Top 7 Small Business Ideas for Rural Areas, Villages, Small Towns in India

Nov 4th 2023

Top 7 Small Business Ideas for Rural Areas, Villages, Small Towns in India, In terms of company start-ups and cottage industries, India's rural and small towns have a lot of promise. The primary cause of this is that 90% of Indians rely on agriculture and other related industries for their livelihood, which is why most companies in rural regions focus on these industries.

Furthermore, over 70% of people live in villages and small towns, thus an entrepreneur may be able to fill a number of gaps in the market and leverage some of the best village business ideas. If you are looking for the most profitable business ideas in rural areas or most lucrative village business ideas, you can continue reading as we have highlighted some of the most wonderful concepts below.

  1. Retail Store

Since most people in India live in rural regions, these designated zones are devoid of well-planned retail establishments. The stores may be of many kinds, serving various demographic segments. Starting a Kirana shop is one such sensible and simple alternative.

The Covid problem has demonstrated the Kirana store owners' tenacity and capacity to adjust to changing circumstances. As long as the Kirana store is opened at the proper location, has excellent customer service, and is well-stocked (supply chain), it is a highly viable choice that is always in demand.

     2. Livestock and poultry farming

The government is actively supporting the poultry farming industry, which is expanding quickly. Furthermore, it doesn't require a lot of land or cash. Still, someone needs some experience to manage the company. Poultry goods are in high demand both in urban and rural regions, which lowers return on investment. You may begin with a small number of birds at first, along with a restricted selection and quality of birds, and you can grow your company over time. You

     3. Clothing Store

In villages, buying clothing for important events or everyday necessities usually involves travelling to larger towns. Establishing a clothes business with high-quality brands, materials, and assortment is a surefire method to succeed, given that the supply chain is stable and the owner has solid relationships with the clothing suppliers.

In villages and small towns, there will be a significant demand for your items if you can offer the newest trends, patterns, and fashions in clothing. Additionally, you may set up tailoring services and offer your customers handcrafted goods at the store.

     4. Milk Booth

Operating a milking centre is a wise business venture since milk is abundant in rural locations. It is able to gather milk from households and deliver it to dairy farms. Although there is less money needed to open the centre, the individual in charge must be certified. The only way to collect and supply milk is to partner with a dairy farm. Initiating a local dairy initiative requires capital that may be obtained from several financial organizations.

     5. Fertilizer Shop

Starting a fertilizer/pesticide business makes great financial sense because agriculture accounts for a big portion of the rural economy. Before launching the firm, a licence application must be made. In addition, seeds, fertiliser, and insecticides may all be kept.

     6. Flour Mill

The development of a flour mill is another concept that may be worthwhile to investigate. There is no shortage of grain, the basic material used in flour mills, in rural regions, and people do not buy packaged flour from markets like they do in cities. If you grind additional grains in addition to wheat, such as corn, oats, barley, sorghum and spices like turmeric and chilli, it may be a highly viable and successful company.

Additionally, the flour mill may profitably distribute the goods to neighbouring towns and cities. It's an excellent business that can be started and operated with little capital but with a strong electrical connection.

   7. Vegetable/fruit Seller

Living close to villages and small towns offers a good economic opportunity to start producing and distributing the food. The market for organic fruits and vegetables is expanding quickly. To raise the product, you will need acreage or a contract with farmers, which makes starting a business difficult. Additionally, as these are perishable items, storage requires refrigeration. Establishing the firm near suppliers would save you money on logistics and transportation.

Importance of A Small Business Loan

If you're a small business owner, you might be thinking about taking out a small business loan to support the expansion of your company. You can get the money you need from a small business loan to grow your company, buy new equipment, or recruit more staff members.

Knowing the essential components of a small business loan is crucial before you apply for one. You may be certain that you are receiving the finest loan possible for your company by being aware of the essential components of a small business loan.

The interest rate is the first important component of a small business loan. Depending on the lender and the kind of loan you are asking for, the interest rate on a small business loan will change. Before you apply for a small business loan, make sure to browse around and compare interest rates.

The terms of repayment are the second important component of a small business loan. The terms of repayment for a small business loan might differ based on the type of loan you are seeking for as well as the lender. Before you apply for a small business loan, be sure you are aware of the conditions of repayment.

Collateral is the third essential component of a small company financing. An asset that may be used as security for a loan is called collateral. Property, machinery, and inventories are examples of collateral. Before you apply for a loan, make sure you ascertain what kind of collateral you will require in order to obtain a small business loan.

The credit score is the fourth important component of a small business financing. Lenders use your credit score as a numerical representation of your creditworthiness. Your chances of getting a small business loan authorised increase with your credit score. Before submitting an application for a small business loan, make sure to verify your credit score.

The co-signer is the fifth essential component of a small company financing. A cosigner is someone who promises to pay back the debt if you can't. Make sure you locate a creditworthy cosigner prior to submitting an application for a small business loan.

The guarantor is the sixth essential component of a small company loan. A guarantor is a person who promises to pay back the loan in the event that you don't return it. Prior to applying for a small business loan, be sure your guarantor has a clean credit history.


Is the revenue from fishing and poultry subject to income taxes?

No, there is no income tax exemption on profits from the fishing and poultry industries. They are taxable even though they are classified as related activities to agriculture.

What should one consider before launching a company in a small town or village?

Conducting a feasibility study is a good idea before to launching a business. To make appropriate plans, try to comprehend the competition and the level of demand for the location. Also, starting a firm requires both capital and a place.

Which industries make more money in rural areas?

Agriculture-related businesses have a higher chance of success since there is a plentiful supply of raw materials, which may be exported to neighbouring towns and cities for higher profits.

Is it possible to receive a loan for a poultry farm?

Indeed, the government encourages people to develop chicken farms, and in addition to the MUNDRA programme, banks also provide loans to business owners. Bank financing is not, however, devoid of collateral.

The Conclusion

As there are different types of small scale industries operating today, there are endless possibilities for entrepreneurs in the rural sector. All you need to do is to explore all available village business ideas, compare them given your particular business goals. You can also for a small business loan that is offered by various banks and NBFCs these days. That would help you realize your business dream successfully without worrying about funds.


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