The god’s own country, Kerala is a state located on the Malabar coast of India. Kerala is a beautiful state with rich culture, good food, and is a very famous tourist spot in India.
In 2019, Kerala was included in the top performers’ category of the start-up ecosystem in India. Kerala, especially Kochi is a very lucrative spot for new start-ups that is why it is also known as the financial and corporate capital of Kerala.
If you are a young entrepreneur, who is thinking to start a business in Kerala but is confused as to which business to start then, you have come to the right spot.
In this blog, we will discuss:
- 5 REASONS WHY SHOULD YOU START A BUSINESS IN KERALA
- 10 SMALL-SCALE BUSINESS IDEAS IN KERALA
5 REASONS WHY SHOULD YOU START A BUSINESS IN KERALA
KSUM’s (Kerala start-up) mission is a government policy that promotes start-ups and makes Kerala an investor-friendly state.
Kerala also permits 100% foreign ownership which makes all scale business ideas a streamline.
2. ECONOMY OF KERALA
Kerala has shown strong economic growth in past years. It also has an abundance of skilled and semi-skilled staff, which will make the hiring process a bit easy.
3. LITERACY RATE AND DIGITAL RATE
With a 100% literacy rate and 100% digital rate, it is easy to find literate employees and if you are willing to take your business online then Kerala has a wide online presence because of its 100% digital rate.
4. LOW STARTUP COST
In comparison to other states, Kerala has a relatively low cost of the property, and rent is also cheaper.
The salaries of the employees in Kerala are also low which makes it perfect to start a new business with less investment.
5. WELL CONNECTED
Kerala has extensive railways lines which keep Kerala well connected with other states of India. It also has numerous ports and airports.
These were the 5 reasons which make Kerala a perfect place to start a business now let us move on to the list of 10 small-scale business ideas in Kerala.
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10 SMALL-SCALE BUSINESS IDEAS IN KERALA
1. TOURISM AND HOTEL BUSINESS
Kerala is a very beautiful place, which attracts a lot of tourists from all around the world each year.
Tourism in Kerala provides 13% of the state’s GDP. With that said tourism business in Kerala is very lucrative. You can work as a tourist guide or open a small place for tourism-related services, you can also set up a website that provides services such as ticket booking, hotel renting, etc.
2. LEMONGRASS OIL
Kerala has a monopoly when it comes to the production of Lemongrass oil, 100% of lemongrass oil is produced and exported from Kerala, which makes this a very good small-scale business.
The labour cost in Kerala is cheap, which makes this business a low investment high-return start-up.
3. BUSINESS OF BANANA CHIPS
Banana chips are the signature snacks of Kerala. Bananas are grown in abundance in Kerala and turning them into chips is a simple process.
Starting a small plant that manufactures banana chips is a very lucrative business in Kerala. Banana chips are always in high demand and people generally prefer the Kerala manufactured banana chips.
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4. AGARBATTI MAKING
Kerala is known as God’s own country, so what could be a better small-scale business other than agarbatti making in Kerala? agarbatti making requires laborers that are readily available in Kerala and that too in cheap rates.
Kerala has its own Ayurveda therapy that tourists are fond of. Tourism is a very booming business in Kerala and no tourist leaves Kerala without their Ayurveda therapy being done. This therapy is very relaxing and frees people from stress.
You can open an ayurvedic parlour in which a very low investment is required but it is very lucrative.
6. COCONUT-BASED PRODUCTS
Coconut is a staple of Kerala. You can find coconut trees everywhere in Kerala. This also makes Kerala very famous for its coconut-based products like cookies, oil, etc.
With an abundance of coconut present in this state, you can start any small-scale factory which produces a coconut-based product and earn a fortune.
Kerala is also famous for its beaches. Tourist comes to the beach to enjoy themselves and also for sunbathing.
Beachwear is a very popular type of clothing that is suitable for beaches. Doesn’t matter if it is a man or woman, everyone wants a good pair of beachwear. You can start a beachwear store or you can also manufacture beachwear, both of them are very lucrative business ideas.
Kerala is famous for Balarampuram sarees. But they are only manufactured in Balaramuram. You can open a store that sells this kind of sarees or you can also set up an online store if you want to expand your business worldwide.
Sarees and gold are associated with prosperity in Kerala and opening a saree store is a very lucrative business idea in Kerala.
India is famous for spice and so is Kerala. Kerala’s spices are famous worldwide, Keralite pepper and cardamom are some of them. Tourists are very interested to know what species are used in their food and they are always interested in buying them.
Both online, as well as offline spice stores, are good and profitable business ideas.
10. HOME DECOR BUSINESSES
Kerala is famous for home decors, especially DIY ones. Localises of Kerala are very professional in using things present around them and turning them into home decor. Coconut shell bowls, wooden spoons, wind chimes are some examples of it.
setting up an offline home decor store is a good business idea you can also take your business worldwide by setting up an online store.
These were the 10 most profitable business ideas in Kerala.
Kerala is a very good location when it comes to start-ups and businesses. New businesses are also given a boost in Kerala as they are supported by the government.
Start-ups are expensive to start are certainly contains risk. It doesn’t matter whether your start-up is small or a big one, Kerala is a perfect location for it. The state attracts a very high volume of tourists every year which favors all business owners.