written by Khatabook | August 12, 2021

Best Small Business Ideas for Rural Areas, Indian Villages and Small Towns

Why is it easier to grow a start-up in villages compared to urban areas?

India, being a developing country, still has most of its population in rural areas. Compared to urban areas, business ideas in villages require less capital and less paperwork too. Most of the population of the rural regions are indulged in the agricultural sector, thereby increasing National Economic Growth. So it is easier in rural areas to grow a start-up more rapidly than in urban areas because the majority of people are known to you in your surroundings. There is a lot of small investment business in villages which you could easily try if you are interested in business and that too in your own locality.

What are the requirements before starting up a small business in a village?

The small business ideas in village include their own set of infrastructure and own set of needs. So before starting a business, you need to keep many things in mind, especially in rural areas. It would be best if you had proper investment for the village business so that you can cover the cost incurred in case you face any such issues. Having an adequate amount of infrastructure is a little challenging in rural areas, but before starting a small business in village you need to have the infrastructure ready.

Some of the ideas for best business in village areas are as follows:

1. Setting up a Poultry Farm

  • One of the business ideas in village includes setting up a poultry farm as it does not require a large capital. Instead, you can open a poultry farm on a small plot of land and rear the chicken up to a certain period of time, after which you can easily sell them off.
  • At the initial stage, start your business on a contractual basis with a vendor. You are just required to rear the chickens up as the vendor will provide you with the chicken as well as the food. After a period of time, you just have to sell them off either by the number of chickens or their weight.
  • Doing everything on your own at the beginning might be dangerous as it will require significant capital, and you will be left alone if you face any loss. So starting this business on a contractual business is advisory.

2. Opening a Milk Center

 Among all the business ideas in villages, opening a milking centre would be highly beneficial since the rearing of cows and buffalos is very common in villages. In the beginning, you need to contact a dairy farm and have a tie-up with them. Many dairy farms require milk in huge quantities, so it would be easier for you to sell the milk you have. 

Having a milking centre will attract the villagers to sell the milk of their cows or buffalos easily at a safer place. You just have to provide a proper place and a weighing machine to easily weigh the milk before collecting it from the villagers and before sending it to the dairy farm. Maintaining cleanliness is one thing to be kept in mind as a little negligence can spoil your milk.

You should maintain good relations with the customers and pay them on time to be loyal to you and not go to other milking centres if you have competitors in the future.

3. Wholesale of Fertilizers

As India has more occupations in the agricultural sector, opening a wholesale of fertiliser could be said to be the best business in the village area. 

Before opening it, you need to look out for any legal issues as a license might be required for your store. Chances of facing loss are rare as every person in a village might be an agriculturist, and the need for fertilizer never comes down.

You can easily have seeds stored in your store in a large quantity at a lower price and sell them at the market price, having a profit altogether.

4. Supply of Drinking Water

 Earlier, people used handpumps or wells in villages to get drinking water. But nowadays, with the increase of iron present in water, people are preferring water canes for drinking water. So supplying the water canes could be a more accessible business in the village.

It requires very little capital as you can start this business at your home also. The only thing that you need is a two-wheeler or a four-wheeler that carries luggage for providing door-to-door service. You can also go for the come-and-take policy if you are uncomfortable in supplying water at their doorsteps. You just have to charge extra for home delivery.

This small business in village will fl ourish as most people are known to you, and they will definitely take the water canes from you.

Also Read: Top 10 Business Ideas After Lockdown

5. Producing Organic Vegetables

With the use of fertilisers in large amounts, the demand for organic vegetables has increased a lot. So starting organic farming and selling it in the town market can be considered the best business in the village.

You have to hire a vendor at the beginning, as it will help you in reducing transportation and storage costs. This can prove to be helpful when you are new in Tamil Nadu and don’t have a clear idea about directions. 

Once you are well-settled in the marketing of organic farming, you can remove the middleman and become a direct supplier. With time, you would have acquired a storage area as well as a transportation service and would also have learned market trends and requirements.

6. Starting a Fishery Farm

In rural areas of India, fishery business is the type of business that will flourish easily as there is always a demand for fish, especially Rahu, Catfish, Hilish, and Mangur.

 It would help if you had sufficient area for a fishery business since fishery farms are common small business ideas in Tamil Nadu villages. You need to be very careful and have a close look at the fishes as one deceased fish might spoil other fishes as well. Do marketing as per the needs of the state. If the amount of fish is less, then you can sell them in the market yourself. But if the quantity is huge, you can export it as well. You can also rear fishes that are most in-demand in Tamil Nadu. 

7. Flower Farming

Flower farming is one of the small business ideas in Tamil Nadu villages. There is a huge demand for flowers in Tamil Nadu, so the idea of flower farming will definitely not go for a toss, and you can surely go for flower farming as a small business in Tamil Nadu villages.

It would help if you started slowly at the beginning, as this might allow you to get to know about the nuances of plant variety and your growing season. You can have a great income in flower farming as you can supply a variety of flowers for different occasions such as weddings, birthdays, and ornamental decorations.

In countries like India, flowers are in huge demand for religious purposes.

8. Opening a Flour Mill

 In small towns and villages of India, people are more interested in having raw stocks of wheat, maize, rice, and others rather than getting packet flour from the stores. So opening a flour mill is one of the village business ideas that will bring you a great profit. 

It is a low capital investment as you just require a machine that can grind wheat, maize, turmeric, chillies, and coriander. You can also have a machine that can be used for making flattened rice.

 The only thing to be kept in mind is to have a good electrical connection as it is a small investment business in villages. 

9. Getting a Threshing Machine

 If you have enough amount of capital, then getting a threshing machine could be one of the business ideas in rural areas. Having a tractor and seed drill machine proves to be more important. In an agricultural country like India, a tractor and threshing machine is always required, whether before or after the harvest of the crops. 

Having pumping sets for watering the fields could be an added advantage as it will get you all the required things and people will not go to others for different requirements.

10. Starting an Educational Institute

The state of education in rural areas is extremely poor, and starting an educational institute could be a great rural area business opportunity in India.

Children often find grammar and mathematics especially challenging among other subjects. Despite digitalisation, offline studies still have an important place. You have to prepare a good team of tutors. You should hire teachers who have specialisation over a particular subject and not the ones who consider themselves as the jack of all subjects.

Having great patience while teaching students is a must. Not every student desires to learn or is eager to study, but you must have the stamina to teach them patiently and not get angry at them when multiple questions arise.

Also Read: 15 Best Online Business Ideas to Start with Less Money 2021

Some of the other small investment business in villages include:

  • Pickles
  • Agarbattis
  • Candle Making
  • Disposable cups and plates
  • Jute bags, etc.


In conclusion, it can be said that there are multiple small business ideas for rural areas in India, and we just have to focus on the basic requirements of people residing in rural areas. Rural areas might lack digitalisation compared to urban areas, but the base of our economy depends upon the rural areas. Having a proper idea of the business that you are going to start up is a must. Calculate the actual amount of capital required for investing in your business and then go for it. Executing business ideas in villages requires proper strategy and planning. So, you need to be aware of such aspects and gather knowledge in order to establish a successful business in the state. 

We hope this article on small business ideas in Tamil Nadu Villages has been helpful in conveying ideas for opening the best business in village areas or village business in Tamil Nadu. 


1. What role does small business in villages play in the economy of India?

Small businesses in India are considered as the second employment provider after agriculture. The number of opportunities provided by small businesses per unit of capital invested is much higher than that of big corporations. And so it plays a vital role in generating employment in human resources.

2. What are the challenges faced by the owner of a small business?

Despite the growth and development of small enterprises, the owner of a small business in village area faces several problems. Some of the problems are noted below:

  • Lack of Raw Materials
  • Shortage of Power
  • Labour Crisis
  • Lack of Marketing Skills
  • Backward in Latest Technology, etc.

3. Which small investment business in village is more profitable?

Among all the other small businesses, there are some businesses that require very low investment, and are therefore more profitable. Some of them are:

  • Making Papad
  • Hair Band Manufacturing
  • Bridal Store
  • Making of Ginger Garlic Paste
  • Coconut Based Business

4. What are the requirements for the best business ideas in village?

To set up small businesses in villages, there are some requirements that you need to keep in mind. You need to have spare commodities of the business in stock always. Registering your business with the village administration or the local municipality is mandatory under Indian laws. Having a license of your business helps you flourish your business more efficiently and rapidly.

5. Which small business in village is best suitable for a country like India?

Grocery or Kirana Store is the most suitable business in small towns of a country like India. Every household requires groceries on a daily basis. So setting up a grocery store can never suffer loss, and hence it is considered the easiest small business in India. It requires low investment depending on the shop's location and is easily affordable by people in small towns and villages. 

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