20 Best Small Business Ideas in Small Towns with low investment

Small business ideas is where one can start with low investment and make it as big. However, while some business ideas can be started anywhere, some business ideas can be started only in towns and cities. There are few small business ideas which can be started in small towns or villages which are profitable too. Which are the best small business ideas that can be started in small towns? Which are the small town small business ideas that can be started with low investment for higher profits.

Also Read: Top 100 Small Business Ideas with Low Investment

Overview about Best Small Business Ideas in Small Towns

It is so true that with increasing expenditures and standard of living people now need a work on their own to sustain with the current standard of living and eventually grow. Startups are yet another opportunity, which are booming up like never before. As the pain points are increasing in the society, the ways and means to cater to these pain points and add value to the customer preference is what makes a business flourish.

Consumers and catering to their needs are the reasons for any business to flourish or fail. Small business does not really mean a small business; it might be the small seed for a giant business, which might eventually grow. If we talk about a small town and small businesses, there are innumerable ideas, which can get them good money, and eventually the brand, which can help them grow to nearby, places also.  Small business has no clear definition. However, for the purpose of this article, I would be restricting the investment to RS 10000- RS 100000. A few of the lucrative small-scale business ideas with low investment will be discussed in this article. These are listed below:

20 Best Small Business Ideas in Small Towns

#1 – Idea: Juice Kiosk/ Ice cream shop

Minimum investment: This amount differs from Rs 25,000 to Rs 25,00,000

How it is suitable in small towns: It is one of the best ventures to be started in a small town. Juice kiosks or ice parlors might range from a basic store to an air-conditioned parlor. However, a proper cost-benefit analysis should be done to make sure that the consumers are willing to buy at a price, which covers the costs and leaves a handsome profit.

#2 – Idea: Opening up a grocery store

Minimum investment: Rs 100,000

How it is suitable in small towns: Kirana store, a word, which looks so known. But there are legacies of such stores and this is one business, which cannot fail if the location is well selected and the quality is maintained and prices are reasonable. Luxuries might be affected by the recession; necessities are unavoidable irrespective of the economical conditions. So, grocery stores would be a great venture if you have little extra money. With goodwill, almost every wholesaler provides credit, which drastically reduces the need for working capital. This is one of the good small business idea that can be started with low to medium investment.

#3 – Idea: Fruit and vegetable mart

Minimum investment: As low as Rs 40000

How it is suitable in small towns: Absolutely, as stated above these are necessities and would be sold in all seasons. However, competition, location and the perishable nature require a lot of sound decision making to prosper.

#4 – Idea: Creating an organic farm and send it to the nearby urban locations

Minimum investment: If you have the land all you need is some technical knowledge, hard work and an investment as low as RS 50000

How it is suitable in small towns: This is just what the urban people are looking for. People need organic food to keep them healthy. As land might be a legacy for those in rural regions carrying on organic farming is just the right choice of techniques and working capital of around RS30000 to start farming in a small area.

#5 – Idea: Small cold storage

Minimum investment: RS. 300000- 1000000

How it is suitable in small towns: One of the biggest problems with the agricultural industry in small towns is the fruits and vegetables getting wasted because of lack of proper storage facilities. Although the government has promised to take the production at 1.5 times the cost, it is actually difficult to reach the smallest towns and moreover create awareness for the same. In such a case creation of cold storages for self-use and renting out space can be a brilliant business venture.

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#6 – Idea: Open up a book store

Minimum investment: Rs 50,000

How it is suitable in small towns: As our Prime minister is stressing a lot on education for all and particularly for women, it is making a lot f difference in the manner people have started recognizing the importance of education. In such a scenario, opening up a bookstore can be a great idea to earn money and also create a social awareness about the same.

#7 – Idea: Daycare center

Minimum investment: Rs 100,000

How it is suitable in small towns: With increasing importance of women going to work, this can be a great revenue source to get money. This is one of the best small business idea that can be started with low investment.

#8 – Idea: Retail pharmacy store

Minimum investment: Depends on the level of store

How it is suitable in small towns: With increasing stress levels, the number of diseases and dependence on medicines are increasing. This creates a scope for making medicines available at a nearby location.

#9 – Idea: Auto Repair business

Minimum investment: Rs 20,000

How it is suitable in small towns: All it needs is a very small place and the manpower who can work with limited equipment to provide quick repair services to the most common vehicles used in towns.

#10 – Idea: Fish Farming

Minimum investment: Rs 35,000- 50,000

How it is suitable for small towns: Again what is needed is a location to sell the products and time to do fish farming and store them to keep it fresh for long. Even selling them at a nearby town can get good money.

#10 – Idea: Poultry farming

Minimum investment: Rs 50,000 – 5,00,000 (Depending on the scale desired)

How it is suitable for small towns: Poultry farming is best suited to small towns as they can be well managed there in a cost-effective manner. The only major cost would be to create a hygienic set-up and transport it to the required location without many delays.

#11 – Idea: Opening up a bakery

Minimum investment: Rs 200,000 (Equipment’s)

How it is suitable in small towns: This is something, which is common in small towns and is doing mediocrely well. It is easy to open up a small bakery and keep the items limited but hygienic and tasty. The scope for expanding is huge and can definitely grow to a big business. This is one of the unique small business idea which can be started with low investment.

#12 – Idea: Opening up a barbershop

Minimum investment: Rs 10,000- 500,000 (Depending on the skills and the scale looking for)

How it is suitable for small towns: A person can start from a basic barbershop and scale it up really fast to a good brand if he builds up goodwill. It is so true that everyone wants to look good. By catering to this pain point, one can create a quick name and fame in grows quick.

#13 – Idea: Freelance writing jobs/ Data entry jobs

Minimum investment: NO INVESTMENT, just a computer/ laptop, Internet connection and your knowledge.

How it is suitable for small towns: If you have the knowledge, time and dedication there are no geographical boundaries for this job.

#14 – Idea: Opening up a cosmetics shop

Minimum investment: Rs 200,000 (Shop rent and working capital)

How it is suitable in small towns: As stated earlier, everyone wants to look good. If good products are sold with a proper idea about the manner they are to be used and applied, it can be a good venture. The brands, which are being called for, must be selected as per the price taking capacity of the consumers and the local people. There is a lot of credit being offered by the wholesalers; so good negotiations can help them get great deals and make handsome amounts.

Also Read: 30 Unique Small Profitable Business Ideas with low investment

Other Ideas include:

#15 – Idea: Opening of a photography store

#16 – Idea: Mobile recharges and repair shops

#17 – Idea: Open up a microbrewery

#18 – Idea: Car Wash Centre

# 19 – Idea:  Small dairy farm

#20 – Idea: Franchise school which comes with low cost and readymade infrastructure

Note: All the amounts mentioned, as investments are dependent on the location as well as the scale and risk-taking capacity of the investor. Entrepreneurs should do some analysis and proceed considering one of the best small business ideas before they open it in their towns.

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Suresh KP


  1. Great Ideas. I believe the education franchise is also rising these days in tier 2 and 3 cities of India. It gives an opportunity to earn while educating kids and make them independent. Inifd Gurukul is one such opportunity I’d like to put light on.
    Thanks again for amazing ideas. Will pass it forward for sure.

  2. Hi, the article is very well written and the ideas you have mentioned are really great. Thanks a lots for sharing awesome content

  3. Hi suresh, My question was more towards, how to take first step :).

    There are peoples in my village location, who already has some portion of land + investment money. But, due to lack of knowledge i.e; to whom we should approach and from where to start is main problem for them. Hope you got my point here. Not sure my question is valid or ambiguous.

    1. Hi Suresh,

      Thanks for article.

      Could you please update, to who we can contact for cold storage planning and execution? Any consultant or oraganization, who helps them? There are govt. subsidies as well for this project, how we can take benefit of subsidy?

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