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Top 35 Small Business Ideas in Bihar for 2024

Are you looking for small business ideas in Bihar to start your business venture? Here in this post, we explore the most trending and profitable business ideas and opportunities that you can start in Bihar with low investment.

Bihar, located in the eastern part of India, is a state blessed with diverse landscapes. It is strategically positioned, sharing borders with Nepal in the north, West Bengal in the east, Uttar Pradesh in the west, and Jharkhand in the south. The Ganges River, a lifeline for the region, flows through the heart of Bihar, providing fertile plains and contributing to its agricultural prosperity.

What are the Major Industries in Bihar?

Bihar is a growing state in India and traditional as well as new industry sectors are thriving here. Some of the leading industries in the state of Bihar are listed below:

a) Agriculture

Rice Bowl of India: Bihar is often referred to as the “Rice Bowl of India” due to its fertile plains. It is a major producer of rice, wheat, and maize. The agricultural sector plays a pivotal role in the state’s economy, employing a significant portion of the population.

b) Textiles and Handicrafts:

Madhubani Paintings: Bihar is renowned for its traditional art forms, with Madhubani paintings being a prominent example. This intricate and vibrant art has gained international acclaim, contributing to the state’s cultural and economic identity.

c) IT and ITeS

Emerging Tech Hub: In recent years, Bihar has shown a growing interest in the Information Technology (IT) and IT-enabled Services (ITeS) sectors. Cities like Patna are witnessing a surge in tech startups and IT companies, creating employment opportunities for the youth.

d) Tourism

Cultural Heritage: Bihar boasts a rich cultural and historical heritage. Places like Bodh Gaya, where Buddha attained enlightenment, and Nalanda, an ancient center of learning, attract tourists from around the world. The tourism industry is a key player in the state’s economy.

e) Food Processing

Given its agricultural abundance, Bihar has the potential to become a hub for food processing industries. Agro-based businesses, including food and dairy processing, are gaining traction.

f) Renewable Energy

Harnessing Natural Resources: Bihar is making strides in harnessing renewable energy sources. Initiatives in solar and wind energy contribute to sustainable development.

Is Bihar a Good Place to Start a Business?

At present, starting a business in Bihar can be a good decision for several reasons. Some of them are listed below:

⇒ Growing Economy

Bihar has experienced economic growth in recent years, providing a conducive environment for businesses to thrive. As per the latest data received, the Gross State Domestic Product (GSDP) of Bihar for 2023-24 (at current prices) is projected to be Rs 8.59 lakh crore. It amounts to a growth of 8.9% over 2022-23 (Rs 7.89 lakh crore).

Agricultural Potential

The state is agriculturally rich, offering opportunities in farming and related sectors. Agriculture with livestock farming and the small industry sector has a significant agricultural base. The state is known to manufacture pulses, shoes, Masur, chasra, electrical goods, and cotton yarn. (Source)

⇒ Rich Cultural Heritage

Bihar’s rich cultural heritage provides opportunities for businesses in tourism, handicrafts, and handloom.

⇒ Emerging IT Hub

The IT infrastructure is steadily developing in the state. As a result, Bihar is becoming an emerging IT hub, presenting a wide range of business opportunities in the technology sector.

⇒ Large Consumer Base

Bihar has a large and diverse consumer base. Hence the state provides opportunities for various businesses, including retail and services.

⇒ Government Initiatives

The state government has been implementing initiatives to promote entrepreneurship, making it favourable for business development.

⇒ Increasing Urbanization

More and more new cities are coming up in Bihar. Urbanization is on the rise and hence creating demand for various services and businesses.

35 Business Ideas in Bihar

#1. Beauty Salon

Initiating a beauty salon is one of the most profitable small business ideas in Bihar. Location, skill, expertise, and retail operation experience are the key issues in achieving success in this business. Bihar is an emerging market for the beauty salon industry nowadays. You can start either on your own or by purchasing a franchise of an established brand.

#2. BeeKeeping

The honey business has been one of the sweeter stories to emerge out of Bihar over the last few decades, as the state contributes handsomely to the nation’s honey production. As per the latest report of the National Bee Board report, India has a total of 9,580 registered bee-keepers with 1,412,659 bee colonies. Bihar has 859 registered beekeepers out of them. The state ranks 11 in honey production in the country.

#3. Start a Blog

Many people are making good money in Bihar by running blogs. You need to choose a niche that aligns with your interests and provides value to your audience. Consider using platforms like WordPress or Blogger to set up your blog. You can monetize your blog by Google Adsense, affiliate marketing, sponsored posts, or even offering local businesses a platform for promotion.

Read: Best Online Jobs from Home

#4. Handloom and Handicrafts

Bihar has a rich tradition of handloom and handicrafts. The total number of weavers here is more than 90,000. Bhagalpur is known as a leading silk city. In addition, there is a strong traditional handloom cluster in the districts of Bhagalpur, Gaya, Nalanda, Darbhanga, Madhubani, Siwan, and Patna. Starting a business in this sector will not only fetch good profit returns but will also help in promoting local art.

#5. Organic Farming

The fertile land of Bihar is ideal for organic farming. Starting an organic farm could be a lucrative venture, as the demand for organic produce is on the rise.

#6. Fertilizer Distribution

Bihar is a state of agriculture. Rice, maize, pulses, cereals, and fruits are the main agricultural produce. Regardless of rural or city area, any individual can initiate fertilizer distribution as a profitable venture here.

#7. Fish Farming

With Bihar having a nine lakh acre wetland, the potential for a fish farming business is obvious. Fish farming is an important and fast-growing sector in Bihar. The state has immense natural aquatic resources in the form of ponds and tanks where quality fish seeds are required for good fish production. The local government’s encouragement towards developing fish seed hatcheries is quite encouraging.

#8. Livestock Feed Production

As livestock farming is a strong alternative to livelihood in this state, livestock feed has an enormous demand within the state. Good quality livestock feed is always in demand for livestock farm owners.

#9. Micronutrient Manufacturing

Micronutrient manufacturing is one of the most incredible small business ideas in Bihar for entrepreneurs who know the chemical industry. To enhance the productivity of rice, Wheat, Maize, and Pulse crops and to improve soil health the use of micronutrients is mandatory.

#10. Tea Bag Making

Around 25,000 acres of land in the state are covered under tea plantations, mostly in Kishanganj and the rest in the Purnea, Katihar, and Araria districts. These districts have been declared as non-traditional areas under a Tea Board scheme and enjoy subsidies/incentives. There are two processing units in the district, which produce green leaf tea that is ultimately converted to around 2,300 tonnes of processed tea.

#11. Tyre Store

Entrepreneurs who are interested in the automobile industry can start a tyre store business here. This is a capital-intensive business. One must have experience and knowledge of inventory management.

#12. Papad Making

Bihar is one of the strongest agricultural States, with very high productivity. The raw materials for different tastes of papad are easily available here. Papad-making is also a very lucrative proposition for women entrepreneurs.

#13. Computer Training Institute

Initiating a computer training institute is one of the most lucrative small business ideas in Bihar. This is ideal for any individual who has certain skills and knowledge about computer operation.

#14. Poultry Farming

Poultry farming, especially chicken rearing, is a growing industry. If you have the necessary experience, starting a poultry farm in Bihar can high profit returns.

#15. Dairy Farming

Milk production can be a stable and profitable business in Bihar. You can tap this market by setting up a dairy farm.

#16. Tourism Services

Bihar is rich in historical sites. Tourists from all across the world visit places like Bodh Gaya, Nalanda, Vaishali, Madhubani, Rajgir, etc. You can offer a wide range of tourism services such as guided tours can be lucrative.

#17. Education Center

There is a good demand for good education facilities in the state. You can set up an education centre, especially for skill development.

#18. IT Services

Bihar is growing in terms of IT infrastructure. Offering IT services or starting a software development company is a viable option.

#19. E-commerce Store

You can leverage Bihar’s rich tradition of arts and crafts by creating an e-commerce platform to showcase and sell local handicrafts. Some of the online shops you can consider starting in Bihar are as follows:

  • Online marketplaceAgricultural Products
  • Online Education Platforms
  • Online Food Delivery Services

#20. Food Processing

There is an increasing demand for agro-based food items. Hence, setting up a food processing unit for local agricultural products can be a profitable venture.

#21. Social Media Management

Many local businesses in Bihar may not have a strong online presence. Offer social media management services to help them reach a wider audience and increase customer engagement.

#22. Catering Services

If you are looking to start a food-related business with a low budget, consider a catering business. You can cater to the catering demand of events, weddings, and other occasions and make good money.

#23. Mobile Repair Shop

The number of mobile phone users has increased hugely in the last few years. You can launch a mobile repair shop and earn money for mobile phone repair needs.

#24. Medicinal Herbs Cultivation

The diverse climate of Bihar is suitable for cultivating medicinal herbs. This can be a highly profitable business in the state.

#25. Garment Manufacturing

If you are looking to enter the clothing industry, think of starting a garment manufacturing business. You can cater to local and regional markets and make good money.

#26. Solar Energy Services

There is a growing demand for sustainable energy in the state. As Bihar has ample sunlight, starting a solar energy business can be a profitable venture here.

#27. Real Estate Development

The demand for accommodations is fast growing in Bihar. As the state urbanizes, real estate development can be a lucrative venture.

#28. Fitness Center

More and more residents in Bihar, especially in cities and towns, showing increasing awareness of fitness. Hence, starting a gym or fitness center can be a good business here in the state.

#29. Car Rental

The demand for car rentals has increased in almost all cities in Bihar. If you have car/cars consider starting a car rental business. You can also list your car with car aggregating platforms like Uber, Ola, etc.

#30. Waste Management

Like any other state in India, waste management is a concern here. You can start a recycling business and not only make good profits but also contribute to a pollution-free society.

#31. Event Management

Weddings, corporate events, and cultural programs happen all round the year in Bihar. You can start an event management company that can cater to weddings, corporate events, and cultural programs.

#32. Restaurant/Cafe

Starting a restaurant can be a profitable venture in Bihar. You can open a restaurant or cafe, especially one that highlights local cuisine, which can attract both locals and tourists.

#33. Jewellery Design

There is a good demand for designer jewellery in Bihar. You can start a jewellery designing and manufacturing unit that caters to the demand for traditional jewellery.

#34. Automobile Repair Shop

The number of vehicles in Bihar has increased manifolds in the state. Hence, starting an automobile repair shop can be a profitable venture.

#35.Diagnostic center

There is a shortage of proper healthcare facilities in the state. You can meet this demand by People establishing clinics or diagnostic centers that can cater to the healthcare needs of the community.

What are the Challenges to Start a Business in Bihar?

Before launching a business in Bihar, it is advisable to learn the challenges you might face. Find below some of them:

⇒ Infrastructure Development

While improvements are being made, some areas still require infrastructure development.

⇒ Skilled Manpower

Ensuring the availability of skilled manpower might be a consideration, especially in specialized sectors.

⇒ Regulatory Environment

Like in any region, understanding and navigating the regulatory environment is important.

⇒ Market Research

Conducting thorough market research is essential to identify the specific needs and demands of the local population.

⇒ Competition

Depending on the sector, there might be varying levels of competition that need to be analyzed.

Frequently Asked Questions

What are the key sectors for starting a business in Bihar?

Agriculture, food processing, IT, tourism, and manufacturing are promising sectors. Conduct market research to align with local needs.

How can I register my business in Bihar?

Visit the official website of the Ministry of Corporate Affairs (MCA) for information on business registration. Additionally, consult local authorities for any specific requirements.

Are there any incentives for businesses in Bihar?

The Bihar government provides incentives such as tax breaks and subsidies for certain industries. Check with the State Industrial Promotion Board (SIPB) for the latest incentive schemes.

What is the availability of skilled labour in Bihar?

Bihar has a growing pool of skilled labour, especially in the IT sector. However, assess your industry’s specific needs and consider training programs if necessary.

How is the infrastructure for businesses in Bihar?

While there have been improvements, some areas may still need infrastructure development. Assess the specific location and its connectivity.

What are the funding options for startups in Bihar?

Explore government schemes, venture capital, and angel investors. Bihar Startup Policy may provide insights into available funding avenues.

How can I tap into the tourism sector in Bihar?

Explore opportunities in hospitality, travel services, and promoting local crafts. Collaborate with local tourism boards for better insights.

Are there specific regulations for businesses in Bihar?

Understand and comply with local business regulations. Seek guidance from legal professionals and local authorities to ensure adherence to all norms.

Is Bihar suitable for tech startups?

Yes, Bihar is emerging as an IT hub. Evaluate the tech ecosystem, infrastructure, and government support for startups in the IT sector.

What steps can I take to understand the local market better?

Conduct thorough market research, interact with local communities, and consider pilot projects to gauge market response. Networking with local entrepreneurs can also provide valuable insights.