Business establishment is indeed one of the most important decisions that one can make in his or her lifetime and therefore location is one of the most important factors that needs to be given due attention. Bihar is one of the oldest states of India and now it is emerging as a new business destination.
Bihar offers many opportunities for entrepreneurs as it has a strong infrastructure, favorable government policies, and a big young population. Let’s delve deeper and find out why Bihar is an ideal destination to commence business, how one can begin with it, and watch out for ten business ideas that have high viability in Bihar.
Why Is Bihar a Good Place for Business Ventures?
Bihar is a state which has enormous scope for development. The state government has been keen on the development of the infrastructure to facilitate the transportation of goods and services. Transportation infrastructure such as roads, electricity, and internet connectivity are gradually being developed, thus making it easier for the business to run. Besides, Bihar has a large population, especially the youth which has cheap human resources and a growing market.
The government of Bihar is also very much supporting the new business ventures. Some measures have been taken to boost the spirit of entrepreneurship like easy access to loans, tax exemptions, and subsidies.
For instance, the Bihar Industrial Investment Promotion Policy provides the necessary incentives that help new-generation entrepreneurs embark on the new industrial age. This policy is meant to foster investments in areas such as manufacturing, agriculture as well as the service industry.
The cultural and economic diversities of Bihar provide distinctive opportunities in areas of tourism, agriculture, and handmade products. There are opportunities in agricultural-related businesses since the state has a rich soil but there are also historical landmarks hence the tourism business could thrive well.
How to Start a Business in Bihar?
To start a business in Bihar one has to go through the following procedures. First and foremost, you must choose the type of business that you’re interested in and have some expertise in. The second step once one comes up with an idea is to assess the market to determine the need for that product or service in Bihar.
Then, it will be necessary to register your business. Depending on the kind of business you wish to set up you may be required to register it as a sole trader, a partnership, or a private limited company. Registration is important since it affords your business a legal entity and you are in a position to search for government grants and credit.
Once you have registered your business you should consider applying for any license or permit that may be required. For instance, if you are going to operate a restaurant, you are going to need a food license. It is also appropriate to select the correct venue for your business. Some of the recommended locations include Bihar where there is Patna, Gaya, and Muzaffarpur which are well endowed with infrastructures and larger markets.
Last but not least, there is the issue of funding, however, this should not be an issue of concern given the fact that there are lots of financial sources that are willing to fund viable projects. One of the ways is to approach the banks for a loan or check out government grants given to new startups in Bihar. Getting the required capital will enable you to employ people, buy utensils and equipment, and advertise your products or services.
Top 10 Best Business Ideas in Bihar
1. Organic Farming
There has been an increased awareness of health and environmental problems and as a result, organic farming is on the rise. This agricultural technique does not allow the use of synthetic pesticides, fertilizers, and genetically modified organisms. Sustainable farming entails maintaining healthy soil, supporting biological diversity practices and methods of production of crops, and rearing animals.
The increased consumption of organic products has been attributed to consumers’ preference for food that is produced naturally without the use of chemicals and in an environmentally friendly way. This is due to the escalating worries over the impacts that conventional farming has on the health of human beings and the environment.
Details:
- Resources: Soil, seed, and fertilizer are some of the natural input factors.
- Market Demand: High demand as a local product and also as a nationally branded product.
- Potential for Growth: Increase in demand for organic products, thus having good growth potential.
- Budget: Moderate investment required.
- Tips: Concentrate on valuable crops; and ensure they market their produce directly to the end users or the local markets.
2. Dairy Farming
The tradition of dairy farming has always been strong in Bihar and therefore there is a good business proposition. This means the state has had a long history with this form of farming making a strong foundation for the dairy business.
This established history shows that dairy farming in Bihar is not a new phenomenon, it has recently become a practice known and followed in Bihar by many. The blend of experience and future capability makes dairy farming a viable business in the region.
For the new entrants in this sector, the expertise and infrastructure already available in Bihar may be of great help to entrepreneurs and investors. All in all, the state has a long history of dairy farming and could be regarded as an ideal place for the development of dairy-related enterprises.
Details:
- Resources: Cattle are usually required for production while land for growing feed is also considered an important asset basic implements for dairy production such as milking cans and churns are also considered.
- Market Demand: High demand for milk and milk products.
- Potential for Growth: Consumer preference for dairy products in urban areas due to changing diet.
- Budget: Moderate, although government subsidies may be incorporated as a part of investment.
- Tips: Focus on improving milk yield and quality to stand out in the market.
3. Tourism and Travel Agency
India’s Bihar is a historical and religious place that attracts millions of tourists from all over the world. This region is also popular with tourists who come to this region to discover cultural and religious sites. The numerous and various places of interest located all over Bihar give a rather fascinating insight into the region’s history and religion.
These are the kinds of attractions that can attract a lot of visitors because the sites range from archaeological sites to religious places. The tourism geography of Bihar can be described as the availability of opportunities to present a blend of history and religion, which is interesting for domestic and international guests.
Details:
- Resources: Awareness of the key locations, and relations with hotels and carriers.
- Market Demand: On the demand side, consumption has been constant and consistent both from domestic and international tourists.
- Potential for Growth: Increased concern in cultural and heritage tourism.
- Budget: It requires a low to moderate amount of investment compared with other forms of marketing.
- Tips: Contribute enriching tour packages with options for visitors and advertise your services on the Internet.
4. Handicrafts Business
Bihar has a glorious background in the field of handicrafts and it has earned a good name in India as well as in the international market. There is quite a wide range of artisanal products within the state and these are evidence of the hard work and innovation of the artisans.
Besides being a symbol of pride in a certain culture, these handicrafts play a major role in the economy of the area. From Bihar’s textiles, and pottery to its wooden products, the artisans have maintained the traditional practices with changes according to the contemporary trends.
This has ensured the continued production of these handcrafted products because people are now appreciating handmade products more than machine-made products. Bihar’s handicraft industry therefore is a good example of a blend of culture, creativity, and employment opportunity.
Details:
- Resources: Innovative craft makers, unprocessed materials including bamboo, clay, and fabrics.
- Market Demand: Public awareness of the need for genuine products that are made by hand.
- Potential for Growth: Increasing the market by using the internet and exports.
- Budget: Low to moderate investment.
- Tips: Focus on quality and uniqueness to appeal to a broader market.
5. Food Processing
The food processing industry can be interesting to invest in because Bihar is an agricultural-rich state. The agriculture sector in the region is well established hence the availability of raw materials in the form of crops to be processed for food.
In this way, the local agricultural wealth can be transformed through certain processes to make value-added products, increase shelf life, and even expand their market share. This sector presents the opportunity to add value to raw agricultural products processed food stuffs, preserves, and other edibles.
In this context, the food processing industry offers a very good potential for Bihar to grow, create employment, and extend its agricultural backbone. This could also assist in cutting on post-harvest losses as well as increase farmers’ revenues through ready market for their crops.
Details:
- Resources: Availability of locally grown foods such as rice, wheat, and fruits.
- Market Demand: Increase in the growth rate of processed and packaged foods.
- Potential for Growth: High potential because of a growing population and tendency to urbanization, further, the need for ready-made products.
- Budget: It requires a moderate to high amount of investment depending upon the size of the project.
- Tips: Concentrate on the quality of the products and the brand to ensure that a large market is carved for the company.
6. Textile Manufacturing
Bihar has a traditional textile industry one of the highly regarded being the Bhagalpur silk. The textile industry of the state has its origin in the historical period, thus representing the cultural and economic value of the region.
Although the information given is quite limited, it underlines the role of silk production in Bhagalpur and thus it may be ascertained that textiles are potentially an important sector in Bihar.
The use of the word ‘strong tradition’ is suggestive of the fact that the craft of textile making has been inherited from generations past and is perhaps a reason why Bihar’s textile products are so special. This industry may be one of the significant industries for the state’s economy and culture.
Details:
- Resources: Availability of local talent and availability of raw materials.
- Market Demand: Market demand for traditional textiles within the country and across the globe.
- Potential for Growth: Exporting provides a great potential for growth in sales.
- Budget: Moderate to high investment needed.
- Tips: Invest in modern machinery and marketing to scale the business.
7. Education and Coaching Centers
The education and coaching industry has vast prospects due to its large students’ population. This demographic is well known for creating a large demand for after-school or supplementary learning services.
Students may look for extra materials to improve their performance, review some material before exams, or work on specific skills. Hence, there is much choice in tutoring centers, test preparation faculties, and specialized coaching institutes. These services operate for any subject, for different levels, and for different learning styles to fit the needs of the student population.
The demand ranges from elementary education to tertiary education level including basic subjects as well as co-curricular activities. This educational landscape may show that there is room for academics and/or business people to start businesses that will be profitable in the area of academic support.
Details:
- Resources: Adequate supply of quality teachers, quality teaching and learning resources, and an appropriate physical environment.
- Market Demand: High demand for coaching for competitive examinations.
- Potential for Growth: There is a rising need to have professional tutoring in different areas of study.
- Budget: They require low to moderate investment to initiate with the possibility of expanding as the enterprise develops.
- Tips: Mainly, it is recommended to put effort into the quality of education and the results achieved as the key factors to form a good reputation.
8. Renewable Energy Solutions
Of all the opportunities that are available for entrepreneurs in Bihar, renewable energy is one of the best opportunities. With the increasing awareness of environmental impacts, there is a need to establish an efficient source of power that will not pollute the environment. Given this perspective, Bihar is poised to take advantage of this trend given its rich natural resources.
A startup in this sector could focus on one or many of the renewable resources available including solar, wind, biomass, or small-scale hydropower. These technologies will be useful in meeting the energy demands of the state without compromising on the conservation of the environment.
The Bihar-based startup that focuses on cleantech could serve a burgeoning demand for renewable energy solutions while stimulating employment and sustainable development in the state. This sector has the opportunity to bring considerable revenues at the same time as it does not harm the environment.
Details:
- Resources: Availability of solar panels, wind turbines as well as other devices for generating renewable power.
- Market Demand: Growth in the need for sustainable power products and services.
- Potential for Growth: High potential because of government encouragement and the growing energy demand.
- Budget: High investment, with potential for government subsidies.
- Tips: Focus on providing affordable and efficient solutions to attract customers.
9. Healthcare Services
The state of Bihar is witnessing an increasing need for better health services because of the increase in population and the improvement of health standards. Healthcare has generally been a problem area in the state and the state has lacked adequate healthcare facilities, trained medical personnel, and health care services, especially for rural and underprivileged regions and people and there is a gradual trend toward changing this scenario.
The possibilities exist for private and public sectors to invest in the construction of hospitals, clinics, telemedicine services, and pharmaceutical networks. Hence, it is a potential field of investment and growth in Bihar to make it one of the most important goals to offer quality, accessible, and efficient healthcare services to the people of Bihar, thereby helping to enhance their quality of life.
Details:
- Resources: Doctors, (or other health care workers), tools, and a proper environment.
- Market Demand: Increased need for healthcare services in developed and developing countries as well as in rural areas.
- Potential for Growth: Massive opportunity because of growth in the population and increased need for healthcare services.
- Budget: High risk, but with high potential to get more returns.
- Tips: Ensure that health care services are within the reach of the common person in society.
10. E-commerce Business
This is even more apparent in the current age where more people in Bihar are connected to the internet making e-commerce a lucrative business idea. The internet access in the state has advanced and most people own smartphones hence encouraging online shopping, linking local companies to a large market.
For the businessmen of Bihar, it has become easier to establish an online store that can sell products to customers beyond the boundaries of Bihar. E-commerce is a favorable form of shopping since customers can make transactions online while enjoying a wide range of products.
There is a strong potential for the e-commerce sector to grow in Bihar because with the increasing digital literacy rate people are becoming more inclined towards online purchases which is a great opportunity for business owners.
Details:
- Resources: Stable connectivity to the World Wide Web, stock, and a selling platform.
- Market Demand: The burgeoning populace using the Internet to shop due to increased Internet use, particularly by the youths.
- Potential for Growth: High growth potential as the usage of smartphones and the internet is growing at a rapid pace.
- Budget: Depending on the size of operations these would be low to moderate in cost.
- Tips: Choose specific products and services to target that would give one a competitive edge in the market and concentrate on online advertising.
Conclusion
Bihar is home to numerous opportunities for the new generation of entrepreneurs. Due to its friendly government policies, bettering infrastructure base, and a youthful populace, it provides an excellent opportunity for different sorts of enterprises.
In the agriculture, manufacturing, service, and technology sectors, Bihar has investment opportunities for everyone. As you select the right business idea, source the required capital, and follow the right processes, then you can start and manage your business in Bihar.
FAQs
1. What incentive do I stand to gain if I decide to start my business in Bihar?
The advantages include favorable government policies, better infrastructure, availability of manpower, and a huge market for various products and services.
2. What are the sources of financing for a business in Bihar?
One can approach banks for availing loans and several schemes provide financial support, subsidies, and tax exemptions to new ventures in Bihar.
3. There is a question that arises whether one needs to register the business in Bihar.
Yes, registering your business is important as it provides the business with a legal personality, thus enabling it to access government business-related incentives and credit.
4. Some of the areas that are preferred in Bihar for business are?
Some of the good cities for investment are Patna, Gaya, and Muzaffarpur since they have developed infrastructures and big markets.
5. That is, Which sectors have the greatest potential for new business ventures in Bihar?
Some of the sectors, which have a greater prospect in Bihar are agriculture and allied activities, manufacturing industries, tourism, and some services such as education and medical.
Read about the Best Business Ideas in Pune as well.
