Rural Entrepreneur: Best Way to Start a Business

At first, if we talk about the best way to start a business, it is in the urban area. As urban areas are full of people and more footfall means more customers.

The urban area is commonplace for young entrepreneurs to start a business, but the urban area is not the only one running a business there.

The number of customers can be more in the urban area, but stiff competition makes them useless as they go for more alternatives.

Starting a business in a rural area is a big gamble, but then again, any company you start irrespective of the place has risks, so it’s the same gamble.

Starting a business in a rural area has even more benefits – the place is great, you live closer to nature, and the people are friendly.

Why Rural Entrepreneurs?

In rural areas, the youth cannot find any options for their growth. Hence, they move from rural areas to urban areas looking for job opportunities.

It is sad for the rural area and the urban as it put pressure on amenities and infrastructure.

Even though they have many products and services in rural areas, they lack new innovative ideas to make use of the available resources productively.

That is why rural entrepreneurship is required to develop small villages and their people.

Types of Rural Entrepreneurship

  • Agro-Based Industries: Agro-Based industries are enterprises that directly process or sell agricultural products. For example- dairy products, meat, eggs, fruits, sugar etc.
  • Forest-based Industries: The industries depend on forests as their raw material. For example- pulp and paper factories, match industries, timber and plywood industries etc.
  • Mineral-based industries: The industries use metallic and non-metallic and minerals as their raw materials. For example – the cement industry, iron and steel industry, stone crushing etc.
  • Textile Industries: The textile industries use natural or synthetic yarns or clothes as their raw materials. For example – a cloth factory, leather factory etc.
  • Handicrafts: Handicrafts are processing materials by hand with hand tools.

Benefits of Rural Entrepreneurship

  • Less Competition: One of the most apparent benefits of rural entrepreneurship is less competition. As stated earlier, the rural area tends to have a low population compared to urban, so certain types of businesses are not that saturated.
  • Affordable Startup: It requires a lot of overhead expenses to start a business in a big city – buying raw materials, paying for labour and renting out a place. However, starting a business in a rural area will be cheaper in every way. When you have lower costs, that means higher profits.
  • Easy Financing: Capital is an essential factor for starting a business. When people apply for a business loan in the urban area, most of the time, they have a hard time getting approved because of certain restrictions in the city. It is much easier and sometimes cheaper in rural areas to take business loans.
  • Easy Availability of Raw Materials: Since you are in a rural area, It is easier for you to get raw materials as you are already close to those resources.
  • Customer Loyalty: You can quickly develop customers for life if you create a great product, offer great customer service and have a friendly attitude. The people in the small communities are often very loyal and friendly; they will be your customer as long as you provide them with the same quality and service.


Rural entrepreneurs act as eminent figures in the country’s growth and can help a developing country grow. The urban area doesn’t have all the good things.

There are lots of advantages to rural areas, especially when you want to become a successful entrepreneur.

Being a rural entrepreneur, you will provide employment opportunities and reduce poverty leading to decent living standards.

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