Best Small Business Ideas in Kerala

Explore Small Business Ideas in Kerala

Kerala being a state with an almost 100% literacy rate has become a hub of small, medium, and even large-scale businesses. Many individuals look for how to start a business in this state, the major reason behind this is because Kerala has a very low start-up cost, all thanks to the location advantage. This reason prompts many visionary entrepreneurs to search for a business idea that would perform well in this state. Let us dive into a few of the best small business ideas in the state of Kerala.

Reason to base your start-up in Kerala

This question is faced by many people when they are in the phase of selecting a location for their start-up. Be it a resident of Kerala or some other state, business owners have preferred Kerala for their start-up, factories, or some small-scale supply. Following are the reasons to have Kerala as your base for a start-up.

1. Literacy Rate

Having the highest literacy rate in the entire country makes it easier for business owners to conduct extensive marketing and excel with unique products. A major advantage of having a high literacy rate is that almost everyone is a part of the age of digitalization, a majority of them are aware of how the Internet or the digital world works, making things smooth and efficient for businesses.

2. Lower Costs

The investment required for a business is an important aspect that every business owner considers, however, the amount required at a different location and at Kerala would have a huge gap. You require very fewer funds for settling your business operation or stores in Kerala. The rates or rents in this state are less compared to the cost in other nearby areas, this again works in favour of business owners.

3. Availability of Resources

For a business, that deals in the manufacturing of products, or for a business that has a frequent need for supplies and resources, Kerala is the perfect place. The basic resources such as electricity, water, raw materials, and so on are easily available in abundance in this state. The best part is that it is available at a comparatively lower rate than in the other locations.

Read More: How to Start Pearl Farming Business ?

List of Business Ideas in Kerala

After understanding the various advantages of having your business situated in Kerala, let us now dive into the various types of small business ideas that you can go ahead with. Businesses have huge scope in Kerala, but that does not mean that any business idea would work and grant you profit, you need to search out and invest your time for the right and the most profitable type of business Idea.

1. Estate Agency Business

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As we already discussed above Kerala has become a home for many business start-ups and factory space. This has led to the profitability of people dealing in land and estate agencies. Since there is a demand for business space and area, be it rent or purchase, people approach estate agencies to get the best area and land at the best rent or expense. Hence, if you are a resident of Kerala and have good knowledge about the location, you can think about an Estate Agency.

2. Plumbing and Electrician Business

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It is observed over the years, that the individuals or agencies dealing with plumbing services or as an electrician, have decreased at some scale. Such services are required quite often at every household at a time. This explains the increasing demand and less supply of such services, in other words, an opportunity. If you are an individual who does not have experience in this field, you can set up an agency and gather people who are related to this field to your benefit.

3. Tuitions and Coaching Class Business

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As it is already known, Kerala is a state that holds the highest number of literacy rate in India, there is a huge demand for tutoring or coaching class in this state. With a reputed name or by hiring a few professional tutors with good experience in the teaching field, you can provide a good coaching class for all the students ranging from SSC to higher education. In case you do not plan for large-scale tutoring, you can also take individual or private batches of tuitions.

4. Accounting Services Business

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With so many start-ups and factories getting set up in Kerala, there is a huge demand for people excelling in Accounting services. All businesses require a clear and maintained balance sheet or Accounting of their business dealings in a given month. You can once again set up an agency of Accounting services and provide them to various small or medium-scale start-ups in the state of Kerala at reasonable rates.

Read More: How to Start Coconut Powder Making Business ?

5. Tourism Business

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Surrounded by cities and locations such as Kochi, etc, Tourism can be a very profitable business for you. Your company or agency can act as a tourist guide, or provide great packages with the help of local car services and transport, etc. There are too many services to explore in the Tourism field, and if explored properly, it can turn into a very profitable business for an individual. However, proper knowledge of the area and decent relations with the service providers is a requirement for this type of business.

6. Jewellery Business

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Another small-scale yet profitable business that can be carried out in Kerala is the Jeweller business. A Location such as Kochi is considered as a home for the oldest jewellery making businesses industries. You may start new with your fresh or no experience, however, after surviving few years in the industry you would understand all the ins and outs of this business.

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7. Franchise Business

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We have kept this business idea at the end as the investment required for a Franchise business is in lakhs, which may or may not be considered as a small-scale business idea for many, depending on the franchise they choose. Many Franchise Businesses settled in Kerala have turned to be profitable with generous demand in the area.


Kerala is a home for many start-ups and medium-scale businesses, this creates many opportunities for individuals to start a small-scale business in this region. Various best small business ideas in Kerala are Estate agency, Plumbing and Electrician, Tuitions and Coaching Class, Accounting services, Tourism, Jewellery, and Franchising Business.

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