Entrepreneurial Spirit in Tier-3 Cities: Deoria’s Quiet Revolution

India’s economic growth story has often been dominated by its metropolitan cities and industrial hubs, but the true pulse of transformation lies in its tier-3 towns and districts. Deoria, a small city in eastern Uttar Pradesh, exemplifies this quiet revolution, where local entrepreneurs are rewriting the rules of economic development with grit, innovation, and determination. Their stories are not just tales of individual success but also powerful examples of how entrepreneurship can create ripple effects for community upliftment and inclusive growth.

This article draws on the recent visit by a delegation from the Public Affairs Forum of India (PAFI) to Deoria at the launch of the Deoria Development Alliance (DDA). The DDA is a plan to help Deoria grow. It aims to bring together multiple stakeholders of India's growth, such as PAFI, to synergize efforts towards comprehensive progress in Deoria. The delegation observed first-hand how collaborative efforts between local stakeholders and external supporters are catalysing economic development in this city.

Building a Nation from Its Districts: Deoria

Deoria's historical roots and strategic location have long defined its unique identity. Established in 1946 and steeped in cultural significance, this eastern Uttar Pradesh district is now poised for economic transformation. Deoria's strategic advantages—robust road and rail connectivity, proximity to Gorakhpur's airport, and a youthful population (60% under 30)—position it as a dynamic region ripe for bottom-up growth. Its demographic and economic profile, transitioning from agriculture to a dynamic mix including services and manufacturing, underscores the potential for non-farm job creation and sustainable industrial ventures. Project Amrit Prayas, an initiative by Deoria’s MP Shashank Mani, targets 9.2% real growth and the creation of approximately 170,000 non-farm jobs, showcasing Deoria's ambition to drive economic diversification and become a model for district-level development.

The Rise of Local Entrepreneurs

Deoria’s entrepreneurial ecosystem is thriving with remarkable ventures that address local challenges while creating sustainable businesses. Take Mohit’s biomass waste processing factory, for instance. His enterprise converts agricultural residue into pellet fuels that serve as eco-friendly alternatives to coal in thermal power plants. Beyond profits, this venture tackles environmental concerns, generates local employment, and contributes to energy sustainability. It is a shining example of how grassroots innovation can align with global priorities like climate change mitigation.

Similarly, Poonam’s camphor manufacturing business is a testament to resilience and ingenuity. With no formal training, she learned the art of camphor production through YouTube tutorials and personal experimentation. Despite cultural barriers that traditionally restrict women’s entrepreneurial pursuits, Poonam built a thriving business supported by her family. Her products, known for their purity and unique value proposition, have gained trust in the market and are now sold online through platforms like Amazon. Her journey not only shattered societal norms but also inspired other women in her community to dream beyond traditional roles.

Challenges on the Path to Success

The path to entrepreneurship in tier-3 cities is fraught with challenges that require extraordinary perseverance to overcome. Entrepreneurs in Deoria face bureaucratic hurdles such as bribery demands for licenses, delays in obtaining industrial power connections, and high transaction costs due to inefficient transportation systems. These issues highlight the need for structural reforms to improve the ease of doing business in smaller towns.

For women entrepreneurs like Poonam, cultural resistance adds another layer of difficulty. Breaking societal norms and gaining acceptance as a businesswoman required immense courage and determination. Additionally, local products often face scepticism about quality, forcing entrepreneurs to work harder to establish trust in their markets.

Despite these obstacles, Deoria’s entrepreneurs continue to thrive by leveraging their creativity and resourcefulness. They embody the spirit of resilience that defines India’s emerging entrepreneurial landscape.

The Multiplier Effect: Community Transformation

The impact of these ventures extends far beyond individual success stories; they create ripple effects that uplift entire communities. For instance, a call centre supporting Amazon’s operations employs 200 local youth, 33% of whom are women. For many employees, this represents their first formal job and provides critical soft skills that serve as stepping stones for better career opportunities. The centre also adheres to strict security protocols, ensuring data protection while fostering professional development.

At Anshima Terrakriti, a terracotta handicraft centre run by Kalyani Kirti Singh, traditional artisans find new markets for their age-old craftsmanship. This enterprise preserves cultural heritage while creating sustainable livelihoods for local artisans.

Such initiatives prevent migration from rural areas to overcrowded cities by anchoring talent within communities. They also empower marginalized groups—particularly women—by providing them with economic independence and social mobility.

The Jagriti Model: Nurturing Local Talent

Behind many of Deoria’s success stories stands Jagriti Enterprise Centre-Purvanchal (JEC-P), an incubator that supports small and medium enterprises through mentorship, market linkages, and training workshops. JEC-P through—investment, mentorship, networks, and an overall conducive environment, provides holistic support throughout the entrepreneurial journey.

One of JEC-P’s flagship initiatives is the Jagriti Yatra—a 15-day train journey across India that connects aspiring entrepreneurs with mentors and industry leaders. This unique program fosters collaboration and inspiration among participants while showcasing successful entrepreneurial models across the country.

JEC-P also conducts digital literacy training for women entrepreneurs in Deoria, teaching essential skills like digital payments and online marketing. By bridging the technological divide, JEC-P ensures that rural entrepreneurs can compete effectively in today’s digital economy.

Rewriting India's Economic Story: Scaling the Deoria Model

To replicate Deoria's success in other tier-3 cities, we should prioritize the following:

• Streamlining Regulatory Processes: Simplify MSME registrations and industrial licensing to reduce bureaucratic hurdles.
• Investing in Infrastructure: Improve rural infrastructure, including transportation networks and reliable power supply, to lower transaction costs.
• Promoting Access to Finance: Expand access to affordable credit and financial services for rural entrepreneurs.
• Supporting Incubators and Mentorship Programs: Strengthen existing incubators like JEC-P and establish new ones to provide holistic support.
• Encouraging Digital Literacy: Equip rural entrepreneurs with digital skills to participate in the digital economy.

Conclusion: The Power of Resilience

Deoria's entrepreneurial transformation serves as a compelling model for rural development in India. By harnessing local talent, addressing regional challenges, and fostering supportive ecosystems, Deoria is rewriting its economic story and creating new opportunities for its citizens. As India strives to achieve its development goals, it must recognize and support the entrepreneurial spirit thriving in its tier-3 cities and rural districts. These unsung heroes are not just building businesses; they are building a more inclusive and prosperous India.

By PAFI Editorial