6 Businesses That Work in Tier-2 Cities and Rural Setup

In the fast-moving world, entrepreneurs residing in small towns and rural cities find it difficult to ascertain business ideas as per the demands.
  • BY Jaspreet Kaur

    Feature Writer, BusinessEx

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  • Sep 18,2020
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  • 17 Mins Read

An urban lifestyle is totally different from a village's lifestyle. Opulence and convenience that are experienced in metropolitan cities are rare to find in tier-2 cities and rural areas. The same follows with businesses that are carried out in urban cities and tier-2 cities and rural setup. As opposed to small towns and villages, businesses require a lot of financial backing in the urban cities. They have to face cut-throat competition in large cities, which is not severe in small cities. 

Regardless of place and capital, many people think of starting a business in small towns and rural areas as well. They primarily do not have the right knowledge and thus, fail to assess every business idea. Here is a list of small businesses ideas for small towns and rural areas that are viable and ensure business growth

Festival Store 

India has a slew of festivals that are celebrated throughout the year. Celebration starts from Sankranti in January and ends with Christmas in December. Thus, celebration goes in the country irrespective of seasons. As the country has tied various religions together and become a secular nation, people buy religious items and other allied commodities every now and then. For this, they have to visit various convenience stores or departmental stores to collect different items needed for religious ceremonies.

Seeing this demand gap, an aspiring entrepreneur can establish a festival store. The store can  sell all items that are prerequisite in festivals and pujas. It will become easier for the general masses to find every festival-related item at one stop. To carry out this business, one needs to infuse INR 1- 2 lakh and has to develop connections with various vendors.

Doorstep Delivery Business 

Similar to urban cities, demographic residing in tier-2 cities and rural areas seek convenience in their daily life. However, there are less companies that cater to the customers' demand in small towns and villages. Taking this cue, an entrepreneur can start a doorstep delivery business wherein he can begin selling grocery and other essential items. 

It will be one of the successful business ideas for rural areas and small towns. An entrepreneur has to develop a website and an application to start the business digitally. He also has to employ helpers to deliver commodities in every nook and corner of cities as well as villages. Regardless of the pandemic, this business will continue to grow in the near future. 

Coaching Center

Education is paramount in the lives of people residing in tier-2 cities and small towns. It helps them to hop over societal obstacles and lead a good life. To clear entrance exams like banking exams, management exams and medical exams, students migrate from small towns and villages to bigger cities. 

To stop this migration, an entrepreneur can establish a coaching center in his respective place. In the center, he can employ various experienced teachers and create a syllabus as per the examination. In this way, students can get assistance in clearing undergraduate and postgraduate examinations. To establish this business, one needs to invest INR 5-8 lakh that will include infrastructure, resources and other allied cost.

Beauty Salon 

Every individual seeks a dapper appearance whether he is going for parties or to monotonous office. Similar to the office, keeping one's skin healthy is important. For that, one can establish beauty salons in the region. Beauty salon is one of the best small business ideas for small towns and rural areas. 

To establish this business, one needs to have knowledge and connections in the beauty and wellness industry. Following this, one has to infuse nearly INR 3-5 lakh in establishing the business which comprises rental cost, equipment, furniture, beauty products and trained staff. 

Microfinance Business 

In small towns and villages, people do not have enough monetary resources. Despite a family business or a good job, an individual may require money in an uneventful time. Though, banks are present in each and every region of the country, they do not disburse loans easily. Taking personal loans from banks is also a tedious process. 

Therefore, an individual having an experience in the finance industry can establish a microfinance company. A microfinance firm helps people who require small amount loans. It makes loan disbursement process easy and swift. Furthermore, a borrower does not have to go through a long documentation process while dealing with a microfinance company. 

Drinking Water Supply Business 

Water is one of the basic amenities of every individual. With the increasing pollution, everyone seeks safe, affordable drinking water. Nowadays, people are no more consuming water coming from taps and hand pumps directly. They have understood the importance of fresh, mineral water and thus, they purchase water canes from outside. 

Seeing the demand for drinking water, one can establish this business. It is one of the increasing small business ideas in rural areas and small towns. To establish this business, one has to invest INR 2-3 lakh. Firstly, one has to get a water connection and then, buy a water canes to supply water nearby. Besides supplying the water, one can open a shop and ask customers to take water canes from there. 

In the fast-moving world, entrepreneurs residing in small towns and villages find it difficult to ascertain business ideas as per the demands. They are invariably in search of low-cost, yielding business ideas in small towns and rural areas. The shared business ideas are suitable and meet their budget as well as needs. They also provide business security to the entrepreneur in adversities. 

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