Best Small Business Ideas for Rural Areas, Villages, Small Towns in India

Best Small Business Ideas for Rural Areas– Starting a business in a small town or in a village takes a lot of work and time to grow business so that it may be lucrative and sustainable, which is a task that is in itself very difficult. In some ways, it is similar to raising a small sapling into a fully grown-up tree. But doing this in a nation like India, is not so difficult enough, where the majority of the population lives in rural areas with infrastructure that are substantially different from that in cities. It presents an enormous challenge.

Read: Small Business Ideas with Low Investment Under 1 lakh

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The government’s initiative of Aatmanirbhar Bharat focuses on encouraging people to become economically and technologically independent. It inspires modern business people to take a chance and act assertively. The government’s effort is intended for small-town and village entrepreneurs as well as big-city entrepreneurs and has broad appeal.

More than 70% of people live in villages and small towns, thus there are greater prospects to launch new businesses in these places. The majority of enterprises in rural areas are dependent on agriculture or a related industry, either directly or indirectly. A business has certain needs and depends on a reliable infrastructure to succeed. You should use the rural locations which are filled with business prospects. 

Licenses Required for Small Business

The licenses required to run this business are.

  • GST registration
  • Trade license
  • MSME registration
  • ISC
  • Trademark and patent registration 

9 Best Small Business Ideas for Villages and Small Towns

The “Atmanirbhar Bharat” government effort has greatly increased start-up prospects for business owners in rural areas. In light of the situation in India, we are hesitant to invest our money in launching a firm. Nonetheless, those who cannot afford the costs and lifestyle of metropolitan living may benefit from beginning businesses in rural locations. Also, it is beneficial to the villagers who are uneducated and live in a farming community.

Many Small Business Ideas need very little investment. You can go for a loan or invest your own money. These are small-scale manufacturing units. This includes flour mills, oil mills, poultry, organic vegetables and fruit farming, threshing machine, etc. These businesses are very useful in rural surroundings. As in villages or in small towns space is not a big problem. Also, the raw materials are easily available there which saves the transportation and mediators expenses. Lets start to know 9 best Best Small Business Ideas for Rural Areas, Villages, and Small Towns in India

1- Cotton Buds Making 

The primary function of cotton buds, which are handheld devices comprised of two wads of cotton wrapped around each end of a short rod made of rolled paper, plastic, wood, etc., is to ensure cleanliness. Cotton buds have a huge market potential because they are now used by adults and children alike for cosmetic and cleaning purposes. Also, its growth has been facilitated by the expansion of its manufacturing horizon in terms of the quality of cotton and sticks utilized, size of cotton buds, etc

2- Jute Bags and other Home Design Items

The villagers are highly inventive when it comes to manufacturing purses, cotton chunnis, home design items, and many other things. Customers can be drawn in by offering these items at competitive prices, and you can even open an internet store to sell handmade goods to expand your market.

3- Dairy Farming

Because dairy farming has strong profit margins and is a daily-used item that never experiences a recession, it is regarded as one of the best rural businesses. The dairy farming company concept may be more profitable for you if you can picture yourself living in a farmer’s house.

Seldom do you encounter a collection of pure butter, paneer, ghee, or other milk products? Also, you might make a tidy profit by selling them in cities.

4- Floor Mill

The construction of a flour mill is an additional thought that may be worthwhile. There is no shortage of grain as a raw material for flour mills in rural areas, and people also don’t buy packaged flour from markets as frequently as they do in cities. 

If you grind other grains in addition to wheat, such as corn, oats, barley, and sorghum, as well as spices like turmeric and chili, etc., it is a highly feasible and lucrative company. 

The flour mill may profitably supply its goods to neighboring cities and towns as well. It is a good business that can be started and operated with little money but with a reliable electricity connection.

5- Oil Mill

Because everyone wants refined oil, organic oil, and other types, oil mills are a demanding industry. Moreover, oil mills are used to extract oil from many types of nuts, including soybean, mustard, and peanut. The most affordable and natural business idea is this one.

6- Making Disposable Utensils

Making waste at home and selling it at markets is a great choice. due to the demand for disposable glassware and plates at every local function. It would be the ideal low-investment start-up concept. Any family member may readily use a disposal-creating machine, which is a benefit.

7- Agarbatti Making

All homes, businesses, and temples require agarbatti. Because there is a market for this type of rural business, it can be profitable. Agarbatti is one of the few things that matter when beginning a new prayer practice. 

And the bare minimum of ingredients, including perfume, sandalwood oil, charcoal powder, and working people needed to make agarbatti. For a start-up, it may therefore be a great choice.

8- Candle Making

There is a vast market for aromatic decorative candles. Such candles are used for a variety of purposes, including decoration and religious purposes. A small-scale, part-time candle manufacturing business can be created. By showing advancements in candle production every other day, female businesses are leading this market.

9- Production of Aluminum Foil

Several businesses use aluminum foil in a variety of ways. Some of them are prescription medications, unitized tea, and coffee packaging, ready banquets, bakery goods, frozen fish and poultry, milk container lids, wine, lubricating oil, greases, powdered milk, confections and biscuits, photographic prints, gift robes, butter, margarine, and cigarettes. Aluminum foils are a permanent fixture.


Some businesses are home-based. In the initial stage, there is no need to go out for arranging any workplace. Only your skill is essential. These businesses include pickle making, papad, and vardi making, stitching work, auto repairing work, tutoring, etc. After becoming a well-established businessman you can go for an outside workspace. 

Only your skill of doing things, hard work, and your time and energy can make you a good entrepreneur. If the circumstances are favorable, starting a small business in a rural or village setting in India can be successful. 

If starting your own business has always been your desire, now is the moment to make it happen. There is something for everyone, regardless of what you choose to do, whether you launch a side business or quit your 9 to 5 work. Your skill set, your hobbies, and your available resources will influence the type of business you choose to start. I hope you enjoyed the post-Best Small Business Ideas for Rural Areas, Villages, and Small Towns in India. And also you can share the post with others thanks for reading.

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