Waste generation and its proper management at the industrial level always poses challenges for both management and governments. The issue remains a persistent dilemma, especially in developing countries like India, which has no well-formulated guidelines and policy structures for waste management. One of the main hurdles the authorities face in industrial waste management is the unaffordability of the cost incurred. So, this study is a search to identify the sustainable waste management practices of manufacturing micro and small enterprises in Kerala and the cost implications of these practices. Additionally, this study examines the challenges of enterprises while processing industrial waste. The study used a structured interview schedule to consider the insights of 180 managers of enterprises in Kerala. The test results revealed that the waste management system of micro and small enterprises is sustainable and effective and, along with the majority of the managers, ensures that the cost associated with the sustainable waste management is not affordable by them. The study offers significant implications to the management of enterprises, encouraging the adoption of sustainable practices for waste management and the government, highlighting the need to provide support and assistance to these efforts.