Originally Posted by AdultKing

There is a PHP Search engine, called Sphider, you could use to add sites yourself, however this seems a lot more limited than what you were originally proposing to do, the link is http://www.sphider.eu/

Sphider of course wont scale, you will be able to index a few thousand sites reliably but it will begin to break down, Sphider certainly wont index a whole country.

At this micro level, it would be possible to add affiliate links to the search results to potentially earn money from the links clicked on from search results. The question begs though, are people likely to use something so limited at an end user level ?