India is primarily a rural nation. With 70% of the country’s population residing in rural areas, there are a number of possibilities and business opportunities. These are the raw locations where the competition is fairly lesser and the profitability is higher. Doing business in small towns and villages has some downsides as well such as inadequate transport facilities, difficulty in finding skilled labour l but the pros outweigh the cons. It’s easier to get loans from banks for setting up business in underdeveloped areas.
A country that is still in its developing phase consists of a large population and most of the population resides in rural areas or places that are neither towns nor villages i.e. kind of small towns. These small towns and villages consist of people who are generally under-skilled or not skilled at all.
Agriculture is the primary source of generating livelihood in villages and the majority of the population is employed in the agricultural sector. There is a great scope for other industries to flourish in less developed areas.
Young entrepreneurs are specially willing to take risks and these locations can provide them with the chance of making the kind of growth that they want to. The Government of India is also taking necessary steps in the direction of increasing production activities in villages, rural areas and small towns. There are a lot of business ideas that can be explored in these areas, some of which are discussed below.
Small-Scale Manufacturing Units
Small businesses do not require hefty investment to set up and setting these businesses in rural areas can further cut down the cost of production. Small businesses cater to the needs of people in the village and the produce can also be supplied in nearby towns and cities. Products produced at lower cost can be sold at higher prices in urban areas to increase the profitability of the business. Local labour can be hired in to work in the production unit at relatively lower wages.
Some examples of the products that can be produced at small-scale are:
- Cotton pads
- Matchbox/ Incense Sticks/ Candles
- Packaging products
- Masks/ Disposable products
- Jute bags/Gloves
- Pickles etc.
Types of small scale manufacturing industries
Micro Industry
The businesses with investment of not more than Rs.25 lakhs come under this category. Some of the examples of the products that Micro industries manufacture are chocolates, water bottles, tissue paper, pens, toys, cotton pads etc.
Small scale industry
Firms and businesses with an investment of over Rs.25 lakhs but below 1 crore come under this category. These businesses typically produce products and services such as pickles, stationary, beauty parlours, bakeries etc.
Flour Mill
It is an excellent idea to open a flour meal in rural areas and small towns because there are a lot of year-round regular consumers there. There is little financial investment necessary, and labour is readily available. To increase revenues, the flour can also be sold to adjacent cities and villages.
Teaching Services
There is a good scope for educated youngsters in rural areas because there are very few teachers available and students have to go to nearby towns to take tuitions. Many students in these areas prepare for government examinations and for higher studies. There are a lot of opportunities for teachers in rural areas. Opening coaching centres in these areas can be highly profitable and can also generate employment by hiring teachers. These institutions can cater to the students of the villages as well as of the nearby towns.
Primary schools can also be opened in villages as there is a shortage of private educational institutions, it’ll improve the infrastructure of the village and will lead to overall development of the village.
Selling Farm Products
Entrepreneurs can purchase farm produce from farmers and sell it in the cities. Farmers often have two sell their produce to the middle man at lower prices and then the intermediate is salad in the market which reduces profit of the farmers. This produce can be purchased from farmers at a reasonable price and then sold in the urban areas. It’ll be beneficial to both farmers and the businessmen.
Medical and General Stores
People of the villages have to go to nearby towns to purchase essential items, opening stores that cater to the regular demand of the people can be a great business idea. Medical stores are very rare to find in villages, hence, the competition is lesser which increases the chances of business doing well.
Transportation Facilities
There is a lack of good infrastructure for transportation in villages, rural areas, and small towns. Providing an adequate mode of transport for the supply of form produce or for carrying out voyages is one of the top business ideas. Vehicles can be rented out in the beginning for setting up the business and depending on the profitability, the business can be expanded accordingly. Things that have to be kept in mind before starting the business is the infrastructure of roads, income of the people and affordability of the service.
Dairy Products and Poultry Farming
Another great idea is to do business in dairy products. There is an abundance of dairy animals in rural areas. Milk and other dairy products can be distributed in the dairies in nearby towns and even big cities. The purity of dairy products matters a lot to people in urban areas so they are ready to buy them at higher prices. Poultry farming can also be highly profitable for the entrepreneurs as the produced and less developed areas can then be supplied to small towns and even big cities. This business can reach heights if proper transportation is also made available. Sweet and dairy shops can also be open to generate even bigger revenue. This business has a great scope of doing well in the market.
Some of the business ideas that can be implemented are as follows:-
Open a Cloth Shop
No matter whether it’s a town or a village every place demands clothes. One person can open a cloth shop by putting in capital and start earning gains after a few times. The cloth shop can consist of different types of clothes such as bedsheets, ladies’ wear, menswear, and kid’s wear. The more explorable items available in the store better the consumer’s experience will be which will increase customers’ visits to the shop increasing the profits of the store. Also, the owner of the shop can hire people leading to employment generation and growth of the village.
Open Boutiques
People in every corner of the world or so-called hemisphere of the earth are attracted to visibly beautiful and pleasing things. Boutiques are places where the owner sells trendy and fashionable clothes or antique gifts for special people. People who are influenced by fashion eventually become addicted to fashion and try to copy the style they feel that looks good on others as well as on them. To cope with the expectations of the consumers one should provide them with the latest fashion and what they want to wear. People demand more of those goods they feel comfortable and beautiful in. Boutiques should try to get products that are economically sound to the consumers as fashion decreases when financial wealth drains more than expected.
Grooming salons
As clothes are essential for living, grooming is essential for living a neat and clean life and according to research more than majority of people likes to live in cleanliness instead of a mess. So it is very clear that if someone doesn’t want to live in a messed up, dirty surrounding, why would he/she like to live as a dirty person, who is not very well groomed with long hair and dirty nails. So learning the grooming skills and providing its services to the people help a lot to earn income and grow in life. There are several examples in the world where people became big men while practsing grooming. Hence, grooming is one of the best businesses that a person should start in a village or small town.
Fruits and Vegetables Shop
As other factors are important to live a life, food is considered to be the most important factor because a person can live without grooming or even clothes for a time but not without food. Also, people generally ask for fruits and vegetables in the market and it’s a necessity so one should open a fruits and vegetables shop in a village or small town. Fruits and vegetables are something which everyone consumes and life can not go along without that. People can get vegetables from different places and sell it in retail in the market or can take up a business for supplying the fruits and vegetables at a wholesale price to local vendors.
Conclusion
Villages and small towns are full of opportunities. Simply having a curious mind and the desire to improve things is enough. Setting up business in a rural location would not only be advantageous for the business owner, but it will also improve living conditions by creating jobs in underdeveloped areas. If people have year-round employment, they will be able to afford basic amenities and the education of their children. The nation’s and the economy’s general growth depends critically on job creation. Given that the majority of Indians live in underdeveloped areas, creating employment opportunities there is crucial.
Additionally, Prime Minister Narendra Modi’s Atmanirbhar Bharat initiative seeks to expand small businesses.
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