanded in urban areas. 

Rural areas are abundant in raw materials, so setting up a small manufacturing unit is an excellent business idea.

Suitable for: 

• People who are creative 
• Someone with a small manufacturing area 
• Women who are skilled in handicrafts
• Someone who has good contacts with distributors 

Success Stories: 

• Aavaran 
• Creative India 

Idea #6: E-Mitra 

Villagers can always be ignorant of government schemes, news, and updates. Projects like these can improve their lives or help them grow their business. 

If you are a learned person and have access to such regular updates, you can open up an E-Mitra shop in a village and be a helping hand to all the villagers. 

Suitable for: 

• People who are knowledgeable in different fields 
• Someone regular in getting updates 
• Women who wish to help people in the village 
• Someone skilled in imparting knowledge to others 

Idea #7: Take an Amazon/Online Business Store Franchise 

The franchise model of an online business store is becoming increasingly popular in India due to its low investment requirements. It helps provide shopping assistance to people willing to buy products from an e-commerce retail store. A customer can find deals online in a store, order the product, and pay the shopkeeper for it.  

Numerous shops have partnered with Amazon as 'Amazon Easy Store Franchisees.' In return, Amazon gives the shopkeeper a 12-13% commission on every order in your store/shop. You can earn additional income if you deliver the product to a customer's doorstep. All you need to do is register your shop as an Amazon Easy Store. 

If you have an existing shop, you can register as an Amazon Easy Store, and with Amazon's branding, you can increase your customer base. 

For example - Sabse Sasta Dukaan is an intelligent retail shop (online business store) that assists customers with various products like medicines, electronics, flight booking, bill payments, recharges, hotel bookings, groceries, and more. 

Suitable for: 

• People who know basic computer skills 
• Someone who has an existing offline shop (minimum 200 sq feet) 
• Women who wish to help people place an order via Amazon
• Someone who has access to the internet for ordering and shopping 

Success Stories: 

• Kalyan - Amazon Easy Store 

Idea #8: Start a Fishery Business 

The fishery business is nothing new in India. However, it is a profitable business idea as there will always be a demand for consumable fish or fish for ornamental purposes. 

If you are a person who is skilled at breeding, preserving, storing, transporting, and marketing fish or fish products, you can start a fishery business.

All you have to do is access a river or a pond with quality water resources. Then, rent/own a boat, take a large fish net, and spread it across the water resource to catch fish.

Suitable for: 

• People who have a nearby consistent quality water resource 
• Someone skilled in fish farming 
• Women who know how to catch fish 

Success Stories: 

• Anup Sarmah 
• Swarajya Fisheries 

Idea #9: Solar Energy Business

We all know that the sun is the ultimate source of energy. Owing to the current scenario where resources are scarce, the Government of India has emphasized techniques, schemes, and lucrative offers that encourage more and more people to indulge in solar energy adaptation. 

With the alarming increase in electricity consumption, the importance of solar energy is rising. Hence, if you are a person who is skilled at setting up a solar plant, solar panels, and more, you can become an integrator in the solar energy business. 

And if you have technical knowledge, you can also become an associate or developer in the solar business. 

Suitable for: 

• People who have a technical knowledge 
• Someone who can hire or train staff 
• Women who have experience in sales and marketing 

Idea #10: Cattle Feed Business

Cattle need fodder to survive. The fodder is manufactured on a commercial scale.  You might have heard about 'Kapila Pashu Aahar' many times. They provide nutritious feed for animals, primarily cattle, at affordable rates. 

Owing to the rise in the production of healthy meat and milk in India, farmers are keen on making their cattle adequately fed and healthy. Hence, starting your own cattle feed business in your area is something you should start with. 

Set up a feed mill if you know about animal nutrition. In addition, you need a small farm to operate it and have a unique formula and the highest quality ingredients for processing cattle feed.

Suitable for: 

• People who have a technical knowledge 
• Someone who can hire or train staff 
• Women who have experience in sales and marketing 

Idea #11: Cement Bricks Making

Urbanization is rising, and the demand for bricks is not slowing down soon. Hence, starting your own cement brick manufacturing business is one of the most practical business ideas for rural areas. 

If you know the brick mixture ratio and the procedure required to cure and dry the bricks, you can start your semi-automatic or fully automatic cement brick manufacturing business. 

All you need is some investment to set up the entire plant, block forming machine, control systems, and skilled labourers to help you.

Suitable for: 

• People who have brick-forming skills
• Someone who can hire or train staff 
• Women who have experience in sales and marketing 
• People who have existing land to set up the plant 

Success Stories: 

• Zerund Bricks 
• Kairali Brick Unit 

FAQs 

Which type of business is best in rural India?

You can start a flour mill, livestock farming, cattle feeding, and organic fruits and vegetable business in rural India that require low investment. 

How to earn money in a village?

Villages are known for their farming. Earning money through agriculture is the best way where you do not need high skills, significant investments, and machinery. 

Which business is the most profitable in rural India?

Organic farming business is the most profitable business in rural India. If you become a competent supplier or a vendor, your farming business will succeed in a few years. 

Start a Small Business Today! 

Reading about all these ideas might be overwhelming for you. But take a deep breath, let all the thoughts of 'I'll succeed or not' subside, and think - what are you skilled at? 

Once you find this out, you'll be able to choose a business that works for you. And if you already have an idea in mind, why not start a digital store or launch a free vCard today? 

Launch a Free vCard for your Small Business Now