12+ Best Small Business Ideas For Village, Rural Areas [2024]

Best Small Business Ideas for Villages, Rural Areas in India

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Small Business Ideas For Rural Areas 

In a country like India, where you could encounter hundreds of problems at every crossing is full of brilliant minds. And it is more relevant if we see it in the context of 64% of the rural population. Plenty of problems to solve giving plenty of opportunities to grow in rural areas. With the same line of thought, this article will give you the best small business ideas that you can start in a village or rural area.

India is the 5th largest economy in the world and is growing with time. Therefore it is significant that the components of its GDP are of high importance. The rural areas alone contribute 46% of the National Income and 25-30% of the GDP of India. 

The government has increasingly realized the potential of the people in rural areas. It has taken effective steps to promote business and industries in Rural areas of India to give a push to employment and entrepreneurial spirit. 

Let’s Explore the Best Profitable Small Business Ideas in Villages, Rural Areas in India

Have a look at some of the profitable business ideas for rural areas that an entrepreneur can consider when choosing his business.

1. Retail Stores

Retail Stores

Opening your retail store is one of the most profitable business ideas. The majority of the population in India still lives in rural areas, and with the increasing population, their need for products in rural areas is also increasing. Retailers can meet this gap by opening a retail store to match the demand and supply. Retail stores require low investment and minimum time to start.

2. Organic Farming

The whole of the country has learned about the benefits of eating healthy and fresh food, which can be seen with the sharp rise in demand for organic fruits and vegetables. Even the urban population prefers fresh fruits from the local farmers and sellers manufactured chemically. The rural population has practiced growing crops and can easily establish a supply business and an effective supply chain in the urban cities.

3. Poultry Farming

Along with the benefits of organic fruits and vegetables comes the need for fresh eggs, chicken, and meat. It is an upcoming opportunity in rural areas and can easily be started with a small initial investment. In time, it can be a steady source of supply.

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4. Establishing a Mill

Research says that rural farmers grow almost 80% of the seeds and grains. These farmers are heavily dependent on the big manufacturing houses that process their seeds and then sell them at huge profits while the farmers only earn pennies. 

Establishing a Mill

To avoid this, Mills can be set up in villages where the farmers can eliminate the intermediaries and process their seeds, thus avoiding the expensive labor and shipping charges. Establishing a mill requires a hefty investment, but the government provides loans and subsidies, which can be availed.

5. Pharmacy

Millions of lives are lost annually due to the lack of proper medicines in rural areas. The villagers have to travel to and fro to the cities to get their hands on the medicines, and often in this tedious process, mishappening occurs. It shows a need for a village pharmacy and can also be a suitable business idea. You can establish a partnership or franchise with various popular pharmacy stores.

6. Electronic Shop

Rural areas house the majority of the people in the country. These people should also have access to entertainment and technology just like others. Opening an electronic shop in villages will be a huge success. Mobile phones have increasingly become an essential part of every human, and the villagers also want access to such facilities. Shopkeepers can keep budget-friendly and limited electronic items for an early stage until the response is known.

7. Agarbatti making

India consumes around 1490 tonnes of agarbatti daily. Agarbatti has become such an item that it is used everywhere, from temples to offices. The making of this product requires minimum components which are easily available in rural areas. They can take advantage of this and set up a small business of agarbatti.

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9. Dairy Farming

Almost every family in a village has a cow, and there is never a shortage of dairy products. Why not take benefit from this and start a business? Milk and dairy products can easily be imported from the villages and shipped to the vendors in the Urban areas. It can be an easy and low-investment business in the rural area, which will reap lots of profit.

10. E- Mitra Centre

E-Mitra centres are the updations hub for the people of rural areas. From government-related filling to requests, rural people need to visit local E-Mitra shops. Hence, it is one of the best business ideas to start in rural areas.

11. Disposal Making

Making disposable items at home could be a great business idea as it is a low-investment business, and the demand for disposable plates and glass is there at every village event. You can also expand the business to other villages by making deliveries. The best thing about this business is that operating machinery for this isn’t rocket science; any family member can get involved in the business.

12. Coaching Centres

Coaching Centres

A coaching centre can be an investable and good business idea. There is a need for more knowledgeable teachers in rural areas and can be taken up as an opportunity. By opening a coaching centre, you can educate students and provide employment opportunities to the local people. It will act as both a social as well as the economic cause.

13. Auto Mobile Repair Business

There is a high presence of vehicles in rural areas like autos, tractors, etc. These vehicles form an integral part of the business of the people. To avail of services or repairs on such vehicles, they must travel to the cities, which proves costly and is a time taking process also. If a repair business is set up, it will provide fast services to people and also save transport costs. 

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Conclusion 

Setting up a small-scale company in India’s rural region might be profitable if the conditions are favourable. If you have always wanted to open your own business, now is the time to do it. You can easily establish a business and obtain first movers advantage in the village areas. The government is providing loans and subsidies to kickstart businesses in rural areas. Take the help of our article and start your venture today!

FAQs Small Business Ideas for Rural Areas:

What is the most profitable business in the rural area?

Setting up an electronic shop is one of the most profitable businesses in rural areas. As India is thriving to be more digital, so are its people.

What is the Governments contribution towards the development of rural business?

The government has been providing assistance to the rural people by providing various banking facilities and giving loans and subsidies to the people at very low-interest rates.

What are the best 5 business ideas to start in rural areas?

The best businesses to start in a rural area are as follows:

  • Retail store 
  • Organic farming 
  • Poultry farming 
  • Electronic store 
  • Pharmacy 

Is it profitable to start a business in a rural region?

Yes, the business might be profitable if you employ all your available resources towards the success of the business.

How do small businesses help rural people?

Small business provides livelihood to the rural people and adds to their welfare. It helps them grow and develop.

What businesses can be started under Rs 50000 in the village?

Villagers can start many businesses under 50,000 in a village. If your business requires more capital, people can obtain loans from banks. Some businesses that need more investment are poultry farming, dairy farming, and Kirana store.

Which form of promotion is effective in rural areas? 

In the village, people are familiar with each other. Personal Selling will be the most effective in rural areas.

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