Top 10 Small Business Ideas for Villages and Rural Areas in 2022

Charudath K Nair Charudath K Nair
Jan 5, 2022 8 min read
Top 10 Small Business Ideas for Villages and Rural Areas in 2022

A village can be a hub of opportunities for an entrepreneur. There are fewer people and more problems to be solved. If you’re settled in a village or got some money to invest, what better way to provide value than to start your own business? These ideas require relatively less investment and can be a great way to start earning locally. The initiative by the government, Atmanirbhar Bharat has only boosted the startup opportunities in rural areas.

Startups based on local problems and businesses usually do well in villages as they’re trusted by the locals. That being said, here are 10 small business ideas for villages that you can start right now:

1. Kirana/Retail Store
2. Rice/Wheat Mill
3. Organic food supplier
4. Oil Mill
5. Arts and Crafts Store
6. Meat Shop and Poultry
7. Handmade Soaps and Candles
8. Tutoring
9. Internet Cafe
10. E-commerce Store
FAQ

1. Kirana/Retail Store

Minimum Investment required for Kirana Store - Rs.5 lakhs – Rs.15 lakhs

Kirana/Retail Store
Kirana/Retail Store

Most people in a village have to make a trip to the city just to get essential supplies. This means that a journey has to be made simply to get what is needed for daily life. Even within the village the shops are mostly sparse and spread apart. Starting a Kirana store with essentials can be a well worth investment as people always prefer buying locally.

For getting essentials like dairy, everyday items, and groceries, it’s considered a blessing to have a good reliable retail store in the neighbourhood. Since you live there yourself, people are more likely to trust your business and buy your products.

Keep a standard for quality, inventory and supply chain. This will ensure that you get a steady flow of customers for years. A grocery shop can also be a storefront for many other businesses. Mobile recharge, DTH recharge, household items, etc. can be presented as well. This covid crisis proved that how Kirana stores can be a great investment, as when all the stores were shut retail stores were in great demand.

2. Rice/Wheat Mill

Minimum Investment required for Rice/Wheat Mill - Rs.10 Lakhs

Villages are almost certain to have rice plantations. Farmers normally depend on rice mills in the city to process their produce and this can get tedious over time. They have to pay for transportation and labour. Would you rather go to the city or prefer to get the job done in your village? Starting a rice mill business isn’t too much of an investment.

With the price for machines reducing, you just need a place to set it up and you’re good. Having a rice mill would enable villages to process their product from the village itself. By starting this business you’ll be doing the farmers a favour as well. A trustable mill to get the grains processed will always be welcomed by the people.

3. Organic Food Store

Minimum Investment required for Organic Food Store - Rs.10 Lakhs

If you’ve got the time or hobby to take care of plants then starting an organic food business might be the easiest and profitable business to start in your village. Fresh products are always high on value and in demand. Some people unknowingly grow enough organic vegetables in homes to start a small business. It doesn’t necessarily have to be a farm or large-scale produce.

Retail shops in cities nowadays have a separate section for organic produce. This is also one of those businesses that require the least investment. If you have some area to plant and time to look after the crops then it's just a little effort to turn it into a successful business.

4. Oil Mill

Minimum Investment required for Oil Mill - Rs.5 lakhs

Oil is essential to almost any cooking project. The prices are also rising ever so slightly without you knowing it. Some people would prefer to get natural oil with their own supplies. In villages, it's common for farmlands to have a considerable amount of coconut trees. Peanut, sunflower, and palm oils are products that people desire.

Starting an oil mill in a village enables its residence to convert products like coconuts into oils. These would normally be discarded and required oils would be bought. This means people wouldn’t have to travel to the city and they have access to it within the village itself. This does require you to buy the machines necessary but it's sure to be generating revenue soon as you start.


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5. Arts and Crafts Store

Minimum Investment required for Arts and Crafts Store - Rs.10 lakhs

This is certainly one of the more interesting and low investment business ideas on the list. If you’re talented in art or know someone that is, starting an arts and crafts store could be a great idea. Tourists often visit villages and are willing to pay to get well-crafted memorabilia locally.

It could be pretty pottery, handmade toys, fans, or even handmade jewellery. Although it requires some talent, to begin with, it's going to run smoothly as long as the place has visitors. Businesses like gift shops, tourist homes, and art stores are usually season-dependent. More people during the holidays will mean more sales. This is something to keep in mind while starting a business of this sort in rural areas.

6. Meat Shop and Poultry

Minimum Investment required for Meat Shop - Rs.5 lakhs – Rs.10 lakhs

In a survey, it was found that 98% of people prefer to buy essential products from a local store. This applies to meat shops as well. Being a mandatory part of the diet, people are meant to make this purchase. Nowadays shops like these sell all sorts of dairy products too. This can be a good business for anyone who sets it up in a rural area.

Butchers can be hired and poultry can be purchased from a farm. All it needs is good management and strict standards of quality. Once the sales start bumping up, you also have the choice to supply to nearby hotels and restaurants which can add to your source of income.

7. Handmade Soaps and Candles

Minimum Investment required for Handmade Soaps and Candles - Rs.1 Lakh

Another relatively easy-to-start small business is selling handmade soaps and candles. The craft requires no acquired skill and can be learned by another with time. People can be hired to work and eventually, your brand of handmade soaps can become a reality.

The same goes for candle-making. Handmade candles that are aromatic and cheap can sell fast. You can distribute your product with your own store or through other retailers within the area. Depending on how you perform, this is a scalable business.

8. Tutoring

Minimum Investment required for Tutoring - 0.5 - Rs.1 Lakh

Tutoring
Tutoring

If you’re qualified to teach or can hire teachers then starting a tutoring service in a small village is a great business idea. Schools in the area mean students who can use help with their studies. Math and Science are popular subjects for tutoring since students find it relatively difficult. With good intentions and a patient mindset, you can help out many children of all ages.

Like all businesses, if your services through an educational institute are good, it doesn’t take long before the place is crowded with students through word of mouth. Every year more students are in need and this means the business can sustain itself as long as you pay your bills.


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9. Internet Cafe

Minimum Investment required for Internet Cafe - Rs.10 lakhs – Rs.15 lakhs

Indian Villages are being transformed every day yet some places still lack basic internet connectivity. In a world where everything from booking tickets to paying taxes is done online, internet access is a must. If the village lacks this basic access then starting an internet cafe can be very profitable.

Cheap hourly prices along with photocopy and scanning will satisfy most needs of the people. In a village without this facility, they would have to travel to the city. This business does require some initial investment for the internet and computers but it will likely be a successful one.

10. E-commerce Store

Minimum Investment required for E-commerce Store - Rs.15 lakhs

E-commerce Store
E-commerce Store

No matter where you are if you’ve got a product or an idea the internet grants you a way to turn it into a business. The best part about this business route is the vast array of possibilities. It could be anything from a traditional clothing store to something different like earthen pottery. Technology makes it so easy to start up your online store in minutes.

If you’re new to e-commerce some of these platforms have guides to help you learn the ropes. You could have a store that sells a single unique product or multiple products. These products once online can be bought by anyone in the world if you choose. CMS software makes this process a lot easier. If you’ve already got a successful physical store in the village, getting an online storefront can breathe new life into your business and bring in more revenue. Customers will appreciate the convenience and take advantage of this facility faster than you realize.


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FAQ

Which business is most profitable in a village?

Poultry Farming, Milk centre, Flour Mills, and Drinking-Water Supply are some of the most profitable small business ideas in a village.

What are the most successful small businesses?

Cleaning, Social Media Management, Gardening, and Web Design are some of the most successful small businesses.

What business can I start in the village?

Milk Centre, Kirana Store, Electronics, Mobile and Accessories Store, Fertilizers & Seeds Storage Store, and Clothing Store are some of the businesses you can start in a village.

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