Establishing Rural Startups In India

23 Feb 2022
7 min read

Post Highlight

The concept of Aatmanirbhar Bharat, as promoted and backed by the government, is to become technically and financially self-sufficient. It encourages new-generation entrepreneurs to take a chance and be bold in their approach to breaking the glass ceiling. The government's effort is not limited to big-city entrepreneurs. It has broad appeal and is intended for entrepreneurs in small towns and villages. #TWN


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With more than 70% of the people living in villages and small towns, these places offer more opportunities to establish new enterprises. Because the majority of enterprises in the rural hinterland are either directly or indirectly dependent on agriculture or a related industry, there are several options to explore and grow over time. This article by ThinkWithNiche discusses some fantastic rural business ideas that can be pursued full-time or as a sideline. It may be difficult to come up with company ideas if you live in a remote region. A large number of economic sectors that are easily accessible in metropolitan areas are not available in rural locations. The latter region's communities suffer issues that city inhabitants are unaware of. Everything is possible when imagination and acumen are present.

The state of education in India's rural areas is exceedingly poor, making it an ideal location for a start-up in Indian communities. Investment is always vital, but because the cost of materials and labor is much lower in villages than in cities, you can complete your construction at a much lesser cost. However, you must ensure that the educational quality is on par with that of developed cities' institutions. You will establish a strong sense of goodwill among your students and, in turn, their parents if you deliver excellent education. That is when they will spread the news about your institute to their family and friends, resulting in a snowball effect of students joining. When it comes to Indian villages, "Word of Mouth" is arguably the most effective form of advertisement for any small-scale business. It is one of the easiest and most profitable start-up ideas for Indian villages, as online instruction is also a possibility.

Farmers are the ones that populate villages, thus selling farming equipment and products is a logical choice for start-up ideas in Indian villages. Seeds, pesticides, farm animal food, fertilizers, and heavy farming machinery, to name a few, are all available. Purchasing these things from wholesalers will allow you to purchase them at significantly lower prices, allowing you to maintain a healthy profit margin. However, make certain that the things you sell are of the highest possible quality. Village communities like to stick together, so if you can cultivate a strong sense of goodwill, more farmers will begin purchasing their basic supplies from you. You can also take it a step further by showing the locals how to properly use a variety of products. For example, you could hand out leaflets demonstrating proper spraying practices for the insecticides and fertilizers customers purchase from you.

The development of a flour mill is another option worth considering. There is no shortage of raw material (cereal) for flour mills in rural areas, and people do not buy packaged flour from markets as they do in metropolitan areas. If you grind other grains like corn, oats, barley, sorghum, and spices like turmeric, chili, and other spices in addition to wheat, it's a highly viable and profitable company. The flour mill can also profitably supply products to adjacent cities and towns. It is a good business that requires little money to start but a solid electrical connection to run. Villagers frequently travel to big cities to buy garments for special occasions or everyday requirements. Starting a clothes store with good brands, fabrics, and diversity is a sure bet for success, as long as the entrepreneur has good relationships with garment suppliers and the supply chain is in good shape.

There will be a significant demand for your products in the villages and small towns if you can give the latest fashions, designs, and styles of clothing. At the store, you can also provide tailoring services and handcrafted items to your customers. The shortage of well-trained instructors in rural areas is a major issue, and opening a tutoring center with skilled teachers on staff could be a solid business concept. It will not only create work for qualified local youngsters, but it will also assist individuals in locating a reputable teaching institute for children closer to their homes. The business does not require a lot of funding or space, and it is a wonderful business option to investigate if you have the appropriate qualifications and expertise to run a center. The tutoring service can begin with a small staff but will expand over time.

Several goods are nearly impossible to find in villages. As a result, if you begin selling them, you will have a monopoly on all of that items' markets. These products could be a rare crop or grain, computerized and automated devices, and so forth. Villages in India are progressively growing, and with technological developments, they are seeing a lot of growth. Selling electrical items such as cell phones and computers, for example, can be a game-changer now that practically all Indian villages have electricity. As a result, all you have to do is figure out what these items' unique selling qualities are, and you'll be able to effortlessly build your business, especially if you supply high-quality products at low pricing.
Despite their unique set of challenges, Indian villages can be a great place to start a business. The first thing you should do before starting a business is figure out how much money you'll need to get started. You must also thoroughly examine the laws of the land and tertiary forces that will determine how much money you will need to start your business and how you must spend that money. You'll be able to determine which business opportunity to pursue your start-up once you've put those bits of information together. Businesses in Indian villages have a lot of promise; all you have to do is recognize it.

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