/  Entrepreneurs   /  Top 5 Business Opportunities In Small Towns, Villages, And Rural Areas

Top 5 Business Opportunities In Small Towns, Villages, And Rural Areas

When we consider cities for business, metropolises like Delhi, Mumbai, Hyderabad, Pune, and Ahmedabad often spring to mind. Bangalore, Gurgaon, and Chennai are the standard allusions if the topic is technology. Businesses are not, however, limited to only these cities; far from it.

Small communities have an equal probability of giving you a great return on your investment and a profit. Additionally, given the dearth of such services in rural regions, those areas are automatically added to the list of locations where a new firm may succeed.

Investing in business initiatives may be a very lucrative possibility when you consider the sizeable population that lives in small towns and rural India. But while setting up camp, it will be important to consider supply and demand.

The Top 5 Business Concepts For Rural, Small Town, and Village Areas

  • Organic Items
  • Small-franchise
  • Beverage Plantations
  • Bakeries & Cafes
  • Leasing a location for an ATM

Listed below are a few company concepts that might be successful in small towns and rural locations based on the availability of resources, labour, convenience, and demand:

Organic Items

Typically, a field or luscious greenery is what comes to mind when people think about rural places in India. So it seems sense that our first choice for a business in a rural region is to produce organic materials. It makes sense and is lucrative to invest in a farm in a hamlet.

A potential farm also gives you access to reasonably priced labour, easy access to resources, and expert staff who are well-versed in the trade of farming and animal husbandry, as well as opening up a wide range of options in the form of dairy products, poultry, honey, and fresh fruits and vegetables.

The final products can be sent to sizable customer groups like cafes, fast-food restaurants, and grocery shops in adjacent cities or distributed locally. The demand for nutritious and fresh vegetables will only increase in the future is if current trend holds. As a result, there is a growing demand for organic products, and building a supply chain to match that need may be a highly lucrative endeavour.

Café & Bakery

both sweets and confetti. Wherever they go, regardless of the circumstance, they spread smiles. And above everything else, a satisfied client base is what any firm seeks. A excellent bakery is lacking in virtually all villages and most small towns. You can establish one with a minimal initial investment if you are uncertain of the need in your area and observe how the community responds.

On the other side, if you build a respectable bakery or café in a small town with comfortable seating, a welcoming atmosphere, and high-quality goods at reasonable costs, it will gradually begin to draw customers, especially when word gets out. Similar to this, you might choose to acquire a F&B franchise in order to play it safe. The next thing to think about is a little franchise after that.

Small franchise

Contrary to common belief, purchasing a franchise does not need a big investment. You have a wide range of somewhat smaller franchise alternatives to choose from, bearing in mind the local demographic and market need. Smaller fast-food juggernauts can have enormous success if they click, like The Burger Company Franchise, Giani’s Franchise, or even pharmacies like Sanjivani Franchise. A portion, particularly the young of small towns, aspire to lead the lives of their urban counterparts, and they will undoubtedly welcome the opportunity to include a recognisable brand into their daily lives.

Franchises might be readily acquired and set up for success at a time when all of the major realtors are working feverishly to create malls in the little towns of India. There are various franchise alternatives, and you may invest in one of India’s top 100 franchise company prospects, including those in the food and beverage, footwear and clothing, and beauty and wellness industries. When compared to the hectic metropolitan environment, cheaper raw material and labour expenses will also translate into larger profits. However, this only applies to small towns because it would be foolish to open a burger franchise in a town for obvious reasons.

Beverage Plantations

This line of work necessitates some technical know-how and much of local experience, primarily based on regional appropriateness. But if you do it well, it may end up being a goldmine. There will always be a need for tea and coffee, and the numerous cafes that operate in major cities require an endless supply of ingredients for their menus.

It may seem improbable to launch a coffee plantation firm in Karnataka or invest in a tea crop in the suburbs or villages of Assam. However, as is the situation with anything, if you are nearby and accessible to respond when necessary, this choice might prove to be a very fruitful business prospect indeed. Rest certain that you may get a respectable return on your money if you play your cards well.

Leasing a location for an ATM

We cannot dismiss the fact that people will always want cash, despite the fact that India’s digital drive may have been successful in creating digital payment systems as a breakthrough means of commerce. And in the circumstances of small towns and villages, this scenario is more obvious. Even though the majority of stores and businesses may have added new payment methods to their arsenal, many still prefer cash and are hesitant to take it. Some villagers don’t even trust mobile devices to transfer “money,” believing that cash is the only reliable form of payment.

Due to this, all large banks have begun extending their ATM networks to rural regions as well. Additionally, they are continually searching for locations to expand their network. Another duty that becomes noticeably less is the modest and low-key maintenance of ATM booths. Therefore, you may invest in leasing out ATM facilities in small towns or rural regions and earn a respectable living out of it with less capital outlay and considerably less anxiety.


In addition to these choices, a few additional outlandish suggestions that are either impractical or too onerous to implement in larger cities may also operate in smaller communities. There are many untapped markets in India, and wise investments and hard labour typically provide extremely sizable profit margins.

Small enterprises in small towns, not the Mumbais or Delhis, will ultimately determine how the general fitness of a financial nation appears as the digital age matures and startups and small firms grow to form the foundation of the economy. Please get in contact with us if you would want more information about intriguing franchise business prospects in India and related investments.

An engineer by qualification, Gaurav started his career in sales and marketing due to his affinity towards networking with people. After learning the tips and tricks of the trade, he made a fresh start as an entrepreneur in the franchising industry back in early 2018, with a vision to bring order and transparency to an unorganized sector. He founded and spearheaded Frankart Global Private Limited, where he consulted, developed, and scaled more than 120 domestic and international brands all over India ranging from different industries such as food & beverage, beauty & wellness, and FMCG retail to name a few. Post-Covid, in mid-2021, he developed FranDocX, India’s first ready-to-use franchise documentation service portal, for the MSME entrepreneurs who were severely affected by the pandemic, and wanted to avail an affordable franchise solution service. His aim is to regularize ethical business practices in the franchising sector so that a greater number of investors can participate and avail the benefits of a structured franchise framework.

You cannot copy content of this page