Termed God’s own country, Kerala is a coastal state in the southern part of India. For years, the state has been known for its progressive culture, high literacy rate and great employment opportunities. Settled between the Arabian sea in the west and the Indian Ocean to the south, Kerala is also known for its trade and cultural importance. The state truly earns its nickname for its scenic natural beauty embedded in places like Eravikulam National Park, Edakkal Caves, Kumarakom Bird Sanctuary and much more.
The state is not only a tourist hub but also provides unique opportunities for entrepreneurs and hustlers to start successful businesses. Today, we will discuss the importance of Kerala from a business point of view and what could be the best choice for you to start a business in one of the southernmost states of India. So, let’s begin!
Why is Kerala a Great Place to Start Your Business?
On this page:
- Why is Kerala a Great Place to Start Your Business?
- List of Top 8 Business Ideas in Kerala
- Important Things to Know Before Starting Business in Kerala
1. Wide Range of Opportunities
Due to its unique geographical, cultural and historical qualities, Kerala is a great place for businesses to flourish. You can set up many different types of businesses in the state. Tourism, Spices, Education, Chemicals, Ports etc., own the main share of the GDP of Kerala.
2. Highly Developed
Kerala runs faster in terms of development when compared to the rest of the country. This major growth can be attributed to different state and central schemes and, overall, the higher literacy rate in the state. All the facilities a offline or a online business might need are already set up in Kerala to attract more entrepreneurs.
3. Well Connected
Even though more than two-thirds of Kerala is covered in the mountains, the state is well connected to the rest of the country and foreign nations. The Jewel of Southern India has a network of 11 National Highways and 72 State Highways to maintain land connectivity.
4. Kochi Airport
One of the best airports in the country, it is a major contributor to air connectivity. At the same time, more than ten ports (including major, intermediate and minor ports) account for water connectivity.
5. Digitally Sound
Kerala is one of the states with the highest levels of internet penetration. In today’s world, every business needs an online presence to survive. Due to higher data usage and educated users, Kerala provides a wider consumer base to businesses.
6. Affordable Costs
Kerala, even though ranking highest in indices like Human Development and Literacy, is comparatively cheaper than the rest of the states. Different resources can be accessed at a lesser price, helping startups to expand their business.
There may be hundreds, if not thousands, of businesses that can flourish in a place like Kerala, but we have brought a list for you that provides the maximum return with the minimum investment. Let’s take a look!
List of Top 8 Business Ideas in Kerala
1. Affiliate Marketing
Not endemic to Kerala, Affiliate Marketing is a great business anywhere in the country. It involves promoting products for retailers online and earning a commission on every sale. You do not need any particular qualification to become a successful affiliate marketer. This technique of marketing goes hand-in-hand with content creation. If you can create written, audio or visual content, you will be able to find a wider audience base to promote online products.
2. IT Solutions
If you are a keen observer of the corporate world, you must have seen that most companies have their technical offices settled in southern India. This is because of the higher literacy rate and low workforce cost. The Information Technology industry is flourishing, and every company these days require a dedicated team to keep their operations afloat. If you have a great knowledge of different aspects of IT and are confident that you can find more people to support your venture, this field may be the way for you.
3. Spice Farmer
This business may require some technical know-how and manual labour on your part. Kerala is rich in nutritional land and is known for its spice production throughout the country. The state produces important raw spices, which include pepper, vanilla, cardamom, clove, cinnamon, ginger and turmeric. And the best part? There is no shortage of demand for these products. You can easily find land and human resources to support your business and start selling your organic spices anywhere you want.
Moreover, for those who are from the village area and looking for a profitable business opportunity, we have created this amazing list of the best village business ideas in India. Do have a look.
4. Spice Trader
Spice trading goes alongside spice farming. One cannot survive without the other. A trader generally acts as an intermediary between the producer and the customers. Spice farmers need to gain the best knowledge of how to reach customers and get the best price for their production. Traders help farmers get the best price for their produce and sell these spices at a margin to wholesalers, retailers and direct consumers. This margin is their main source of income. Traders can also charge commissions from farmers for promoting their products.
5. Tourism Industry
Kerala was the choice of more than 75 lakh travelers in 2021. The tourism industry in the state is booming due to its scenic beauty, peaceful environment, and unique culture. Kerala is home to locations like Kochi, Munnar, Thiruvananthpuram, Kovalam, Kozhikode etc., which have been the top listers for travelers worldwide. You can venture into any part of the tourism industry – agencies, hotels, restaurants, transport & travel, photographer, videographer, etc., depending on your budget and business goals.
Business Ideas for Other States:
6. Banana Chips
The recent trends indicate an uptick in demand for banana chips. Health-conscious people all over the country are looking for an alternative to traditional potato chips. At this point, the Banana Chips industry could be more organized. If producing and feeding healthy snacks to a large number of food lovers is something that resounds with you, you can think about starting in this industry. One of the recent success stories seen on Shark Tank India includes the company Beyond Snack, which was also started by a Kerala resident.
Kerala provides some of the most unique and intricate works of art in clothing and jewellery. The state is home to handicrafts made from wood, bell metal, coconut shell, screw pine, straw, natural fibres, paper mache, clothes etc. Some of the most famous articles include sculptures, pottery items and murals. As an entrepreneur, you can either create a network of local artisans and produce products under your brand name, or you can become a handicraft trader to facilitate sales directly from the manufacturers.
Furthermore we have also walked through some of the best unique & new business ideas in Delhi in our latest blog. Do give it a read.
8. Tea Production
As we mentioned, more than two-thirds of Kerala is equipped in mountain regions. The state is known for its high rainfall and excellent weather conditions for tea production. Locations like Idukki, Wayanad, and Munnar are tea-growing regions. Like handicrafts, you can either start your tea plantation (if you are not worried about the budget) or become a tea trader to start a commission-based business.
Important Things to Know Before Starting Business in Kerala
1. Business Analysis
You can get a general idea about any business by reading up on it for a day or two, but to start a business, a higher level of skill, information, and knowledge is required. Before starting a business, you must research the on-ground conditions relating to demand, supply, customer perception, budget requirements, future predictions, etc. If things look good, you can go ahead with your plan.
2. Competition Analysis
Once you enter any industry, you are bound to face competitors. The level of competition depends on the nature and size of your market. You should check up on your competitors before you get too deep into your business and learn about their strategies, margins, marketing, market share, etc.
3. Cultural Sensitivity
Kerala is a state rooted in its deep history and culture. When you think about starting a business in the state, it is important to be aware of your workforce’s and the customer’s perceptions of your business. This awareness is key to your business’s long-term success.
At last, we would also like you to check our latest blog, where we have featured some of the most famous business ideas in Punjab. Do check it out, and maybe you can get some good ideas for your startup.
With some of the top business choices and the best practices right in front of your eyes, there is nothing left for you to do except start. Find the venture that you are most passionate about, do your research, and start your entrepreneurial journey. Good luck!
To start a business in Kerala, first, decide on a niche, then do your market research. Create a business plan, and then look out for your investment options. Finally, do some marketing to promote your business.
Some of the businesses you can start in Kerala are tea & coffee, banana chips, handicrafts items & jewellery, beauty salon, dairy products, and restaurants.
Depending on the nature of your business, you can either start a business from the comfort of your home or rent a store or a piece of property. Small-scale businesses like a pickle- or snack-making are frequently run from homes. Less money is invested, but the returns are greater.
Spice Business, Tea & Coffee Plantation, Dry Fruits, Ayurveda Products, and Banana Chips are some of the profitable industries in Kerala.
Homemade Sweets and Snacks, Online Bakery, Social Media Strategist, and Breakfast Joints are some of the businesses you can start with ₹10,000