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Small Business Ideas for Small Towns, Rural Areas & Villages has more importance specially in covid-19 pandemic situations.

Villages have their own set of infrastructure which is different from the urban areas. It is true that business requires a special set of infrastructures and has its own different needs. But this doesn’t mean there are no business opportunities in rural areas.

The opportunities to start new businesses are more in rural areas. Some of the business ideas that can be explored in the small towns are discussed below for entrepreneurs to take a call.

There are many business opportunities in rural areas as well. There are some businesses which are suitable only in rural areas like agriculture-related business, FMCG shops etc. 

It would be beneficial for a person settled in the village to start a business there itself. It would require less capital and less investment to set up a small business in the area you live in.

As most of the businesses in the rural hinterland is directly or indirectly dependent on agriculture or a related sector, there are number of opportunities available to explore and flourish with time.

There are advantages as well like lower costs and lower competition. Top 20 different small business ideas that can be explored in the small towns are discussed below for entrepreneurs to take a call or can start.

Small Business Ideas for Small Towns, Rural Areas & Villages Which is Boosting Economy 

Depending on the local setup, the opportunities may vary, and you may have a unique solution for them. However, some proven small business ideas for small towns and villages can work great if executed well. Here goes the list:

Below are some Rural Business Ideas with high profit return where you can dream of having a business of your own business:

  1. Organic vegetable farming
  2. Milk center
  3. Fishery
  4. Grocery/ Kirana Store
  5. Clothing Store
  6. Mobile and Accessories Store
  7. Wholesale of Fertilizers and seeds
  8. Drinking water supply
  9. Hair Saloon
  10. Poultry farm
  11. Retail shops
  12. Small Scale Manufacturing Units
  13. Flour mill
  14. Threshing machine
  15. Oil mill
  16. Flower Farming
  17. Freelance Writer
  18. Independent Blogger
  19. Auto Repair Shop
  20. Tutorial Services

Organic Vegetable Farming

Organic Vegetable Farming is the most popular method followed by farmers in which the vegetable crops are raised by the use of organic waste such as animal wastes, plant wastes, crop wastes, farm wastes, and biological materials.


  • To produce in large quantity many have started using vaccines. Using which the vegetables, fruits, become mature even before the actual time. Therefore the demand for organic produce has increased so much.
  • You can start doing organic farming and sell it in the town market where it is in high demand. For this, you can find a proper vendor for your product so that you don’t have to struggle to sell your produce. 
  • You can also supply your products directly in the market. But in the beginning, it would be better to go through a vendor as you would be new to the market and you would not be aware of buyers. You might not find the proper market to sell your products on your own. Also if you do it all yourself it would increase your cost of production as transportation cost and storage cost will add on it. Moreover, you might not be equipped with everything in the beginning. Also, you need to sell your products immediately as these are perishable items and you would face difficulty in storing it. So it’s better to sell off your products for a fixed amount and grow your business in the beginning without any risk.
  • Later when you would have earned enough income to grow your business, then you can remove the middleman and become a direct supplier. As with time you would have made various contacts and would have learnt the market trends and requirements. Along with this you would have acquired transportation and storage facility of your own.

Milk Center

  • In villages cows and buffalos are very common and they are reared for milk and cow-dunk. There are so many dairy farms which demand milk in huge quantity. They take the milk from the milk centres. These milk centres collect milk from the villagers. 
  • To start the milking centre you would have to contact a dairy farm and do a tie-up with them. 
  • You need to have a proper place where you can keep the weighing machine and the machine to measure the quality of milk fat and other things. Also, place fodder which is consumed by cows and buffalo.
  • You need some basic qualifications like 10 + 2 or above, as you would have to maintain accounts register and do some basic calculation. You can, however, use billing software as well.
  • You would have to maintain cleanliness with the milk carrier so that the milk doesn’t get spoiled. 
  • Maintain good relations with your customers, pay them on time so that everyone comes to your centre.
  • Amul is largest retail chain for Milk and its products in India.

Fishery and Aquaculture

  • Rearing fish in farm ponds boosts rural incomes and Fishery business is high paying as well. You need to have some understanding of this business as it’s not easy. You need sufficient land for fishery business. You need to be very careful in this business as one single mistake can lead to a huge loss. 
  • The disease of one fish or one infected fish can spoil the fish of the whole pond. Therefore you need to be extra careful in this business. 
  • You can sell your fish directly in the market if the quantity is not very much but if the quantity is huge then you can export it as well. You choose to rear the fish which are most demanded and earns more profit, for example, Rahu, catfish, Hilish,Mangur, etc. 
  • Orissa is the top state in india in fishery and aquaculture.


Grocery/ Kirana Store

  • This business idea is widely explored by almost every segment of society.
  • Every household in every village requires grocery. So, opening a ‘Kirana’ store is one of the simplest businesses in India.
  • Reach out for suppliers of the products that are required to be sold, get a shop of rent and start this business right away.

Clothing Store

  • Most of the villages are secluded from larger towns and cities, so if a clothing store opens in a village that provides people with latest clothing apparel and quality fabric, it shall become a success.
  • Business owners will need to find garment suppliers who can bring a variety of clothes based on commission.
  • As villagers do not have much reach to travel to cities frequently; shall buy from the clothing store itself

Mobile & Accessories Store

  • Technology, communication and entertainment should not lag behind in villages, as majority of India’s populace comes from villages only. Even the thought of opening an electronics store in a small village is a huge success.
  • Almost every villager wants to communicate with their families, so mobiles are a necessity now. Therefore, only the saleable mobiles could be kept in the stock without making much of investment in a good locality.

Wholesale of fertilizers and seeds

  • As agriculture is the major occupation in the villages. Starting a wholesale store of fertilisers would be one of the best options for your business. 
  • You might have to get a license for this business. You would have to check for the legalities. 
  • There are very fewer chances of facing loss in this business as most of the people in villages are agriculturists and fertiliser is one of the major requirements for agriculture.
  • You can even keep seeds at your store.
  • Make sure you do marketing of your store well so that you get customers as there would other store existing already in the market.

Drinking water supply

  • Usually, people used handpumps, ponds, rivers etc in the village. But now almost everyone has a hand pump at their homes and people have even started getting drinking water canes. 
  • You can start this business with very less capital as well. You can start the store at your home.
  • If possible you can take 4 wheelers like tata Mahindra to carry the canes. 
  • You can even manage with two-wheelers in the beginning.
  • If you do not find home delivery comfortable even then you can run your business as people themselves would come to your store and take the canes home by themselves.
  • As you also belong to the same village it would be easy for you to promote your business.

Hair Saloon

  • A hair salon can be a steady, profitable business, but before you open one, you need have skill in cutting hair.
  • Finding a niche for your salon helps you attract a loyal client base.
  • The location of your saloon also matters more.
  • The most important things a salon needs to succeed are a good culture, knowledgeable employees and an understanding of what its services are worth.

Poultry farm 

Poultry farm,
  • Opening a poultry farm doesn’t require much land. You on your own or with the help of some others can start this business very easily. You would have to rear small chicken up to certain wait and then you can sell then off. 
  • To begin with, you can start this business on a contract basis with a vendor. In this you would be provided with the chicken, their food and everything, you would just have to rear the chickens up to certain months or the weight according to their requirement. You will be paid either by the number of chickens or by weight. Mostly the payment is made according to chickens weight.
  • It will not be advisable to do everything on your own in the beginning. As that would require more capital and you might even face loss as you do not have contacts and you should not take a risk in the very beginning of your would be better if you start it on a contract basis.

Retail shops

  • You always have the option of opening retail shops. You can start a grocery/Kirana store, a clothing shop, mobile accessories shops, hardware stores, etc.
  • You can even open a saloon. 
  • Starting a tailoring store is yet another option. 
  • These are some common store which you can open in villages along with a sweet shop, fruits stall etc.

Small Scale Manufacturing Units

Small scale manufacturing businesses include various types of products, including disposable paper plates, cups, paper bags and many more.

Disposable products in today’s market are in high demand and investment required to open this business is not much. Most of the money is invested in raw materials and related resources.

It must be noted that disposable products are in high demand in the market and investment required to start this business is not much.

Flour mill

  • In urban areas, people buy flour packet directly but in villages, people usually go to flour mills as they grow wheat in their fields. 
  • If you open a mill then don’t use it only for wheat. Use it for corns, turmeric, chilli, coriander etc. as well.
  • You can get a machine for making flattened rice as well. Make sure you have a good electrical connection.
  • In rural areas, people usually don’t buy all these from a store as they have raw stocks with themselves because they grow it in the fields.
  • It will be very profitable for you if you provide all in one place.

Threshing machine

  • If you have enough capital then you can invest it in getting a tractor. Along with it, you can buy a threshing machine, seed drill machine to start with. Not everyone keeps it with themselves. They usually rent it. 
  • It will be a very profitable business as this is always required in agriculture. In every season before and after harvest, these are required. 
  • If you have these you can even keep the machine which is used to water the fields(pumping set, boring). In this way, you would have all the required things with you and people would not have to go to others for different requirements. 

Oil mills

  • Due to lack of oil mills, people either go too far places to get the oil refined or they are forced to sell the produce at a lower cost. 
  • If you collect enough capital you can set up the oil mills.
  • As people grow mustard, soybeans, groundnuts etc in their fields they usually get the oil extracted in the mills for their use. 
  • People might not get oil extracted in large quantity as it is for their use only. The material which remains after the extraction is used by them as fodder for the cattle.
  • As this is done by every household in the village you would not run short of customers.

These are a few more small businesses which you can start in your village. Depending on the amount of capital you have you can decide on your business. See for your competitors and market before starting any business. 

Flower Farming

  • Flower farming is known as floriculture. In India, flower farming is cultivated for commercial purposes in many states such as Karnataka, West Bengal, Madhya Pradesh, Mizoram, Gujrat, Orissa, Haryana, Jharkhand, Assam, Chattisgarh, Andhra Pradesh, and Tamil Nadu.
  • The Indian flower farming industry includes flowers like Rose, Tuberose, Gladiolas, Anthurium, Carnations, Marigold, Jasmine, Hibiscus, etc., which are grown in farms, poly houses, and greenhouses in India. The cut flowers are exported to dried flowers. 
  • Within India, fresh flowers have a huge demand for religious purposes. These are offered in temples and even used at homes. 
  • While labor is involved, flowers can grow throughout the year, especially if seeds are easily available and greenhouse facilities are used, keeping the business profit non-seasonal.
  • It will be a very profitable business as In India, flowers are considered extremely important in more ways than one can imagine. For example, they are not just ornamental decorations but are used for religious festivals, functions, weddings, as offering to God in temples, and so on.
  • Many people grow flowers in their own home gardens due to the daily necessity and consumption. Hence the demand is severe and the flowers are revered here.

Freelance Writer

  • Since small towns often offer lower costs of living, they can be great places for independent freelancers.
  • Whether writing for local customers or doing their business online – to set up shop. So you can start your own freelance writing business and save money on a variety of different expenses.
  • Today there are still some freelance writing opportunities at traditional publications, but the big opportunity is online in content marketing. 
  • Business and consumer-oriented websites are rushing to post more & more content related to their business space, to try to attract traffic from search engines, and to positioning themselves in the minds of potential customers.

Independent Blogger

  • Blogging is one of the best ways to promote any business online. 
  • Independent bloggers make thousands of rupees monthly from the services they are offering. For modern people, this is one of the best small town small business ideas.
  • Or you can start your own blog and make money from advertisements, affiliate links, or sales products that take advantage of low-standard living standards and services – so unless you have enough Internet access.
  • A blogger can make money by creating their own website and then earning money from advertisements, affiliate marketing, and selling products online. But this is the starting part.

Once you are into blogging there is a lot more to do. You can do any of the following:

  • Advertisement for others
  • Start email marketing
  • Write Product Reviews
  • Social Media Blogging
  • Write a business blog
  • DIY and recipe blogging

Auto Repair Shop

  • If you are already a pro at auto repair, you can open a shop in the city. 
  • Especially if you are serving a rural area where you are the only shop for miles, you can attract business from other cities as well.
  • For those entrepreneurs who are skilled in automotive repairs, small towns can be great places to set up shop, especially if there are no other repairs around.
  • While distance can be an advantage, it can also harm business when trying to ship parts or provide a specialized service, so keep this in mind when you do your research OR try to stabilize your shop near the area consumers and travelers pass out through.
  • Between high levels of traffic and equally high levels of tourist traffic on local highways, there is a consistently significant demand for auto repair services and auto parts.
  • Convenience is essential for most middle and upper-class consumers and travelers.

Tutoring Service

Tutoring service
  • Where there are homes, there will be children and where there are children, there will be tears over mathematics and grammar. However, the Internet has ended with online tuition services but tutoring services are one of the small town business ideas that work. 
  • Many students are having problems in understanding maths and grammar. You can earn a good amount by starting your own tutoring service.
  • Most small-town business ideas require a team. Similar is the condition of tuition services. You need to create a team. Hire some teachers but make sure to hire professional tutors. Do not hire a tutor who tries to be a jack of all subjects. Who is specialized in a subject and is less expensive.
  • Always keep in mind that not all students are eager or excited to learn. Some students may try your patience. You should make up your mind before tolerating it but the best thing is that you can do it part-time with any other job. Here is the Step by step guide:
  • Create an office for your Services.
  • Determine the subjects you can teach. Tutor hire for other subjects.
  • Make a list of students.
  • Obtain all required permits.
  • Make a business plan.
  • Advertise your services.

Small Business Ideas for Rural Areas, Villages, Small Towns FAQs:

# Which business is best in small towns in India?

While the idea of ​​every small business is not right for all cities, some types of businesses do well in small cities or according to demand in locations of all sizes. If you have an entrepreneurial spirit, but to be sure how best it is, consider these ideas to start a small business.

  • Coffee shops
  • Food truck
  • Tutoring
  • Grocery Store
  • Auto repair shop
  • Retail shops

# Which business is best for the Village area with a small investment?

These are some business best for village area with the small investment:

  • Agarbatti Making
  • Paper Cup Making
  • Bakery
  • Banana Wafer Making
  • Bedsheet With Pillow Cove
  • Biodiesel Production
  • Bridal Store
  • Coconut Based Business
  • Ginger Garlic Paste Making
  • Hair Band Making
  • Papad Making
  • Paper bag Making.

# What are the most successful small businesses?

Some businesses are inherently more profitable than others. This can be due to low expenses and overheads or businesses charge too much for their services or products. Nevertheless, all businesses, however profitable they may be, can become a challenge. If you desire to run the most successful and profitable business, then the following 10 most profitable small businesses like; 

  • Catering services
  • Website Design
  • Courier Services
  • Mobile shop
  • Hairdresser Services
  • Cleaning Services
  • Online Tutoring
  • IT Support
  • Marketing Services
  • Legal Services
  • Gardening, etc.

#  What business can I start with 20k?

Starting a business is not about ideas. It’s about making ideas happen but aspiring founders often find themselves struggling with conflicts and ideas – before they join the hustle. It requires extreme determination and confidence, but you need to be very clear about your business idea before you step into the entrepreneurial field. To make the hustle easy, a list of profitable manufacturing business ideas has been prepared that you can start with little investment.

  • Handmade candles
  • Pickles
  • Incense sticks (agarbatti)
  • Buttons
  • Designer lace
  • Handmade chocolates
  • Cotton buds
  • Papad 
  • Disposable plates and cups
  • Jute bags
  • Paper bags,etc.

# Which business is best after lockdown?

COVID 19 has caused a huge loss of businesses and people losing their jobs due to the massive economic downturn. We can’t wait without doing anything. Therefore, we have to become more aware, decisive, proactive and thoughtful about the occupations that can begin at home during lockdown for undergraduate, working-class or post-retirement students. Some of the smallest business ideas to be launched after lockdown are described below: 

  • Selling Healthcare Products
  • Doorstep Delivery Business
  • Food Delivery or Tiffin Service
  • Online Tuition Classes
  • Becoming a YouTuber

# What business can I start with 5000 rupees? 

Small Investment Business Ideas – Today you will find a large number of young and dynamic people who are looking for small business ideas. They want to quit their 9 to 5 jobs and start their own business. However, they are running out of business ideas and money. To help them, we are here with small business ideas ranging from Rs.5000 to Rs.5 Lakh. These are some small investment business ideas with small investments in India worth Rs. 5000. 

  • Mobile Recharge & SIM card selling
  • Tuition
  • Breakfast Shop, etc.
  • Vegetable or grocery shop

# Is it possible to get a business loan in villages or small towns?

Yes, you can apply for getting a business loan from any bank in these areas. The rules and regulations are similar to the ones applied in the urban centre.

# What are the things to keep in mind before starting a business in villages or small towns?

Before starting a business, it is advisable to do a feasibility study. Try to understand the competition and the demand for the place to plan accordingly. Also, funds and location are equally important to start the business.

# What businesses are more profitable in rural areas?

Businesses that are agriculture-related are more likely to succeed as the raw material is in abundant supply, while you can send the supply to the nearby towns and cities for greater profitability.

# Is starting a gift shop a profitable business?

Gift shop is a sound business in urban areas with more number of people undertake the activity during festivities, however, in rural areas it is not a successful idea but if you can add a bakery or a small snacks bar with the gift shop, it is likely to succeed.

# Does starting the poultry business requires a license?

Yes, it is necessary to take a permit from relevant state and local authorities before starting a poultry business. Also, NOC from electricity and water department required.

# Why do we need insurance for poultry business?

The birds that you breed in your poultry farms for meat or eggs are every prone to diseases. In case of an outbreak, it will lead to complete loss of bird population causing significant losses, hence it is advisable to take insurance cover for the poultry.

# Does the income from fisheries/poultry income-tax free?

No, the income from fisheries/poultry business are not income tax-free. Although they come under the agriculture allied activities they are taxable.

# Can one get a business loan for poultry farm?

Yes, starting a poultry farm is encouraged by the government and apart from the government scheme(MUNDRA), different banks also lend to the entrepreneurs. However, lending by banks is not collateral-free.

# Does banks provide loans to start the flour mill?

Flour mill is a good business and depending upon the risk profile of the entrepreneur, the banks do provide the loan. The flour mill comes under MSME sector and loans are easy to get.

# Is there any support provided by the government for organic farming?

Yes, in order to encourage organic farming in the country, the government provides the necessary assistance. In addition to NABARD, different other government schemes provide loans to farmers to grow organic crops.

Read More: Profitable Small Business Ideas for Small Towns/Tier 4 Cities

Read More: Hair & Beauty Salon Business Plan

Read More: How to Start a Home-Based Bakery Business

So, we hope that you enjoyed the article, and are maybe now inspired to start a business in a small town! We hope that we provided good business ideas for small towns. If you have any others you’d like to add, or even have started yourself, let us know in the comments below!

Living in a small town or village proudly, breathing fresh air, witnessing the natural beauty, and running your own business; that’s an ideal lifestyle. Get out there!


Vikas Ryan is an experienced Indian blogger. His passion is providing information to people in all aspects of Startup, Business, Internet Marketing and Books. He cover a wide range of niches, and share articles around Latest News and Articles.


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