Here’s How to Start a Company with Small Capital

At present, there are a bounty of small business opportunities available that aspiring entrepreneurs can start
  • BY Jaspreet Kaur

    Feature Writer, BusinessEx

  • |
  • Jul 01,2021
  • |
  • 11 Mins Read

The economy has shrunk, thus, resulting in a lack of business opportunities. Even though the Indian business market has reopened now, real normality has not been obtained yet. Companies are still grappling for survival, which has made the business landscape gloomy. This has begotten aspiring entrepreneurs to drop their dreams and put their business plans aside. 

According to a report by CEEW, the MSME sector, despite its rapid expansion in the past few years, was already in distress before the COVID-19 lockdown due to a perceived lack of creditworthiness. While short term relief measures are imperative to ease working capital constraints, the benefits of indiscriminate lending will be short-lived and only delay the inevitable nonperformance of assets.

At the moment, garnering thousands and millions of money for the business is daunting. However, one can easily start a business with a small amount of money. There is a bounty of small business opportunities available that aspiring entrepreneurs can start. If you are clueless and do not know how to start a business in India with small capital, then here is a step-by-step process. 

Business Opportunity 

There are a vast number of businesses that can be established at a considerably low cost. Such businesses are there in almost every segment. For instance, if you seek to initiate a food business with small capital, then you can start an ice cream parlor or Chinese fast food stall, or meat shop. Similarly, in the clothing industry, you can start low-cost businesses such as an undergarment business, or infant clothing store, or saree store.   

So, the first step involves ascertaining the right business that can be set up at a small capital. Following that, you have to learn how much required for the business is. 


After deciding on the business opportunities in india, you have to look for the capital required to invest in the business. If you have required saving for the business, then it is good, or else look for other investment options. Besides reaching family and kin, you can take financial aid from banks. In recent times, the government has established various programs for MSMEs. In addition, NBFC is facilitating entrepreneurs apart from banks. 

The loan process can be different from one financial institution to another. Therefore, the time for receiving a loan can vary. 


With the onset of the pandemic, the business industry has realized the importance of digitalization. Digital adoption has increased substantially in the last year, in turn, facilitating businesses to grow wider overcoming geographical barriers. 

New entrepreneurs should consider this and focus on establishing an online store rather than a physical store. By setting up an online store, they would be saving rent and remuneration of sales staff as the online store would be enough to render a satisfying retail experience. 

Follow these steps to effortlessly learn how to start a business in India with small capital. Various other steps are added as per the different business opportunities one chooses. 


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