Although Tier 1 cities come first to our mind whenever we think of establishing a new business, small towns are no longer estranged from the changing times.

They are bustling with activities and can be a great spot for your new venture. Small towns have attracted many entrepreneurs with less competition, heap labour, and fair land prices. 

Tempted by the benefits but worrying about investment? We have heard you and come up with the 10 best low investment ideas to be set up in small towns. Businesses, although small, have the potential of growing as India leans towards the privatization of various small businesses.

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10 Best Business Ideas for Villages

Grocery stores

Though it sounds pretty common, it also has the highest rate of success. In the current pandemic period, when even gathering essentials has become a task, a new grocery store will be like a blessing for the people in the proximity of your store.

Some of the biggest advantages are the less time required to open it and readymade demand for your products. No matter how much industry changes, they will never vanish completely. 

With all these advantages, you must mention that this requires some initial capital. But don’t worry. You can apply for a business loan from companies such as Ziploan to get this required initial capital, and you are done. Your business is flourishing!

Grinding shops

Packaged products are not the usual sights in small towns like how they are in metropolitan cities. Plus, due to increasing complaints of adulteration in spices or flour, people want to see the whole process with their own eyes to ensure the safety of their loved ones.

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Furthermore, small towns usually have access to raw grains or spices, which will increase the chances of your business being successful. 

Although it requires comparatively less funding, an electric connection is a necessity. So choose your area of operation wisely.

Organic fruits and vegetables

In an agro-based economy like India, what can be a better Idea than farming? However, organic farming is different. It means producing crops without using fertilizers or pesticides to keep their original quality intact. The concept is slowly gaining ground in India, and this is a great idea for a business. 

But this one requires heavy investment because of machinery, land, labour. But no need to panic. You may get an MSME registration and opt for an MSME loan.

Agriculture raw material Store

We have already talked about farming. Under this point, why not focus on the raw materials instead of the finished product? Even after this increasing craze for organic farming, most farmers in our country still rely on fertilizers and pesticides to grow the required quantity of crops, and you can be their go-to shop for these two. Seeds can also be kept in your store.

Keep in mind that this venture requires a license and necessary permissions to be operated.

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Dairy products

Dairy products will never go out of fashion. It may change forms. For example, butter may change into cheese. But they will never go extinct. Moreover, dairy products enjoy a special fan base in small towns.

This industry can open many markets for you, ranging from households using them for personal use to restaurants for bulk sales. 

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Tutoring services

With the increasing awareness for education, especially among girls, everything related to the industry enjoys a special advantage. However, they still lack expert teachers in their areas. You can use this scarcity to your advantage.

You can gather experts in different fields under one roof, and your business is ready to start. Keep in mind that you require the necessary qualifications and skills to operate an education centre.  

Online education may appear to be a tough competitor, but nothing can replace in-person classroom teaching. This idea is mainly recommended due to its flexibility.

You may start with only 1 to 2 employees in a very small area and can keep increasing depending on the success, and it is also low capital investment. 

Manufacturing units

Some daily use, which we don’t pay much attention to, is the reason behind the riches of many entrepreneurs. Some such examples could be paper cups, agarbatti, matchsticks, candles, etc.

Such products have huge demand in rural and urban areas, and their raw materials are easily accessible in small towns. Hence you can consider this a great option. 

Clothing store

Small towns usually don’t have many such stores, or even if they have, the choices are limited. But in a festive country like India where we throw parties even for victory in cricket, some extra clothes are no less than a necessity.

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Hence, even though it sounds typical, this is one of the most desired businesses by the locals. To give an extra touch, you may take inspiration from the urban city designs and keep them in your to give you a competitive advantage over similar stores available there.


Grooming affects our confidence. Even though we can experiment with anything, we hesitate to do it with our faces or hair. We need professionals for that and look for the nearest salons.

It can be the key to your entry into the business world. Opening a unisex salon would be even better to gather more customers, but you can decide based on the available staff and capital.

Poultry and livestock breeding

The popularity of poultry products is increasing rapidly. Moreover, it requires less land and capital, and you can earn early interest. You can also sell it to nearby towns and cities to get more benefits along with the local market.

If you’ve already chosen the best option for you and want to give it a go but are hesitating because of the lack of funds, we’ve got you covered. We at Ziploan provide loans to small-scale businesses that also within days.

Don’t worry about the cibil score. Your goodwill will speak for itself. So get in touch with us immediately and set your foot in the business sector with confidence.


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