Working your way up from the rural and remote village, setting up a small business is not always easy. You have to know about your surroundings. One needs to study well about other establishments there. The business owner must have sharp mindsets and sell their products and produces in good prices. You do not have a huge marketplace in remote villages where you can gain huge profits by selling your goods.
Thanks to digitalization, the rural entrepreneurs do not have to relocate their businesses in cities anymore. Why you ask? The rural customers are more loyal. The business operation costs tend to be much lower than the urban areas. The cost of living is significantly lower than that of cities. We have got our hands on a survey that shows that, in rural areas, the profitability rates are higher.
This is ranged from 53 to 63 percent. They can keep all these cash to themselves and live comfortably with their family. Cheaper mortgages, easier procurement of raw materials can also be mentioned. That is some higher quality life we are talking about!
Alas! The rural entrepreneurs do however face some significant challenges. Firstly, the access to capital. It is the most horrific issue. The related issues can be itemized into some sub categories: Poor credit, lack of collateral, lack of trusted lenders, high interest rates etcetera. Statistics show that the rural businessmen invest 71 percent of their annual savings on their businesses. While there are many business gurus, investors and mentors are prevailing in cities but unfortunately there are not so many in villages.
Second, is the access to labor. The areas do not have huge industries and thus they do not promote or provide entry level workers. College students and graduates always seek for jobs that pays them well and hone their skills. 39 percent say they couldn’t find candidates with the right kind of experience. While, 37 percent said their communities lacked an adequate talent pool. Critical thing is that, 35 percent said they had difficulty finding candidates with the right education, skills or training. 23 percent said it is harder to approach to candidates to relocate to these areas. 61 percent said their employees found other jobs with more opportunities for advancement.56 percent said they were unable to well pay them! 52 percent did some relocating and finally, 50 percent said their employees left due lack of professional job development training programs.
Thirdly, an access to connectivity. This small time businesses range from 20 percent profits up to 80 percent from internet. It has amassed gross sales from businesses up to 17.2 percent. Just only 44 percent of rural small businesses have good access to digital connectivity consists of mobile net, broadband, wi-fi s, laptops etcetera. More than 20 percent of rural small businesses do not have high-speed net spectrum and only 5.4 percent of rural small businesses still use old-schooled dial-up services to access the Internet.
Discover more on Small Business Ideas in Remote cities in USA
However, due to COVID, the lives of the local entrepreneurs are having tough time. They need to be empowered, financed. For further reading: “Why Main Streets are a key driver of equitable economic recovery in rural America.” Take a peek.
Therefore, there are some challenges in living in rural areas like –
- The inability to obtain affordable, high-quality health care.
Rural areas around the world face a scarcity of health care workers more than twice as great as urban places. In distant communities like SurfAid’s, the necessity for basic healthcare implies that rural residents bear a disproportionate burden of disease compared to the general population. However,Remote communities have a serious health disparity problem, and one that can be deadly.
- Secondly, there are not enough job opportunities.
People who live in rural locations have fewer options and are more likely to be unemployed than those who live in cities. For many people living in rural areas, agricultural work is their sole alternative for employment. Despite this, young people around the world are turning their backs on farming. Increasing numbers of young people are moving to urban areas in search of employment. This results in a localized ‘brain drain,’ when the best and brightest residents leave the area in droves. Because these people don’t use their skills to create chances for others in the community, this has a ripple effect. This generates a revolving door of suffocation.
- There is a lack of water, sanitation, and other facilities.
The COVID-19 pandemic has brought hygiene to the forefront recently. Communities with limited or no access to clean water have long battled to wash their hands and obtain clean drinking water. Health and safety are severely compromised by the lack of WASH facilities and other infrastructural issues, including a lack of power generation.
- Internet access is not available.
We can’t envisage a world without the internet for the vast majority of us. Remote populations around the world are still unfamiliar with the internet. People who live in distant areas typically have little or no internet connectivity at all, if any at all.
Therefore, It is difficult for people to communicate, to educate themselves, to run businesses, to perform banking, to find and buy products they need, and to navigate around without internet maps because of the absence of connectivity in this country.
Access to news, health information, and crucial government communications is also impeded. People who live in isolated areas find it more difficult to find distant work that suits their interests.
- Not enough transportation.
Affordability and accessibility to reliable transportation are vital for people to have fulfilling lives, receive timely medical attention, and take advantage of new opportunities. Remote towns can avoid a mass exodus to urban centers if they have access to transportation that allows them to go to and from employment or school in the city.
Even though SurfAid serves island villages that may be reached by boat in days, commuting is impossible. As a result, very minor public services are provided in the area.
Check it for gather more ideas – Best Guideline for setting up your own Business