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Rural entrepreneurship needs a boost. And so, here I’m with a list of profitable small business ideas for villages, rural areas, and small towns in India, USA, Australia. To start these village business ideas you would need low investment to medium capital investment. You can start these village startup ideas in 2022 in any country.

The article has been written with India as the focus. But this should excite USA business enthusiasts as well. Because you can always invest in Indian village startup ideas, and earn filthy money doing almost nothing.

By the way, following are the small business ideas for villages & rural areas that I would be discussing with you in this insight:

  1. Paper manufacturing
  2. Paneer manufacturing
  3. Peanut butter
  4. Cold storage
  5. Clothing business
  6. Milk center
  7. Labor supply services
  8. Hyperlocal micro-loan business
  9. Agricultural loan consultancy

And don’t miss the 24 more village business ideas shared at the end of this collection. Do drop a comment with your thoughts, or if you have any additional village startup ideas that you seek feedback on.

By the way, why am I sharing small business ideas for villages in India?

Rural development with entrepreneurship

Rural development

  • e-Shram portal, farm laws, infrastructure development for border areas, Government of India’s commitment of 9800 Crores for livestock sector, electrification of villages, draft scheme for 25 jobs in every tribal village are all aimed at rural development in India. And can you imagine rural development until a lot of village startup ideas take off a success flight?
  • All initiatives by governments are good yet not sufficient to ensure development of Indian villages. Villages need small-scale businesses & startups to thrive and match up the lifestyle of metro cities.

We need village startup ideas and rural entrepreneurship

  • Also, we need more women entrepreneurs in villages who can pursue village startup ideas. And so, I’m sharing village business ideas to startup in rural areas of small towns in India which are women friendly as well. Also, I’ve shared some really good business ideas for women which can be pursued from home. Do check them out.
  • As an entrepreneur, you can contribute to the development of the rural areas in India by pursuing small scale businesses ideas in villages & small towns. This will create job opportunities for talent in rural areas.
  • Pursuing village business ideas, and village startup ideas would also help assist create more jobs for unemployed youths in the nearby small towns and their rural areas.

This list of business ideas and opportunities is not the only one that we have. You can explore some really good startup & small business ideas that passionate entrepreneurs can consider starting in rural areas with good connectivity in India. Decide on one small village business idea that you are gonna chase, and go mad after it.

Sounds sensible?

The need for rural entrepreneurship and business ideas for villages!

chase your dreams start rural business

chase your dreams

To make villages prosper, we need to dilute the employment gap between towns and villages in India. And, entrepreneurship is the only way forward. What do I mean? Economy in Indian villages seems very still, stagnant.

By starting small scale business ideas in villages and remote rural areas or locations of India, you too can stimulate growth at your end. Recently, we have also observed a spurt in village startup ideas which are innovative and helps improve rural connectivity, education, healthcare, and quality of life.

Let’s say,

  • you startup something in the food processing vertical in your village, or
  • launch education business ideas in the small town near your village, or
  • you pursue poultry farming business right in your village, or
  • setup garments, footwear manufacturing unit in a small town or
  • you launch an online services business from rural areas, or
  • start dairy collection and distribution or a dairy franchise business, or lastly,
  • you get into fisheries sector related village business ideas.

What would happen?

Yes, more jobs.

So, carefully assess each of the village business ideas that I’ve shared in this list of small scale business ideas for rural areas in India. If your village is already home to some of these startup businesses or opportunities that I mention, then you can look for opportunities in nearby villages, small towns, or any rural area across India. After all, we have around 600k+ villages in India. By the way, you can also start home based business ideas from your village, if you are interested.

Village business ideas to startup in India in 2022 (low investment)

I’ve seen across many websites, people write random village business ideas & village startup ideas and claim them to be the most profitable small town business ideas in India.

I am also disheartened at times to find out that some of the opportunities that are shared as top business ideas in village won’t even succeed in a rural setup in the first place.

  • You cannot start a fashion store in a village. It might fail in a typical village in India due to zero demand. But a fashion store startup idea would be a great fit for a sub-urban area i.e., it is perfect small business idea for small towns in India.
  • You might not like it, but let me tell you this straightforward, small scale village business ideas with highest margin might not be the most profitable village startup ideas.
  • In fact, village business ideas which are very profitable for someone might not be equally profitable for you.
  • Jio is profitable, but Voda-Idea, we know they are suffering.
  • Small business ideas for villages and rural areas need to be executable as well.
  • If you are passionate to pursue village startup ideas, they need to have market demand as well.

A very innovative product or service no one needs is useless.

Because I understand these things, so, you won’t find any fantasy village startup ideas in this list of business ideas for villages in India. I’ve tried my best to only include those profitable village business ideas which would work in rural areas or small towns.

So, you would find me talking about-

  • Ideas that can be run as a part-time business in village as majority are in agriculture as well,
  • Wholesale business ideas in village area, and
  • Manufacturing business ideas for rural areas in India that can be started with low investment, or maybe mid-level investment.

Now, let’s explore the list of 33+ small scale business ideas for a small village, rural areas, or small towns in India.

1. Paper manufacturing unit, perfect business idea for villages around heavy forestation

paper manufacturing village business ideas

paper manufacturing business

Start a small scale paper manufacturing business in your village. Paper recycling venture is a profitable small scale business idea for villages in India. In fact, it’s one of the village business ideas that can be pursued with low investment and high profit yield. This can also be pursued as wholesale business ideas in village area.

  • Gujrat, West Bengal, Orissa, Andhra together produce the majority of paper in India.
  • UP & TN (Uttar Pradesh, Tamilnadu), Haryana, Kerala, Bihar, Assam, too contribute to paper production in India.

And so, my recommendation is that if possible, consider kicking off this village business idea in rural areas of aforementioned states.

How do you get started with small scale paper manufacturing business ideas for villages & rural areas in India?

First, you have to decide on what exactly you’re going to manufacture. This is because within the paper manufacturing business there are several niches. For example:

  • paper plates with laminated silver sheet,
  • tissue paper,
  • shopping bags,
  • toilet paper,
  • paper boards,
  • soap coated paper,
  • cartoon boxes, or
  • decoration sheets.

Once you have decided the manufacturing niche, you can set up suitable paper manufacturing plants in your village or small town.

The above niches could themselves be unique manufacturing business ideas for villages in India. What if you’re not in a locality with good forestation and face difficulty sourcing raw-materials for your paper manufacturing business idea in your village?

An alternative small town business idea is the paper recycling business. You can source waste papers and get into paper recycling business in a small town near your village. This way you can stay close to your village while fuel-up your village startup dreams as well 😉 You can resell this recycled paper by launching a paper wholesale store.

Hah! This got to be twin opportunity i..e, wholesale business ideas in village area & manufacturing business ideas for rural areas.

Talking of manufacturing, do check out our list of manufacturing business ideas. Also, if you’re a foodie, you can check our collection of food business ideas. Wait, how about we discuss a few food related small business ideas for rural areas, villages, and small towns?

2. Paneer manufacturing village business ideas in India in 2022

Paneer manufacturing village business ideas

Paneer manufacturing

How about going after small scale paneer manufacturing business ideas in your village area?

  • Dairy products export business would be too large a business to start from village areas. While fruit exports could be among good village startup ideas, but dairy… umm… not so sensible.
  • But pursuing Paneer manufacturing business ideas in a village in India to sell to the nearby markets is pretty easy, and feasible.
  • Okay, not easy but feasible 😛

In the article, where we spoke of unique business ideas in India, we mentioned the whey protein manufacturing business idea. If you read that unique business ideas article, you would remember I guess that,

Whey protein is a by-product of the Paneer manufacturing process.

  • Indian villages and small towns are home to 300 Million Cattle, Buffalo, Mithun, and Yak. Crazy!
  • We don’t just have human population but of cattles as well.
  • As a result, we are a leading producer of Milk in the world with 190+ million tonnes production.
  • UAE has been one of the leading importers of dairy products from India.
  • Dairy related exports from India include Meat & Beef as well. Yes!

Why this might be a really good profitable small scale business ideas for villages in India?

Villages in India already have so many farmers who parallely have a small scale dairy business as well, then what new am I proposing here?

  • Large scale milk factories in India pay farmers at a meagre rate of Rs 30 to Rs 40 and sell the same milk at Rs 48 – Rs 56 per litre.
  • The quality of the packaged Milk is not even close to organically produced raw pure milk. I feel Paneer manufacturing is a good small scale business idea for villages in India.
  • If you do well in this, you can think of dairy based village startup ideas as well.
  • If you dwell from a village where villagers are actively keeping cattle to produce milk then you can source milk from them.
  • And set up a small scale paneer manufacturing village business to process the collected milk.
  • Pack it well, supply this to nearby towns.

And if you could get a license from FSSAI for distributing packaged paneer that would be more amazing. If this is possible, you can shape your paneer manufacturing gig into one of the unicorn village startup ideas. Then you can supply the fresh produced paneer from your manufacturing plant in the village to top tier 1 and tier 2 cities close to your village area. 5–6 Litres of Buffalo or Cow milk will produce 1 KG of paneer. And 1KG paneer is sold at Rs 400/KG in India. i.e., raw materials of Rs 150, product of Rs 400. 150% Margin. Even if half of that margin amount goes into operational costs, you would still be highly profitable. This is definitely one of the best small town business ideas in India in 2022. You must consider this if you’re on hunt for village business ideas.

Find some other highly profitable business ideas to start in 2022.

3. Peanut butter manufacturing, CPG based village startup ideas

Peanut butter manufacturing village business ideas

Peanut butter manufacturing

You can buy one machine and start a small scale peanut butter manufacturing business in your village in India. One of the products that I don’t like to taste, but I consume a lot. Soyabean is another such product, which I kinda don’t like but eat a lot.


  • Peanut butter manufacturing is one of the best profitable fitness and food related small scale business ideas for villages, rural areas, small towns in India in 2022.
  • The demand for the product is huge in cities but it’s cheap and better to manufacture in village areas. This helps boost village entrepreneurship while keeping low costs.
  • These two are amazing sources of good protein.
  • Peanuts in-fact are good sources of fat too, but yeah – both peanuts and soyabean should be consumed in limited amounts. Excess of anything is bad.
  • Peanut butters are highly popular among gym hitting guys and girls too. Packaged peanut butter is among top village startup ideas.
  • And it is one of the butters which doesn’t really need any preservatives, so it’s free from chemicals too and can be stored in glass or plastic jars for a good amount of time.

How to start peanut manufacturing business in rural areas of India? Is your village a production hub for peanuts?

  • With investments of barely 1-2 Lakhs, you can start a peanut butter manufacturing business in your village.
  • This is one of the village business ideas that is more suited for Gujarat, Maharashtra, and Andhra Pradesh as these states are major producers of peanuts in India.

Reach out to me for the detailed peanut butter manufacturing process and guidance on setting up the same in your village area. Also, do send out to me your peanut butter brand sprouting out of the village. I’ll definitely try it, just one request – don’t add any flavors or sweetener. I like it raw.

But how do you source peanuts round the year from your village area? Isn’t peanuts a seasonal product?

Yes, it’s produced during rabi and kharif seasons, but not in the zaid season. 85% of the peanut production is in the June – October season. But you can find it in ample quantities round the clock. 

You can sell these online on eCommerce platform. You can start your own eCommerce website/app as well. By the way, did you check our collection of eCommerce business ideas? We also have a separate list of online business ideas.

Any guesses, how? Next village business idea is the hint.

4. Cold storage business ideas in villages and rural areas of India

Cold storage village business ideas

Cold storage

  • This business idea for villages in India needs medium capital investment.
  • This is good for Indian villages which engage in agricultural activity.
  • Cold storage as the name goes enables you to store crops and fruits at a temperature of your choice.
  • This is to minimize the risk of getting the crops/produce damaged.
  • Damage is minimum in cold storage and farmers get an extended shelf life for such products to adequately market and sell it at high prices.

Does this small business idea for villages has any real demand?

I personally hate it when I get fruits produced in the previous season marketed as fresh. You can discover that it’s not fresh either due to loss of aroma or degraded taste. But farmers earn good money – so it’s acceptable to me. But it should not turn into greed. Village startup ideas must be sustainable and responsible. They must be highly regulated as well because most of these village businesses would be in FMCG & Food space. 

Anyways, cold storage business ideas for villages are good when the production of a crop or fruit exceeds the market demand.

People tend to bargain low rates in such situations but they fail to understand that the farmer had already invested the money and they can’t lower the rates any further.

In such situations, if farmers store the produce in a cold storage it helps in controlling the market rates. But this too gets mis-utilised by certain people who end up hoarding harvests to make the prices go up.

Email me, if you need more details on starting a small scale cold storage business idea in villages.

Check this mega collection of 71 best business ideas to start in India in 2022.

5. Clothing & apparels business ideas in village areas

Clothing & apparels business ideas in villages

Clothing & apparels

This is an already popular business idea in villages. Clothing related village startup ideas holds huge potential for small towns of India.

  • There are a lot of handloom and powerloom clusters across the country in semi-urban areas.
  • Small towns with fabrics weaving machines have been a major employer for a lot of village labourers.
  • These clusters make raw fabrics available and accessible to village people too. In the states of West Bengal, Tamilnadu, Andhra, Maharashtra, UP, Haryana, Delhi, Bihar, Sikkim, Odisha, Madhya Pradesh – textile is a major job creator.

What can you do to pursue clothing business ideas from your village?

  • You can start a clothing and apparel related business ideas in your village or a small town near your business.
  • The easiest one is starting a franchise business idea in your village for a brand.
  • Clothing stores also qualify as best wholesale business ideas in village area.
  • If that doesn’t suit your taste, you can source raw-materials like fabrics, buttons, etcetera and stitch your own garments, give it your brand tag, and sell it on Amazon, Flipkart, Meesho, eBay, etcetera.
  • This idea is great for village women who have a great craft for weaving sweaters for their kids.  

If you’re a women, or know a woman who should launch her business, share with her this list of business ideas for women. You can also share with them kids-related business ideas if they want to specifically target kids and their parents as customers.

6. Milk centre – Indian villages could be dairy startup hub

dairy village business ideas

dairy business

This is one of the easiest village business ideas. While sharing my views on the second business idea, I said opening just a Milk centre is not as profitable a business idea in villages as processing the milk to produce paneer and whey protein. But it is still profitable, right? 

Small scale dairy is a low investment, ‘okay-okay profitable’ business idea for villages!

  • I would consider it in village businesses with low investment and small profits. But it is doable. I don’t recommend limiting yourself to just milk centres but if you could do it at scale – this would be amazing.
  • You can take a franchise of Sudha in your village or its competitor to provide them the milk so that they can package it and sell in the market with high profits while you do all the labor work.

Yes, I am not going to appreciate your decision to stay small and marginally profitable. When you’re pursuing business ideas in village, eye for the entire 600k+ rural areas of India.

‘Be safe, but dream big’ is what I want you to learn. Of-course, setbacks and vulnerability are sisters of business and entrepreneurship, but they can be taken care of.

Talking of small scale business ideas for villages, another one in small town business ideas which doesn’t require you to have any special talent or skill is starting a grocery wholesale business in a village.

Find more retail business ideas for you to start in 2022. Or you can venture into bulk sales with these wholesale business ideas.

7. Labor supply small town business ideas in India

Labor supply business ideas for village & rural areas

Labor supply business

A perfect small town business idea to start out of a village.

Agriculture is a business that has extra people working on fields than required. But people do not want to be engaged in agriculture anymore. 

How about the product-market fit factor for this village business idea?

  • A research said that 75% of people in agriculture do not want to continue in it and only one percent 1% of the youth want to join the agri sector. Now you know why people are gaga over small town business ideas. It’s hope for them for a better and convenient life.
  • Youth want to exit agri sector, where do they want to shift? They want to earn equal or more money by doing less hard work.
  • Agriculture is a labor intensive industry and demands a huge amount of physical work, right?
  • People are shifting to construction business, apparel factories, and retail stores or security services, or transport vehicle drivers. And all these sectors have very low employee retention rates while finding good employees is a big headache. 
  • This is an opportunity that you can bridge – provide labor or talent to those who need them in cities and earn commission from both parties.
  • If you have good reach in multiple villages then this could be one of the really good profitable business ideas for you.
  • Be the go to guy for labor supply. It’s one of the great small town business ideas.

8. Hyperlocal micro-loan services business ideas in Indian villages

Loan services business ideas in Villages

Loan services business

This could be one of the high-impact business ideas for villages and small towns.

Actually, this would fall under village startup ideas category.

But that doesn’t matter.

  • What matters is entrepreneurship, jobs, profits, and freedom 😉
  • Micro-loan or micro-lending business ideas in village involves institutions offering loans at a very competitive rate of interest.
  • Such loans mostly cater to the ill-served business community which does not have great financial records.
  • These can also fall under impact village startup ideas in 2022.

Is this business idea for villages executable?

  • Micro-lending business ideas for villages would be very good as most farmers here need additional support and stimuli.
  • Even the small businesses in the village at times need micro-loan to further grow their business.
  • How do you start micro-loan small business ideas in village area?
  • Are there any banking related regulations and licenses that are required for finance related small scale business ideas in village area?
  • How do you recover loans?
  • Are micro-loans the same as peer to peer lending.

Find details to all these questions in the dedicated article on starting a micro-loan business in India.

Find more startup business ideas.

9. Agricultural loan consultancy village business ideas in 2022

Agricultural loan consultancy business ideas for villages & rural areas

Agricultural loan consultancy

Talking of financial business ideas for villages in India, how can I not talk about agricultural loans small town business ideas? This could be one of the many village startup ideas in the finTech. The Government of India has several agricultural schemes in place to support the farmers of the nation. These are mostly called farmers loans. 

Would such consultancy business ideas for villages, rural areas, small towns work?

  • Farmers don’t have the technical know how of the financial world.
  • And so, they need consultants to help them crack the best deal with loan issuing agencies.
  • That’s exactly what this business idea for villages is about!
  • You can think of starting agricultural loan small town business ideas as consultancy services in villages of India.
  • You can find all details about agricultural loans in your locality and make a website about the same in the local language so that everyone can access it.
  • If you work as a loan facilitator, you can earn good income in terms of loan sanction commission.
  • Usually the commissions are in the range 1%-2%.

Looking for more services focused opportunities & small town business ideas? Did you check our list of marketing business ideas?

Is that all..? Nope… here’s the complete list of business ideas for villages, rural areas, small towns

Nope. Those were our top 9 picks for business ideas for villages that you can consider starting in rural areas in India. There are a few other small scale village business ideas for you. You can pursue these small town business ideas in any state of India. Find below the list of 24 village business ideas which are suitable for rural areas and that also have potential to get scaled to multiple small towns as well.

More village business ideas to try in India

  1. Start a grocery wholesale business
  2. Open a agricultural land renting business
  3. Launch fertilizers wholesale business
  4. Start a e-rickshaw transportation business
  5. Startup a jute bag making business
  6. Set up a small scale slipper or flip flop making business
  7. Open a fruits and vegetable shop
  8. Start a small scale purified-drinking-water business
  9. Set up a stationery shop
  10. Open a private primary or secondary school
  11. Consider opening a mobile repairing store
  12. You may also launch a laptop retailing and repairing store
  13. Start food/fruit export/import business
  14. Anothe good opportunity for villages is a cattle food product wholesale business
  15. Start a brick manufacturing business
  16. With low investments start a small scale candle making business
  17. You can also start a small scale handmade cotton bus manufacturing business
  18. Startup a grocery home delivery business
  19. Start a medicine shop
  20. Open a flour/atta or oil mill
  21. Start farmer consultancy business
  22. Become a tuition/coaching entrepreneur
  23. Enter into computer training business
  24. Start a salon business
  25. Paper manufacturing unit
  26. Paneer manufacturing business
  27. Peanut butter manufacturing
  28. Cold storage
  29. Clothing & apparels business
  30. Milk center
  31. Labor supply services
  32. Hyperlocal micro-loan business
  33. Agricultural loan consultancy

Hope you liked the article, support GrowthRomeo on Patreon and help me keep pushing good business ideas for villages & rural areas. I would like to bid adieu from this insight and leave you with 277+ business ideas list 😉

Tada, Nishant.

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Which business is most profitable in village?

The most profitable businesses in villages & rural areas:

  • Dairy business
  • Flour & oil mills
  • Chimneys
  • Cattle food
  • Food exports
  • Agriculture
  • Paper recycling
  • Labour supply services
  • Loan consultancy

Which business is best in village?

The best business in villages & small towns of India:

  • Hand woven garments unit
  • Dairy by-products like protein manufacturing
  • Labor services
  • Retail store
  • Medical store
  • Local transport
  • Last mile logistics
  • skills & training business

Which franchise is best in village?

Top franchise business ideas in villages & small towns and rural areas of India:

  • Dairy franchise
  • Skill training center franchise
  • Wholesale distribution related franchise
  • Medicine distribution outlet franchise
  • Logistics services franchise
  • Micro-loan services franchise
  • School franchise
  • electric vehicles franchise
Nishant Choudhary

Nishant is a content marketing consultant for startups & SMEs. He writes about MarTech & business growth. Also an avid book reader, skater, pyjama lover, and traveller.

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