Do you want to start a business in a rural area? You might be thinking that villages do not have a robust infrastructure compared to urban areas. Indeed, a business has unique requirements and needs a solid infrastructure to thrive. However, this should not deter you because there are ample business opportunities in rural areas! In fact, India’s rural and semi-urban Fast Moving Consumer Goods (FMCG) market is anticipated to reach US$ 100 billion by 2025 and to expand at a CAGR of 17.41%.

With more than 70% of Indians living in rural areas, you can find success here by implementing numerous small business ideas for rural areas. Moreover, the government’s “Atmanirbhar Bharat” initiative has significantly improved startup opportunities for entrepreneurs in rural areas.

No need to relocate to a big city because creating a small business in a village can give you an equal chance of generating profits and a healthy return on your investment. Additionally, essential services like daily needs are not readily available in rural areas. This automatically places them on the list of potential small businesses in villages with high growth rates.

Let us now explore some of the best small business ideas in villages in India:

1. Setting up a Mill

Setting up a mill in a village is one of the best small business ideas. In villages, most people grow different grains like wheat, oats, rice, corn (maize), and barley. When farmers are reliant on mills in the city for processing their products, they may find it tedious over time. They are also forced to pay for labor and shipping.

Having a mill within a village will eliminate the need for farmers to go to town for their products; instead, they can come to you. You only need a place to put your machine. Plus, you can opt for equipment leasing or an equipment loan to finance your tools and machinery. Thus, setting up a mill can be a cost-effective business option.

What makes it the best small business idea in a village is that you can sell the finished product to a nearby city and earn profits consistently.

2. Poultry Farming

As more people become aware of the health advantages of eating eggs and chicken, they start looking for local farms rather than ones that import their products.

For rural business owners who want to profit from this circumstance, poultry farming is one of the best-suited small business ideas for rural areas. However, poultry farms require an initial investment, and the results take time. So, it is best if you start small and raise a small number of birds so you can grow your business gradually. A poultry farm offers simultaneous earnings of both meat and eggs.

3. Organic Farming

To improve their health, most people now choose organic products, which shows a rise in the demand for organic goods. This is where organic farming comes in. Organic farming is gaining popularity among people as a viable small business idea for rural areas as it gives good results in the long run as compared to conventional agriculture.

Since organic farming creates less soil and water pollution, the land remains productive for a long time. It is possible to make a lot of money growing organic fruits, vegetables, and flowers on the Indian market because organic products are in high demand.

4. Grocery Store/Kirana

Imagine traveling to a city to buy some of the essential items you need daily because there are no stores nearby. Wouldn’t it be convenient to have a grocery store nearby that carried almost everything, from wheat to soap? You’ll save time, but you’ll also cut down on travel expenses.

A Kirana store is a perfect small business idea in a village area. In India or otherwise, people always prefer to shop locally, so opening a Kirana store that sells necessities could be a wise investment. Grocery stores may host a variety of businesses. You might also sell DTH and phone recharge cards along with household goods.

5. Making Jute Bags

One of the most potent all-natural fibers readily available worldwide is jute. Jute fiber is biodegradable and reusable. So, if you were looking to set up a small business in the village, jute bag manufacturing is a fantastic business to launch.

Making jute bags is a straightforward process. Anyone can undertake this business, even from their own home. In addition, this is a fantastic small business in rural areas for mothers, homemakers, and women in general.

6. Dairy Farming

Why not make milk a lucrative business opportunity since it is widely available in our nation’s rural and farming communities? One of the best small businesses in a village is to start a dairy company where you can import milk from farmers in your town and export it to businesses in cities. This way, not only you but also farmers make some money.

Any financial institution, which provides lower interest rates and more lenient repayment terms, can be used to obtain the initial financing required. This small business in a rural area could be very prosperous in the long run.

7. Candle Making

In addition to serving various religious and decorative purposes, aromatized decorative candles are in high demand. It is possible to start a candle-making business as a side job and on a small scale. Female entrepreneurs lead this segment by regularly presenting new candle-making techniques.

As a small business idea in rural or village areas, candle making can be started with little financial investment. Women can apply this small-scale business idea in villages and start supplying the neighborhood stores.

8. Clothing Store

A clothing store is yet another rural small business idea. The idea that people in rural areas don’t care about wearing designer clothing is untrue. They don’t wear these clothes because there aren’t any clothing stores in the area.

If you open a clothing store with a wide selection that everyone will wear during the holiday season and on special occasions, your business will grow significantly. A second small business idea in villages is tailoring.

9. Fruits and Vegetable Shops

Opening up a fruits and vegetable shop is one of the rural areas’ most straightforward and typical small business ideas for rural areas. You can start by going to the wholesale market and purchasing produce at a discount to sell it for a higher price and make a profit.

10. Fertilizers & Seeds Storage

You need to understand customers’ needs before proceeding with your small-scale business idea. In villages, farmers frequently travel to big towns and cities to buy fertilizers and pesticides. So, if you can create a storage facility to store pesticides and fertilizers, you can go into business and make life easier for the locals.

This small-scale business idea in a village doesn’t need a lot of capital because anyone can start it with just the purchase of seeds and fertilizer from a store.

In the End

Setting up your small-scale business in rural or small village areas of India can become prosperous if the conditions are right. It’s time to pursue your dream of starting your own business if that has always been your goal.

No matter what you do, whether you start a side business or quit your 9-to-5 job, there is something for everybody. Your choice of business will be determined by your skill set, your interests, and the resources you have.

If you are looking for a business loan to start your own small business, you can get a business loan from Tata Capital. Tata Capital offers multi-purpose business loans up to 75 lakhs at attractive interest rates. To help you achieve business success, we have relaxed eligibility criteria and flexible repayment options. 

Start your entrepreneurial journey with Tata Capital right away! Visit our website to learn more and apply online.

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