The small size of the city means that when you create a business founder will face the following challenges:

1. not many consumers - so it makes no sense to open, for example, highly specialized shop (handmade cosmetics, etc.).

2. few workers with high qualifications. The most qualified personnel are working in the capital or regional centers. What would be the salary you are offered, people will not be able to do better than they can.

3. small town - a place where everyone knows everyone else. So if someone spread the rumor that went in your cafe, half the city is in it precisely will not come. On the other hand, this is a plus, as rumors of a new institution spread quickly.
In small towns there are certain advantages for business:

1. cheap labor. In General, wages in small towns are lower than in large, so the personnel costs below.

2. low price for rental of premises.

3. the lack of successful companies that are well established in the market. Quite best solution would be opening a low-cost supermarket in the town, which has not yet come "Pyaterochka" and where, in principle, there is little or supermarkets.

All of these benefits will allow you to start business with a small start-up capital.
The one who decided to open a business in a small town and I have to say goodbye to the ideas of the opening of specialized institutions. How would you not want to open a fitness center for women, where they could do aerobics, yoga and Pilates, in a small town it is unlikely to work. Easier not to invent needs, and finding unmet, which are many.
To find such a need, look at the forum of the city, the newspaper advertisement, just walk around the city. What do they need people? It will be enough to take at least five unmet needs, and then choose the one that is easier and more fun to satisfy.
It is important to take into account the specifics of the city. If it is located near the regional center, it is possible to provide its residents the same services that are provided in the regional center, but cheaper. This way you will attract clients from the regional center - they will be passed to you to save. If the city is favorable from the point of view of the ecology of the place, and next to him built the elite cottage villages, it is safe to open a restaurant, preferably with the "takeaway": the inhabitants of these villages will certainly look you up.