Entrepreneurial households drive demand for local services as 74% ready to pay more for healthcare and education: Study

India’s economic transformation is moving beyond its metropolitan centres. A new report from EPIC World reveals a strong demand for quality healthcare and education among a large, fast-evolving segment of Indian families—Entrepreneurial Households. With 247 million such households spread across rural, semi-urban, and small-town India, the findings point to a significant market opportunity for businesses offering core services at scale and closer to home.

These Entrepreneurial Households (EHs), once at the base of India’s economic pyramid, have steadily moved up over the past two decades. They are characterised by multiple income sources, informal sector ties, and a consistent focus on long-term growth. The EPIC World survey, based on insights from over 7,700 households across 12 states, shows that 86% of EHs have more than one income source, and 84% expect their incomes to grow further in the next two years.

“There is a massive white space when it comes to non-discretionary services for about 70% of the country, which we call Entrepreneurial Households,” says Jyotsna Krishnan, CEO and co-founder at EPIC World and managing partner at Elevar Equity. “These households, once at the bottom of the pyramid 20 years ago, have grown and thrived thanks to multiple income sources and resilience. According to the survey, over 60% of these households often travel far to get quality services like education and healthcare. More importantly, they are willing to pay more to access these services locally. This is a great opportunity for long term businesses that can scale to address a critical demand.”

This willingness to pay stands out sharply in the data. Over 74% of households surveyed are open to paying more for better education and healthcare if offered in their own communities. The number climbs even higher—to 86% in healthcare and 81% in education—among households that currently travel more than an hour to access such services. In other words, the more underserved the household, the greater its willingness to invest in locally available quality services.

Despite improved infrastructure—91% of respondents reported better roads, electricity, and mobile services compared to a decade ago—local access to essential services remains patchy. Over 60% of households still need to travel far for basic education and health facilities, revealing a mismatch between rising income and stagnant service delivery.

This gap shows a distinct opportunity for businesses designed with this customer segment in mind. The report urges a shift from generalised rural outreach to "specialist companies" focused on EH needs—those that account for seasonal cash flows, informal financial behaviours, and multi-earner dynamics. These could include models like community-based healthcare via digital-physical hybrids (e.g., e-clinics), or education services delivered through existing private school infrastructure.

“The findings offer compelling evidence of commercial readiness—especially the willingness to pay for core services and the growing role of women in income generation. These are not marginal patterns; they reflect a systemic shift in how India’s unseen middle is shaping their economic futures,” says Ashish Dhir, senior director, Consumer and Retail, 1Lattice.

The scale of the opportunity is underlined by both demand and ability to pay. With most EHs living in pucca houses and actively planning investments in housing, vehicles, and businesses, they represent a financially resilient and forward-looking group. The challenge is building viable, scalable models that meet them where they are.