Thiruvananthapuram has emerged as the district with the largest number of small establishments in Kerala that operate without being formally incorporated as companies, while Kannur records the highest average annual wage per employee in the segment.
According to data from the National Statistical Office (NSO), around 3.29 lakh such establishments operate in Thiruvananthapuram, providing employment to approximately 5.38 lakh people. Five districts — Thiruvananthapuram, Malappuram, Ernakulam, Kozhikode and Thrissur — together account for about 53% of these establishments in the state.
Malappuram ranks second with around 2.82 lakh establishments, followed by Ernakulam with 2.73 lakh and Kozhikode with 2.70 lakh. Wayanad has the lowest number, with approximately 56,000 establishments.
While Thiruvananthapuram leads in the number of establishments, Ernakulam has the largest workforce in this segment. The district employs around 5.92 lakh people, putting it ahead in terms of total employment despite ranking third by establishment count.
Kannur stands out when wages are considered. The average annual wage per employee in such establishments is around Rs 2.50 lakh, the highest among Kerala districts. Ernakulam follows at approximately Rs 2.18 lakh, while Kottayam and Thrissur record average annual wages of around Rs 2.12 lakh and Rs 2.09 lakh, respectively. Alappuzha has the lowest average at about Rs 1.49 lakh.
The data also highlights significant differences in women’s participation in the state’s small-business ecosystem. Kollam records the highest share of establishments owned by women, at 35%. Thiruvananthapuram follows with 31%, while Kasaragod accounts for 29%.
Kollam also leads in the proportion of women among employees, with women making up 42.8% of the workforce in these establishments. Thiruvananthapuram follows at 39.8%, while Alappuzha records 38.1%.
Another important measure is the economic value generated per employee. Kottayam ranks first, with each employee generating an average annual economic value of approximately Rs 2.95 lakh. Idukki follows at Rs 2.41 lakh, while Thiruvananthapuram and Ernakulam record Rs 2.21 lakh and Rs 2.05 lakh, respectively.
The district-wise figures underline the varied nature of Kerala’s small-establishment economy, with different districts leading in business presence, employment, wages, women’s participation and economic value creation.
