Top 5 Benefits of Starting a Business in a Rural Community

People are increasingly looking to start their own business and becoming entrepreneurs. This growth in enterprise is also apparent in the more rural areas of our economy. Indeed, it is no surprise to see an increasing number of individuals taking this big step into self-employment, with the advantages and benefits a rural setting brings.

1. There is Less Competition

One of the most obvious and most beneficial advantages of starting a business in a rural community is the distinct lack of competition.

Compare this to starting a business in a metropolitan area, you will likely be dealing with a variety of different competitors of various sizes, which makes it tougher for you to get market share.

In a small town or rural setting, you will, at most, have a couple of competitors, depending on your sector or industry. This means you will be able to have a larger customer base from the start, if you can attract them to your location, and you are serving a need.

2.More Cost Effective to Start Up

Starting a business in an urban location can often require a lot of upfront costs. Not only buying the materials/products, also renting office space for your business premises. In contrast set up costs in a rural community will be cheaper in almost every way.

The land will be cheaper, as will renting or leasing space. The advent of co-working such as the Business Hub in Drymen ,Stirlingshire, which offers co working facilities means you can rent a desk for a minimal outlay and utilise the services on offer there as part of the cost, such as WIFI, meeting room etc

Aspects such as marketing and advertising will also be much higher in a city, due to your need to stand out above your numerous competitors. But it's essential of course, you should still do your own research on the area you are considering starting a business in, to ensure that the prices are suitable for you as well.

3.You Help the rural economy

When you start a business in a place like Glasgow or Edinburgh, you are likely not doing much for the economy of that city due to your economy of scales as your input will be negligible, as there are already many entrepreneurs in those cities. When you start a business in a rural community, you are immediately helping that small town with your input and presence. Entrepreneurs have a variety of positive effects on smaller communities. Locally-owned businesses have been statistically associated with, feel good factor, higher income levels, less income equality, lower poverty and unemployment levels and so much more.

4.You Might Be Closer to The Materials You Need

When most people think of a rural community, you might think of farms and the growing/production of raw materials and food stuffs. As a result, if your business needs or uses a certain type of material, it makes a lot of sense to start your business very close to those resources. This could include wood for carving, using fruits or vegetable to make jams or jellies, and a wide variety of other things. Therefore, you will develop stronger relationships with your immediate suppliers in your rural setting compared to the myriad of suppliers in an urban economy.


If you eventually develop a solid product or service, twinned with good customer care and a friendly attitude, it is highly likely you will develop customers for life in a small rural setting. Individuals there are normally very loyal and will likely continue to be your customer if you maintain the same quality and service expectations.

The challenge may be however if you are joining a congested space, as other companies may already have the loyalty of the community. For example, it might be tough to open a coffee shop in a small town where another has been serving customers for decades. In such a situation you need to prove to the locals why you are the better option and why you deserve their business.