Are you dreaming of starting your own business with just a little money? Well, you’re in luck! We’ve got the freshest scoop on small business ideas that are just perfect for Kerala known as God’s Own Country.
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Grocery & General Item Store Business, Coconut water business, Pickle/Achar Production, Spice Making Business, Bakery/Cakes/Pastries Shop, Yoga/Mindfulness/Meditation Centre, Music Class Centre, Handmade Jewellery, Ayurveda Healing Centre, Tourism, Sightseeing and Adventure Activity Business, and many more are profitable businesses in Kerala. Investment to start a new business in Kerala budgets ranging from ₹50000, ₹1 lakh to 2 lakh, under 5 lakhs, to up to 10 lakhs approx.
Is Kerala a Good Place to Start a Business?
Yes, Kerala can be a good place to start a business for several reasons:
- Kerala, often called as ‘God’s Own Country’ in our Great India. It is a state in South India and it’s history goes back to ancient vedic times. It’s well known for its unique culture, tasty food like Idli and Dosa and the Malayalam language of this place. Many people visit Kerala to see its beautiful backwaters, green hills, and beaches. It’s also famous for Ayurveda and spirituality. The economy is strong because of tourism, spices, and coconuts.
- In Kerala, setting up a business is practical and promising due to its low-cost properties and operational expenses, which are great for startups. The state’s excellent connectivity through four international airports and a robust railway network makes logistics and travel easy for business owners.
- In Kerala, people enjoy shopping at local markets where they can find fresh fruits, vegetables, and spices. They love eating traditional foods like Dosas, Idlis, and Fish Curry. Most people spend carefully, buying what they need and sometimes a little extra for special occasions. They prefer products that are good for health and the environment.
Best Small Scale Business Ideas in Kerala 2024
Start your business adventure in Kerala where even small ideas can become something great!
1. Starting a Grocery and Household Items Shop
Starting a grocery shop in Kerala is a smart idea because people always need things like rice, spices, and soap. You can find a small place in a busy area, like near a school or a bus stand. Then, fill your shop with all the things people buy every day. Be friendly and give good prices, and soon you’ll have many customers. And remember, in Kerala, a smile and fresh stock can make your shop everyone’s favourite!
| Investment | ₹50,000 to ₹2 Lakh |
| Resources | Licence, Grocery Supplies, Containers, Disposable Racks And Shelves, Packaging etc. |
| Market Demand | The market for grocery stores will have a CAGR of 10.98% from 2022 to 2030 and the market size will increase to USD 188 billion. |
| Profit Margin | ₹ 50,000 to ₹ 2.5 Lakh monthly |
2. Opening a Coconut Water Business
Opening a coconut water business in Kerala is like catching the morning dew in a glass. It’s fresh, healthy, and loved by everyone. In Kerala, where coconuts grow in plenty, you can start this business with just a few coconuts and a smile. Serve it cold, and watch people’s faces light up. It’s a simple business that keeps both hearts and bodies cool under the Kerala sun.
| Investment | ₹ 5 Lakhs – ₹ 10 Lakhs |
| Resources | Business Registration, Tour Operator Licence, Goods and Services Tax (GST) Registration, Local Municipal Licences, Environmental Clearance, Vehicle Permits, Safety and Security Compliance, Insurance, Environmental Clearances and Partnerships with Accredited Entities. |
| Market Demand | The Global Coconut Water Market size was valued at USD 7.63 Billion in 2023. It will be forecasted to USD 25.18 Billion by 2031, at a CAGR of 16.1% during the forecast period (2024-2031). |
| Profit Margin | 30% – 40% |
3. Start a Pickle/Achar Production Business
Starting a pickle business in Kerala is like adding a pinch of spice to life! In a place famous for its love of pickles, you can make tangy mango or lemon pickles that everyone will enjoy. Just get some jars, fresh ingredients, and start mixing. Sell them at local markets or to your neighbours. With Kerala’s love for pickles, you’ll have a fun business that could grow as big as a jackfruit tree!
| Investment | ₹70,000 – ₹1,00,000 |
| Resources | FSSAI Licence, GST Registration, Weighing Scale Machine, Mixer, Grinder, Utensils, Pet Jars, Oil etc |
| Market Demand | The pickle industry market was valued at USD 7.9 billion (₹648443850000) in 2018 on a global scale. It will exhibit a CAGR of 3.5% from 2019 to 2025, indicating steady growth. |
| Profit Margin | ₹25,000 to ₹35,000 monthly |
4. Start a Spice Making Business
Spice up your life by starting a spice business in Kerala! It’s the land of spices, where you can make and sell masalas that add flavour to every meal. Get some cool machines to grind the spices, and pack them in bright packets. Sell them in your shop or even to your friends and family. With Kerala’s love for spicy food, your masala business can become as popular as a cricket match!
| Investment | ₹4 Lakh to ₹10 Lakh |
| Resources | Licence, GST Registration, Raw Spices, Grinding Machine, Weighing Scale, Packaging Machine etc. |
| Market Demand | Spices market in India reached a value of ₹160676 crores in 2022. It will grow at a CAGR of 10.8% between the period of 2023 and 2028. |
| Profit Margin | ₹30,000 to ₹1 Lakh monthly |
5. Open Bakery/Cakes/Pastries Shop
Starting a bakery in Kerala is like opening a box of happiness. You can bake cakes, cookies, and pastries that smell like dreams. Find a little shop where people pass by and fill it with the magic of baking. When someone bites into your cake, they should feel joy. Keep it simple, sweet, and full of love, and your bakery will be a hit!
| Investment | ₹20,000 – ₹50,000 |
| Resources | A Workspace, Freezer, Grinders and Processors, Oven, Display Boxes, Packaging Supplies, S killed Labour, Social Media Presence etc. |
| Market Demand | Indian bakery business will gain a CAGR of 7.28% between 2021 and 2027. |
| Profit Margin | ₹50,000 to ₹1.5 lakh |
6. Start a Yoga/Mindfulness/Meditation Centre
In Kerala, where nature is so green and beautiful, you can help people find peace and happiness. Just find a quiet spot, maybe near a beach or a garden. Teach them easy yoga poses and how to breathe deeply. It’s a simple way to make everyone feel good and smile more. You can set up a centre for giving such mindfulness practice, yoga classes or meditation services.
| Investment | ₹4,00,000 – ₹6,00,000 |
Resources | Decide Studio/Centre and best location, obtain relevant licences and implement marketing strategy. |
| Market Demand | The health and fitness studio market holds a value of ₹572600 crore (approx.) globally. Over the next 5 years, it is expected to have a CAGR of 11.86%. |
| Profit Margin | Minimum of 20% – 30% per annum on total revenue. |
7. Starting a Music Class Centre
Starting a music class centre in Kerala is a great idea! Kerala is known for its love for art and culture. Indian classical music originated from South India. You can teach many forms of music like classical, folk, and even film songs. It’s important to find a good place and have different instruments. Remember to make the classes fun and easy so everyone can enjoy learning music!
| Investment | ₹8 Lakh – ₹9 Lakh |
Resources | Licence, musical instruments, office space/store, chairs, tables, music systems, skilled staff, website, social media handles etc. |
| Market Demand | The Indian performing arts market is poised to register a CAGR of 2.5%. With this swift progress. |
| Profit Margin | 40 – 50% |
8. Opening a Handmade Jewellery Business
There is a high demand for handmade jewellery not only in India but also all over the world. This credit especially goes to Indian professional and experienced artists who craft each piece carefully. Therefore, Starting a handmade jewellery business is one of the best ideas in Kerala. Generally Kerala locals like to wear these type of Jewellery too much.
| Investment | ₹8 Lakhs – ₹15 Lakhs |
| Resources | Licence, Raw Materials, Trained Staff, Workspace, Engaging Website, Active Social Media Handles, Packaging Materials etc. |
| Market Demand | The costume jewellery market in India will acquire a market value worth ₹17 thousand crores. Furthermore, this segment will witness a CAGR of 7% by 2027. |
| Profit Margin | 30% – 70% |
9. Starting a Ayurveda Healing Centre
Starting an Ayurveda healing centre in Kerala is a smart move because Kerala is famous for its ancient Ayurveda knowledge. This traditional way of healing has been passed down through generations in South India. By opening a centre, you can help people get natural treatments for their health problems. It’s a good idea to learn about Ayurvedic herbs and oils that are special in Kerala. Your centre can be a peaceful place where people come to feel better and learn about healthy living.
| Investment | ₹ 5 Lakh to ₹ 10 Lakh |
| Resources | Location, Qualified Staff, Treatment Facilities, Herbs and Oils, Licence and Permits, Marketing Strategy. |
| Market Demand | Ayurveda Healing Centres and Hospital Market size was valued at USD 1.3 Billion in 2023 and is projected to reach at a CAGR of 11.8% during the forecasted period 2024 to 2030. |
| Profit Margin | ₹ 60,000 – ₹ 5,00,000 |
10. Commence a Tourism, Sightseeing and Adventure Activity Business
Starting a tourism, sightseeing, and adventure activity business in Kerala is a wonderful idea! Kerala, known as ‘God’s Own Country’, is perfect for tourists because of its beautiful backwaters, lush green hills, and exotic wildlife. The environment is clean and green, making it a great spot for nature lovers. Places like Munnar, Alleppey, and Thekkady are famous for their scenic beauty and adventures. Starting this business here means you can show people the beauty of Kerala and give them exciting experiences!
| Investment | ₹1 lakh to ₹3 lakhs |
Resources | You require a laptop/desktop, Wi-Fi, stationary, Furniture, a website plan and a marketing strategy to promote. |
| Market Demand | India’s outbound tourism market is expanding rapidly over the past years and will grow at an 11.4% CAGR by 2032. |
| Profit Margin | ₹50000 to ₹1.5 lakh monthly |
Conclusion:
In conclusion, Kerala offers a vibrant environment for various small businesses. From grocery stores to yoga centres, each business taps into the state’s rich culture and natural resources. The coconut groves, spice gardens, and serene landscapes provide the perfect backdrop for enterprises like coconut water sales, spice making, and tourism activities. Starting a business here not only supports the local economy but also keeps Kerala’s traditions alive. So, if you’re thinking of setting up shop, Kerala’s welcoming and diverse business environment is full of opportunities waiting to be explored.
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FAQs – Top 10 Innovative and Unique Small Business Ideas in Kerala
1. What are the Top 10 Business Ideas in Kerala?
Grocery & General Item Store Business, Coconut water business, Pickle/Achar Production, Spice Making Business, Bakery/Cakes/Pastries Shop, Yoga/Mindfulness/Meditation Centre, Music Class Centre, Handmade Jewellery, Ayurveda Healing Centre, Tourism, Sightseeing and Adventure Activity Business are the top 10 business ideas in Kerala.
2. How can I find the best business idea in Kerala?
Finding the best business idea in Kerala is all about blending the state’s unique features with your interests. Start by researching Kerala’s popular sectors, like tourism and Ayurveda. Look around to see what the local community needs and how you can help. Keep up with the latest trends and think about how you can use Kerala’s resources, like spices or handcrafts. Most importantly, choose a business that helps Kerala grow while keeping its culture and nature in mind.
3. Can I start a small business in Kerala under 50,000?
Yes, there are lots of business ideas that you can start with under 50,000 such as Grocery Store Business, Bakery/Cakes and Pastries Business and others.
4. Starting a business in Kerala is a good idea?
Yes it is! Certainly! Kerala is a treasure trove of business potential, its rich culture, advanced infrastructure, and natural beauty makes it perfect for your new business. Just research and get into the market.
