Moving from Small Towns or villages to bigger cities has been the norm since time immemorial owing to limited job opportunities in Indian small towns and villages. As per survey findings in India, 25-30 people migrates every minute towards big cities in search of jobs, livelihood, better income or better business opportunities owing to limited job opportunities in Indian small towns and villages. But due to the rapid growth of urban population both natural and through migration, many Cities in India are already under the pressure of overcrowding, urban air pollution, unbearable summer heat, water-logging problem, peak-hour traffic congestion, urban crimes and reduced living standards etc. Considering the unpleasant experiences of City Life, a growing number of people are choosing to move out of big cities either going back to their roots or moving to sparsely populated good small towns. Call it disillusionment with city life or the availability of better opportunities in smaller towns/ rural areas, ‘reverse migration’ is a trend that is slowly catching on in India.

India is among the emerging markets with huge potential in the fact that it offers a very large customer base to tap into as the population of India running into the billions. Such favourable business environment offers tremendous opportunities for entrepreneurs available in almost all sectors at initiation level as well as expansion level. Thus, entrepreneurial opportunity is becoming very popular among many and playing a big role in reverse migration in India.

Brick-and-Mortar Retail or Online? Service or Manufacturing? Consumer or Business-to-Business? Independent or Franchise ? There are dozens of different types of businesses, one can start. Following are the emerging trends of carrying business;

Network Marketing                                          Franchising

Business Process Outsourcing (BPO)            Aggregator

Knowledge Process Outsourcing (KPO)        Digital Economy

E-Commerce                                                       M-Commerce

Ease of Doing Business in India

The strong reform driven approach initiated by the Government of India in the recent past, has strengthened economic progress and even made the smaller cities and towns as the favourable breeding ground for the start-up ventures. The government is very passionate about facilitating the ease of doing business in India. With the addition of over 1,100 start-ups in the year 2019, India has continued to maintain its position as the third-largest start-up ecosystem in the world.

Small towns don't necessarily mean small business opportunities. The small towns constitute more than 60 percent of total number of towns in India. If you're able to launch a business that meets the needs of a small town while providing friendly service, a small-town business can become a successful and lucrative venture.

The Business Environment in Small Towns is characterised by following favourable situations:

1. Abundant natural resources including land, water, minerals and solar power as well as wind power.

2. Local Government extends supports and necessary infrastructure facilities like Commercial/Industrial Plot/ Industrial shed, Power, Water etc. are made available for a nominal charge.

3. Lower tax burden increases the competitive strength for starting a business.

4. Availability of labour particularly of semi-skilled and unskilled type is easy and wage rates are comparatively cheaper.

5. Small Towns are free from air pollution or are less polluted.

Benefits of Starting a Business in Small Towns

1. More Affordable To Start Up        

2. Networking Opportunities             

3. Less Competition

4. You Might Be Closer to The Raw Materials You Need

5. Community Support

6. An opportunity to Help the Economy of a Small Town

7. Better Quality of Life

8. Future Opportunities

Profitable Business Ideas for Small Towns

Small business ideas are those which can be started with low investment and make it as big. However, while some business ideas can be started anywhere, some business ideas are suitable only in Small Towns and Rural Areas. The most difficult thing when it comes to choosing businesses for small towns is to come up with an idea that will be easy and inexpensive to implement while also quickly generating profits. Small town businesses can be divided into following three main categories,

A) Retail Based;

B) Service Based and

C) Demand Based Manufacturing. 

A list of 50 Small Town Business Ideas has been presented in this E-Book for aspiring entrepreneurs of Small Towns/Rural Areas.

The presentation also supplements with useful information as indicated below;

LIST OF ENCLOSURES

ENCLOSURE-1: E-BOOK ON UPDATED SCHEMES FOR MSMEs (2023), MINISTRY OF MICRO, SMALL AND MEDIUM ENTERPRISES, GOVT. OF INDIA.

ENCLOSURE-2: E-BOOK ON PMFME SCHEME, MINISTRY OF FOOD PROCESSING INDUSTRIES, GOVT. OF INDIA.

ENCLOSURE-3: LATEST LIST OF “ONE DISTRICT ONE PRODUCT” (ODOP) FOR 713 DISTRICTS OF 35 STATES/UNION TERRITORIES UNDER PMFME SCHEME, MINISTRY OF FOOD PROCESSING INDUSTRIES, GOVT. OF INDIA.

Thus the information provided would help in identifying in advance the infrastructure/resources required for any business project and approach the concerned government agencies accordingly. Hence, it becomes a complete document for further action towards realising the dream of becoming an Entrepreneur.