Best Small Business Ideas in Odisha 2025

Odisha with its rich cultural heritage, growing infrastructure and expanding consumer market, presents a wide range of opportunities for small business ventures. Agriculture and food processing stand out as promising sectors, given the state strong base in rice, pulses and seafood production, which creates demand for agribusiness, organic farming and food packaging units. Tourism also offers immense potential as Odisha is home to famous temples, beaches and wildlife sanctuaries encouraging small businesses in homestays, travel services, handicrafts and eco-tourism. 

Handloom and handicraft enterprises remain a traditional strength, with global demand for Odisha’s unique textiles and art forms like Pattachitra, providing scope for online and offline sales. Additionally, the rise of digital adoption in both urban and rural areas has opened doors for businesses in e-commerce, digital services and skill-based training centers. Small-scale manufacturing, fisheries and renewable energy projects are also gaining momentum, supported by government initiatives to boost entrepreneurship. With the right mix of local resources, creativity, and innovation, Odisha offers a fertile ground for aspiring entrepreneurs to establish sustainable and profitable small businesses.

Is Odisha a Good Place to Start a Business?

Odisha is increasingly becoming a favorable place to start a business due to its combination of natural resources, cultural strengths and growing infrastructure. The state’s economy is driven by agriculture, fisheries, handlooms, mining and tourism while new opportunities are emerging in sectors like renewable energy, digital services and e-commerce. The government has launched several initiatives to encourage entrepreneurship such as subsidies, skill development programs, and financial support for startups. Odisha rich heritage and globally recognized handicrafts also open up unique business prospects, especially in export markets. While challenges such as bureaucratic processes, uneven infrastructure in rural areas and access to skilled labor in certain industries still exist, the state’s expanding consumer base, improving connectivity, and focus on industrial growth make it a strong destination for small and medium businesses. Entrepreneurs who can leverage local resources and adapt to evolving market demands have good potential to build sustainable ventures in Odisha.

• Strong base in agriculture, fisheries, and food processing.
• Rich cultural heritage supports handicrafts, textiles, and tourism businesses.
• Government policies and incentives promote entrepreneurship and startups.
• Growing digital adoption opens doors for e-commerce and IT services.
• Expanding infrastructure and connectivity support business growth.

Best Small Scale Business Ideas in Odisha 2025

Start your business adventure in Odisha where even small ideas can become something great!

1.  Grocery, Household, General Items Shop:

Starting a grocery store in Odisha is a great idea. Grocery stores provide all the necessary items needed for running a household, like dairy products, cereals, pulses, meat, and cleaning items. Your target market would be the entire neighbourhood within 1 or 2 kilometres of your shop.

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2. Bakery/Cakes/Pastries Shop:

Starting a bakery business in Odisha can be exciting! You’ll need to decide whether you want a retail bakery where customers come directly to buy fresh goodies or a wholesale bakery that supplies baked goods to cafes, hotels, and supermarkets.

3. Cashew Nut Business:

Starting a cashew business in Odisha can be a smart move. Odisha is known for growing high-quality cashew nuts in places like Khurda, Puri, Jajpur, Ganjam, and Koraput. The state has more than 1.8 lakh hectares of land dedicated to cashew cultivation. Since the demand and prices for cashew nuts are always rising, it’s a good business opportunity.

4. Pickle/Achar Production Business:

Starting a pickle business in Odisha can be a tasty venture! Odisha is known for its diverse pickles, including mango, lime, onion, carrot, and even non-vegetarian varieties like mutton and shrimp pickles. The demand for these tangy delights remains strong, both locally and globally.

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5. Tourism/Sightseeing Business:

Odisha, known for its Jagannath Temple, historical caves, and Sun Temple, offers diverse landscapes—beaches, forests, and Chilika Lake. Starting a tourism business here can provide personalised experiences for visitors.

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6. Organic Food Business:

Today, lots of people prefer Organic food due to its nutritional benefits and health. There are lots of people who are concerned about their health and try to avoid harmful chemicals that are used in food products. So starting an organic food business is one of the best business ideas in Odisha.

7. Water Delivery Business:

Starting a purified water business in Odisha is a great initiative. Odisha’s coastal town, Puri, has already set an example by providing 24x7 safe drinking tap water to its residents and tourists. The demand for clean drinking water is high due to poor tap water quality and health awareness. To begin, select an appropriate location, assess the water quality, and set up a modest RO plant.

8. Bookstore Business:

Starting a bookstore business in Odisha can be an exciting adventure! First, research the market and decide what kind of books you want to sell—whether it’s academic textbooks, novels, or children’s books.

9. Handicrafts Business:

Starting a handicrafts business in Odisha is a great idea. Odisha is famous for its rich cultural heritage and skilled artisans. The state offers a wide variety of handicrafts, including Pattachitra paintings, stone carvings, silver filigree work, and terracotta crafts. These unique handcrafted items have both national and international appeal.

10. Artificial Jewellery Business:

Starting an artificial jewellery business in Odisha can be a creative and profitable venture. Artificial jewellery, also known as imitation or fashion jewellery, is made from non-precious materials like beads, glass, and metals. Odisha has a rich tradition of craftsmanship, and you can draw inspiration from local designs. Begin by researching popular jewellery styles, understanding your target customers’ preferences, and sourcing quality materials.

11. Tourism Industry

Tourism is one of the major contributors to Odisha’s economy. The state attracts Indian and foreign nationals visitors with its incredible national parks, wildlife sanctuaries, biosphere reserves, temples, and beaches. You can enter this industry through multiple channels such as restaurants, hotels, tour agencies, and local transportation, which help to make a successful business.

12. Food Delivery Service

Odisha is a food delivery business that is rapidly expanding due to the growing demand for convenience, especially among young professionals and students. Launching a food delivery service is an excellent business idea, given Odisha's large potential consumer base. This is a low-cost venture that you can start by either developing your application or collaborating with established players in the market.

Conclusion:

Odisha, often referred to as the “Land of Lord Jagannath,” is a captivating state on India’s eastern coast. Its lively cultural heritage, majestic temples, and amazing natural beauty make it an ideal destination for tourists. The renowned Jagannath Temple in Puri, dedicated to Lord Jagannath, Lord Balabhadra, and Devi Subhadra, draws millions of worshippers.

Odisha offers exciting opportunities for small businesses. Whether it’s setting up a grocery shop, baking delicious treats in a bakery, venturing into the cashew business, or making flavorful pickles, there’s something for everyone. Many tourists flock to Odisha for its scenic beauty, so consider starting a tours/sightseeing/tourism venture. Additionally, you can start the world of organic food and provide purified water delivery services. Don’t forget the charm of running a cosy bookstore or showcasing unique handicrafts and artificial jewellery. Odisha’s entrepreneurial spirit awaits!