Business Ideas For Small Town, Rural Areas And Villages

Are you looking for small business ideas for rural areas or villages? Do you want to start a business in your village? Are you interested in the best business to start in a small town?


Which business to start in a village? A popular question most prospective investors in rural settlements ask is ‘What Business Does Every Small Town Need?’ Whether you are in the US, UK, Canada, South Africa, Kenya, Ghana, or Nigeria, your choice of business must be one that takes advantage of the abundant raw materials, labor, and land available in rural areas and small towns.

You must be careful not to pick a lucrative small business whose growth and expansion would be hampered by the needed infrastructure that may be absent in most villages especially when investing in third world countries.

Starting a business in a small town can be frustrating if you don’t have a good business idea with a low investment.

This is why I have taken the time to compile this small business ideas list to assist anyone passionate about investing in small towns and rural areas. Many of these rural business opportunities can be classified as:

==> business ideas for rural development
==> business ideas for food and agriculture and
==> make money small town business ideas (General)

Do you know that one of the top problems confronting many nations in the world today is Rural-Urban migration?

This is because people who leave the hinterland for the more developed cities do so for job/business opportunities and also for a desire to have a better standard of living.

This movement has been fraught with several challenges. For one, and especially prevalent in developing countries that do not have adequate planning, there is a strain on the available infrastructural resources to cope with the large influx.

Another reason is that many economies are experiencing economic recession; hence job openings are diminishing rapidly in cities and larger states.

However, the present-day economic indices show that small towns and villages are becoming the next frontier in starting and running new business ventures.

The attractions to starting a business in a small town include low startup costs, the leverage for flexibility as well as the presence of a receptive market.

Based on these enabling factors, you can explore and exploit the following business ideas for a small town:

Here are eight low-cost small businesses that thrive in villages and rural areas:

1.==> Farming

Do you need the best ideas for small businesses in rural villages related to agriculture? Cultivating food crops and rearing animals that are supplied fresh to people in urban centers is a good way to make money in small towns.

Many people prefer vegetables and fruits harvested fresh from villages because these products are organic and contain no chemical preservatives that are usually harmful.

Most manufacturing companies also rely on raw materials that are produced from rural farmland such as cotton, rubber, fruits, oil palm, etc.


Many people want to know the best agro-allied business opportunities in small towns. This necessitated my next question: ‘What are the best agricultural business ideas for villages?

Well, this question is difficult to answer considering that I have not toured around all agribusiness.

But from all indications, poultry farming, fish farming; oil palm, cocoa, and vegetable farming are some of the most profitable small business opportunities available in farming and agriculture.

2.==> Trade Skills For Money

Since there is a need for various constructions in a rural settlement, if you are skilled in carpentry, woodwork, metalwork, machine repair, and welding services; you are sure of making decent money.

House roofing, boat building, local fabrication of farm equipment, etc are some of the numerous ways skilled artisans can make money from the construction need of people in small towns.

A local construction company is probably the best business to open in a small town if you have the necessary skills.

3.==> Market Agric. Produce

Buying and selling animal and plant products is a good business idea for developing areas and suburbs.

You have access to many of these agro commodities at cheap prices which you can repackage and sell at higher returns in major towns and cities.

Supplying farm produce is a profitable small village business idea because you make a lot of money from the supply chain as a distributor of fresh eggs, chicken, day-old chicks, vegetables, fruits, etc; to major cities in your countries and abroad.

4.==> Offer Tourist Services

If you have a point of attraction in your locality and you are not making money, then I can tell you sincerely, you have been sleeping. Tourist centers have attracted visitors naturally.

One of the ways to generate income from that natural scenery, spring, highland, a plateau is by rendering tourism services to visitors who come flocking especially during holidays and festival periods.

Set up a company to provide tourist guides who would take visitors around and educators who would provide historical facts and information about what tourists have come to see.

Before you know what’s going on, you will discover that you have created wealth for yourself and employment for your community.

5.==> Gather And Sell Scrap Materials

Gathering and selling used plastic containers, scrap metals, and equipment, scrap jewelry, etc for recycling is one of the most lucrative small town business ideas. This is because villagers believe there is no value left in these items and you can easily find them lying all about.

If you can gather a substantial amount, these materials can be exchanged for good cash.

HOT: Make Money From Scrap Metal Business

6.==> Produce Local Clothing And Jewellery

Rural community people have peculiar clothing materials and dress styles. If you start a rural business of producing, selling local wares and local jewelry you will make a lot of money.

Many people have been able to exploit one of man’s basic needs which is clothing to amass wealth to themselves.

Handwoven materials and locally knitted stuff appeal to local people better. This is especially true for special wear during celebrations like weddings, burial, naming, and coronation ceremonies.

TUTORIAL: How To Start Gold Business: Invest In Buying And Selling Raw Gold And Scrap Jewelry

7.==> Sell Flowers

Because of the abundance of flowers, an abundance of farmland to cultivate it, many people have turned florist selling flowers to community people and tourists.

These particular sets of investors make double profits especially during seasonal holidays and festival celebrations.

All you need is a sound knowledge of horticulture and gardening, tight marketing, and locating your sales outlet in a conspicuous corner of the town.

To promote your flower business, you can look into offering free home delivery to new and loyal customers.

8.==> Firewood Business

Well, if you are in Nigeria and some other developing African countries like Kenya, you will understand that the demand for firewood as an alternative source of energy for cooking and heat generation is high.

There are two ways of making money from the firewood business.

One is by gathering and selling firewood directly to the end-users while the other involves the burning of firewood to produce charcoal which is then broken down into lumps for local and industrial use.

This good small town business opportunity involves a lot of labor which can be acquired at affordable rates in rural areas.

9. A Convenience Store

One of the most profitable businesses you can start in a small town is a convenience/retail store.

Big retail businesses usually consider issues like the feasibility and return on investment when it comes to establishing supermarkets in smaller settlements; hence these places are usually overlooked.

This presents ample opportunity for you to provide a much-needed service, as inhabitants require everyday items such as bathing soaps, toothpaste, beverages, toiletries et al.

To run a successful convenience store, you will have to strike a beneficial relationship with suppliers of your basic stock. Since these suppliers are usually situated in larger cities, you will also have to evolve cost-effective ways of transporting your stock to your business location.

You should also look to offer these everyday items at affordable/discounted prices.

10. Plastic Recycling and Metal Scrap Sales

If you reside in a small town, then you can consider starting a plastic recycling and /or metal scrap gathering/sales business.

For starters, you should have a plentiful supply of these products lying about that small town, as chances are high that the inhabitants do not place much premium on them.

One of your major strategies will be to find a cost-effective means of gathering these products in commercially viable quantities. This will entail the engagement of workers to assist in this regard.

The tools of your business will include a weighing scale, collection bags as well as a collection/sorting center.

At the other end of your business structure, you will have to establish a relationship with plastic recycling and smelting plants that will pay for your supplies of waste plastic and metal.

11. A Tutorial Centre

With the world turning into a global community, even the small town has inhabitants that desire to become literate and acquire other desirable skills. If you are knowledgeable and have a flair/love for teaching, then you can decide to set up a tutorial center in the small town you reside in.

For starters, the cost of starting a learning center is low; what you will require includes basics such as a suitable location, benches, chairs, and tables, as well as books and other instructional materials. The cadre of your clients can include small children, teenagers, young adults, and even the elderly.

You can expand your operations by engaging other suitably qualified hands to help out in subject areas that you do not specialize in.

12. Farming

Traditionally, small towns and villages have almost always provided the peasant and subsistence agriculture/farming that offer crops and animals for the big cities and settlements.

With the rural to urban migration mentioned earlier, a number of these small holding farms have been abandoned.

You can decide to pursue the idea of starting a farm in the small town you reside in. You should carry out a detailed survey to determine the kind of crops, the climate, and the soil of the town that can best support you.

You can elicit the contribution of local authorities in the area of the provision of improved varieties of crops as well as fertilizers. Your major clients will be manufacturing/processing concerns in the cities closest to you as well as large urban provision stores.

As a value addition to your farming business, you can also set up an integrated processing plant, to turn your produce into semi-finished and finished products, thereby expanding your revenue stream.

13. Set up a Computer and Internet Services Center

With the increasing expansion of the knowledge-driven world that we live in, inhabitants of small towns also need to send and receive information via the internet and other channels.

Also, you will find that there is a need to also have documents typed and dispatched to various destinations.

You can cash in on this opportunity by setting up a Computer and Internet Services Center. Your most basic requirements will include having several computer systems, internet access as well as a source of uninterrupted power supply.

Successful Businesses To Start in Small Towns, Villages, and Rural Communities

There are other business ideas with low investment that can be exploited in small towns. You only have to rigorously research the available options against the backdrop of your expertise, finances, and other resources.

On a final note, you should understand that there are lots of profitable businesses that you can open in rural areas on a small scale with little or no capital.

With a determined spirit, good business, and marketing skills those little small town business ideas will grow into a household brand soon.

Best Business to Start in Small Town

There is a wrong notion about small towns and highly profitable businesses.

Some people believe lucrative business opportunities are unavailable in small towns. But the reverse is the case, as small towns also have business opportunities that witness high patronage.

This article sheds light on business ideas for small towns, to reveal some of these business ideas which are highly profitable and can be taken advantage of.

With adequate and proper planning, starting a business in a small town can grow to exceed your expectations. It all boils down to getting the perfect business idea that can be implemented.

However, a business idea is not enough, as you need to have the drive and passion to start such a business.

We present you with lucrative business ideas for small towns.

Bakery Business

A bakery business within a small town is normally a well-patronized business, as it provides all the snacks, cakes, bread, and pastry requirements of the town. Although patronage may not be high at first, patronage may be very low.

However, with time, patronage can pick up considerably. Possessing great baking skills resulting in delicious products will attract high patronage to your bakery business in the long run.

Restaurant Business

Restaurants are great businesses in small towns and thrive if properly planned by putting in place the requirements and structures. Another major contribution to how well a restaurant business will do in a small town is its location.

Selecting a strategic location for the restaurant can significantly increase the patronage of the business. Such a business should be located in areas where most activities take place. The higher the human traffic, the more likely the restaurant will witness increased patronage from clients. This is one of the most lucrative business ideas for rural areas in Kenya.

Motel Business

For small towns located along major highways, starting a motel business is a great idea.

This is one of the lucrative business ideas for small towns that continually witnesses patronage from most travelers. Such motels provide resting stations for those people traveling long distances.

Although such businesses may witness patronage from the locals, a majority of its patrons consist of travelers and tourists or visitors.


Every small town requires some form of medical services, however, a hospital or medical center should only be provided based on need.

This is because in some small towns, there may be hospitals already established, and therefore, adding another may result in non-patronage, as such a place may not require an added medical facility.

The target should be for small towns with no major hospitals or medical centers.

Veterinary Clinic

If you are a qualified veterinarian, then this is the best business to start in a small town.

Here, you are likely to witness high patronage because such places are normally occupied by farmers who own livestock consisting of cows, sheep, and poultry in addition to domestic animals and pets.

Providing this critical service is enables livestock farming to thrive. This is among the most lucrative business ideas for small towns that allow you to attract phenomenal profits.

Auto Garage

So long as vehicles exist, you will never run out of patronage from vehicle owners.

Providing this service is essential to the smooth running of the small town, as vehicles are used to purchase supplies from major cities as well as transporting people, livestock, and farm produce.

A garage is a highly lucrative business to set up in a small town as the rewards can be enormous if the right things are put in place to ensure the smooth running of such business.

Starting a Hair Salon and Barbershop Business

This business idea for small towns is an essential service, as people will need to make or trim their hair.

When starting this business, it should be located at a strategic location where it will attract high patronage, as busy areas are more likely to attract new clients.

When starting the business, it may not witness high patronage at first; however, with time, and the provision of quality services, you are likely to build a loyal client base.

Car wash

A car wash is among the lucrative business ideas for small towns, especially when the availability of such services is absent.

An advantage of starting the car wash business is that it does not require high startup costs. While being relatively cheap to start, it provides handsome rewards to the owner of the business.

This is more so if it is properly run.

In the event of increased demand for such services, you may expand the business or open another car wash in another part of town to cater to the growing demand for such services.

Flower Shop

This is a low-cost business that attracts high patronage. Before starting this business, it is important to examine your profit margin, to see if you will still be profitable if you provide cheaper flowers to your clients.

If it allows you to still be profitable while lowering your prices, then you have an edge over your competitors, as clients are likely to patronize your products over those of your competitors.

These are some of the lucrative business ideas for small towns that require considerably lower startup capital.

A criterion for the selection of any of these business ideas should be that you have the passion and interest in starting the same. This is what will sustain you through the hard times.