40 status of dalit entrepreneurs in india

status of dalit entrepreneurs in india

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Asia Pacific Journal of Management and Entrepreneurship
A Scholarly, Peer Reviewed, Bi-Annual, Open Access, Online Research Journal

Volume 2, Issue 2
April 2013


ISSN 2277-8098

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Contents
Sr.
No
Title & Name of the Author (s) Page No
1 Shaping and Developing Managerial Competencies as Strategic Goal of Corporate Type
Enterprise Operation Khalidia Ksenofontova

1-9
2 Entrepreneurial Behavior in the Context of Bangladesh: Lessons from A Few First Generation
Entrepreneurs Dr. Mohammad Tahlil Azim

10-30
3 “A Cross Sectional Study of the Awareness and Satisfaction Level of the People in the Rural &
Urban Areas of India & Bhutan in line with their Settlement Preferences in a Locality i.e.
Urban or Rural” Shad Ahmad Khan, Wahengbam Jotin Singh, Kavita Sharma

31-54
4 Multiplying Entrepreneurs: Upholding Entrepreneurship Dr. G. Nagalingappa, Prof. Neetha K.
V.

55-69
5 The Role of Emotional Intelligence in Customer Service Quality: A Review of Service Sector
Ms. Jikku Susan Kurian

70-91
6 A Study on Factors Affecting Employees’ Psychological Contract and its Impact on Employee
Motivation in BHEL EDN, Bangalore Jensmon George,

92-106
7 A Comparative Study on Air Transport and Marine Transport in India M.Saravanan,
Dr.M.Ashok Kumar

107-124
8 Financing of Micro, Small and Medium Enterprise: Challenges and Strategies
Dr. Biswadeep Mishra

125-138
9 An Analysis of Financial Performance in Power Industry in India Dr. (Mrs.) Asha Sharma

139-167
10 Non-Performing Assets of Foreign Banks in India Vivek Srivastava Dr.Sandeep K. Gupta

168-181
11 Understanding the role of Indian Business Schools in execution of Corporate Social
Responsibility (CSR) Subrata Chattopadhyay, Dr.Saumya Singh

182-197
12 Role of Internet in Sustainable Growth of Indian Tourism Industry Dr. Shalini Dubey, Priya
Parihar

198-212
13 Celebrity Endorsement through TV Medium- A Study with reference to Virudhunagar District
N.Muthukumar Dr.M.Jeyakumaran

213-233
14 Impact of Home Loan on Tax liability of Salaried Employees Dr. Y.G.Baligatti

234-248

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15 Status of Dalit Entrepreneurs in India Dr. C. Paramasivan, P. Mari Selvam

249-262
16 “Sustainability & Corporate Brand Equity Through Corporate Social Responsibility Initiatives”
Abdul Alim Khan, Dr. D. T. Manwani

263-279

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Status of Dalit Entrepreneurs in India

Dr. C. Paramasivan
Assistant Professor & Research Supervisor,

P. Mari Selvam
Ph.D (F.T) Research Scholar,
PG & Research Department of Commerce,
Periyar EVR College, Tiruchirappalli, Tamilnadu.



Abstract
The Scheduled castes, since old ages, have been victims of socio-economic exploitation and have been
relegated to low income generating occupations, inferior trades, unhygienic environment and unclean
menial occupations. Due to the stiff competition of the business and marketability traits dalit
entrepreneurs are facing problems. In India total number of enterprises amounted to 15,64,000 out of
this scheduled caste enterprises are 1,19,000. This article is focused on the Status of Dalit
Entrepreneurs in India, with reference to Micro Small and Medium Enterprises.
Keywords: Dalit Entrepreneurs, MSME, Scheduled caste enterprises, state wise performance

Introduction
India lives in its villages are as true today as it was 65 years ago when India was freed from the alien
rule. The majority of its population still lives in rural areas and is dependent on agriculture for
sustenance. A significant proportion of this population lives under poverty, which is a complex
phenomenon and manifests itself in a myriad ways. The poor not only suffer from low and high
unemployment, but also low life expectancy, low level of business traits of competence its dalit
entrepreneurs. The more competition and caste dominated in the society. Show the dalit entrepreneur’s
success is critical path of the business. There 14, 45,000 enterprises in India for other caste enterprises,
out of dalit enterprises in 1, 19,000. Dalit entrepreneurs steady to working and their positive motive for

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the business.
Entrepreneurship
Entrepreneurship is the attempt to creative value through recognition of business opportunity, the
management of risk-taking appropriate to the opportunity, and through the communicative and
management skills to mobilize human, financial, and material resources necessary to bring a project to
fruition. Entrepreneurship is a creative activity. An entrepreneur is basically an innovator who
introduces something new into the economy. The innovation may be a method of production not yet
applied in the particular branch of manufacturing, or a product with which consumers are not yet
familiar or a new source of raw material or a new market hitherto unexploited or a new combination of
means of production. An entrepreneur foresees the potentially profitable opportunity and tries to exploit
it. Innovation involves problem solving and the entrepreneur is a problem solver.
Dalit Entrepreneurs
The fund was envisaged as a way to finance the expansion and modernization of dalit-run businesses
and also fund prospective dalit entrepreneurs. What grabbed the dalit entrepreneur’s attention was a
new principle. Under existing schemes for scheduled castes, the state has been the giver and the
community the recipient. Now, dalit entrepreneurs need not worry about collateral and make rounds of
banks, as we have our own venture fund.
Socio-economic condition of Dalit entrepreneurs
The Scheduled castes entrepreneurs have been victims of socio-economic exploitation and have been
relegated to low income generating occupations, inferior trades, unhygienic environment and unclean
menial occupations. Although overt untouchability practices may be declining in many parts of the
country, caste rigidities continue to confine many scheduled caste worker in demeaning occupations,
which put them at a disadvantage when compared to other communities. The forces of urbanization,
social and protective legislations, positive discrimination and other measures taken by the Government,
have led to gradual improvement in occupational mobility and living standards over the years, but the
living conditions of the majority of scheduled castes continue to show socio-economic backwardness.
Status of Dalit Entrepreneurs
The majority of dalit entrepreneurs is poor, socially backward, and deprived of basic needs. Though
some dalits have occupied important positions in politics and government jobs, majority of them have
faced discrimination like access to education, health and honorable livelihood. The dalit entrepreneur

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generally perform menial and degrade jobs, Social backwardness, and lack of access to education. A
large majority of the scheduled castes that have become entrepreneurs have mainly ventured into those
activities that deal with their hereditary occupation. They have modified and diversified their
hereditary skills in preparing the hides and skins. It is significant to not that 9.37 per cent of them have
become industrialist out of which nearly six per cent are manufacturing a variety of goods.
Objective of the Study
The primary objective of the study is to understand the status of dalit entrepreneurs in India with the
respect of profile, nature, types and organizational structure of business.
Methodology
The study is based on descriptive in nature used secondary data from the report of MSME 2006 and
simple percentage method is used to analysis the data.
Review of Literature
Curpreet Bal et al. (2010) has pointed that through entrepreneurship, the ex-untouchables and the
downtrodden sections of the society could acquire higher economic position that raised their social
status. As a result of modifications and diversification in their work, they have been able to earn more
profits, which raised their standard of living and they moved up in the social hierarchy as well. It may
be emphasized that the artisan castes have been able to utilize their skills according to the new needs of
the modern industry and thus, are able to perform better than the other scheduled castes. Owing to their
affluence as a result of entrepreneurship, they have started asserting their political and caste status.
Divya Rajagopal (2011) has pointed that the ministry had lent Rs.2,524 crore to companies run by
members of scheduled castes and tribes during the same period last year. Though data on bank loans to
dalit entrepreneurs are not available, evidence suggests the trend may not be any different there too.
Last month, the ministry of micro, small and medium enterprises mandated 4 per cent of Government
purchases be made from units run by dalits and tribal.
Jean Luc Racine and Josiane Racine (1998) have concluded that the socio economic status of most
dalit entrepreneur is still very depressed. Most of them 72 per cent are landless agricultural laborers.
Dalits account for 23 per cent of the rural population in Tamilnadu, but own only seven percent of the
land, and even those who do own land have, for the most part, very small plots. In terms of access to
amenities, they are well below the state average. Ninety per cent of rural dalits are still illiterate; the
figure for non dalits is 10 per cent. Dalits entrepreneurs are not only experiencing poverty, they are also

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victims of violence. The official registries of violence do not tell the whole story, for all acts of
violence are not reported to the court.
Kajal Iyer (2011) has recommended that dalits were self-employed, whereas, in rural areas, 7 per cent
dalits were entrepreneurs. The 2006-07 censuses of MSMEs said that dalits account for 7.7 per cent of
the 1.55 million MSMEs in India. Today the construction business is seeing the rise of many dalit
entrepreneurs, businessmen like who no longer rely on caste quotas for jobs but have made their way
up in the private sector through open competition.
Krishna. B et al. (2009) has observed that the socio economic conditions of the dalits, human
development index, lower access to capital assets, land and livestock, wage labor and economic, market
and labor, labor market and factor market discrimination. Division of labor is discriminatory against
dalits women. Of these empowerment is one of the most important concepts, which has not been
widespread and not understood as it is on its terms. Dalit women’s access to financial, natural and
community resources are lowest compared to other high caste women and males.
Profile of Dalit Entrepreneurs
Dalits entrepreneur were self-employed, whereas, in rural areas, 7 per cent dalits were entrepreneurs.
The 2006-07 censuses of MSMEs (Micro, Small and Medium enterprises) said that dalits account for
7.7 per cent of the 1.55 million MSMEs in India. Today the construction business is seeing the rise of
many dalit entrepreneurs, businessmen like who no longer rely on caste quotas for jobs but have made
their way up in the private sector through open competition.

Table No. 5 State wise Profile of Dalit Entrepreneurship
(Number in Thousands)
State
Code

State / UT
Name
SC
[[{

Total
Total
Percent %
No. Percent %
01 Jammu &
Kashmir
0.97 0.81 14.99 0.9
02 Himachal
Pradesh
2.17 2.00 11.93 0.7
03 Punjab 6.35 5.00 48.11 3
04 Chandigarh 0.01 0.008 1.00 0.06
05 Uttarakhand 3.52 3.00 23.76 1.5
06 Haryana 2.82 2.00 33.15 2
07 Delhi 2.82 2.00 33.15 2
08 Rajasthan 4.47 4.00 54.89 3.5

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09 Uttar Pradesh 14.14 12.00 187.74 12
10 Bihar 6.20 5.00 50.04 3
11 Sikkim 0.01 0.008 0.12 0.008
12 Arunachal
Pradesh
0.01 0.008 0.42 0.02
13 Nagaland 0.07 0.05 1.33 0.08
14 Manipur 0.10 0.08 4.49 0.28
15 Mizoram 0.13 0.01 3.72 0.23
16 Tripura 0.15 0.012 1.34 0.08
17 Meghalaya 0.06 0.05 3.01 0.19
18 Assam 1.57 1.00 19.86 1
19 West Bengal 4.28 4.00 43.26 2.76
20 Jharkhand 1.41 1.00 18.19 1.1
21 Orissa 0.98 0.08 19.60 1
22 Chhattisgarh 2.85 2.00 22.77 1.4
23 Madhya
Pradesh
13.65 12.00 107.00 6.8
24 Gujarat 4.90 4.00 229.83 14.6
25 Daman & Diu 0.01 0.008 0.59 0.03
26 Dadra &
Nagar Haveli
0.02 0.016 1.72 0.11
27 Maharashtra 4.88 4.00 86.59 5.5
28 Andhra
Pradesh
2.03 2.00 45.69 2.9
29 Karnataka 16.58 14.00 136.19 8.7
30 Goa 0.04 0.033 2.62 0.16
31 Lakshadweep 0.00 0.00 0.00 0.00
32 Kerala 6.17 5.00 150.19 9.6
33 Tamilnadu 18.12 15.00 233.88 15
34 Puducherry 0.08 0.006 1.45 0.09
35 Andaman &
Nicobar Ils.
0.04 0.033 0.75 0.04
All India 118.90 100 1563.97 100
Source: MSME Annual Report on 2011-2012
State wise profile of dalit enterprises are presented in the table no. 5.
As on whole, 118.90 thousands of entrepreneurs are belongs to dalit as against the total of
1563.97 thousand total entrepreneurs. Dalit entrepreneurs are more in Tamilnadu which constitute
18.12 thousands (15%) followed by 16.58 thousands entrepreneurs in Karnataka (14%) Uttar Pradesh
(14.14 thousands), Madhya Pradesh (13.65 thousands), Punjab (6.35 thousands), Bihar (6.20
thousands), Kerala (6.17 thousands), Gujarat (4.90 thousands), Maharashtra (4.88 thousands),

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Rajasthan (4.47 thousands), West Bengal (4.28 thousands), Uttarakhand (3.52 thousands), Chhattisgarh
(2.85 thousands), Haryana (2.82 thousands), Delhi (2.82 thousands), Himachal Pradesh (2.17
thousands), Assam (1.57 thousands), Jharkhand (1.41 thousands), Orissa (0.98 thousands), Jammu &
Kashmir (0.97 thousands), Tripura (0.15 thousands), Mizoram (0.13 thousands), Manipur (0.10
thousands), Pondicherry (0.08 thousands), Nagaland (0.07 thousands), Goa (0.04 thousands), Andaman
& Nicobar Ills. (0.04 thousands), Dadra & Nagar Haveli (0.02 thousands), Chandigarh (0.01
thousands), Sikkim (0.01 thousands), Arunachal Pradesh 0.01 thousands).
Pondicherry constitutes very least number (0.08 thousands) of dalit entrepreneurs in the country
followed by Sikkim, (0.008) and Arunachal Pradesh (0.008).
Type of Enterprise
Enterprises are broadly classified into Manufacturing; and those engaged in providing rendering of
services. Both categories of enterprises have been further classified into Micro, Small, Medium, and
large enterprises based on their investment in plant and machinery for manufacturing enterprises or on
equipments (in case of enterprises proving or rendering services), and finally Repairing &
Maintenance.
Table No. 2 Type of Enterprise
(Number in Thousand)
Sl.
No.

Type of
Enterprise
SC
Total
Total
Percent %
No. Percent %
1 Micro 116.95 98.40 1484.76 94.94
2 Small 1.82 1.50 76.53 4.89
3 Medium 0.13 0.10 2.69 0.17
Total 118.90 100 1563.97 100
Source: MSME Annual Report on 2011-2012
Table no.1 reveals that the types of enterprise owned by dalit in India. There are 118.90
thousands of enterprises owned by dalit entrepreneurs, as against the total of 1563.97 thousands of
enterprises of which 116.95 thousands of enterprises belongs to micro units (98.40%) 1.82 thousands
belongs to small units (1.50%) and 0.13 thousands belongs to medium units (0.10%).
Nature of Activity

The Ministry of MSME (earlier known as Ministry of Small Scale Industries and Agro & Rural
Industries (SSI & ARI) came into being from 1999 to provide focused attention to the development and

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promotion sector. MSME Act, 2006 seeks to facilitate the development of these enterprise as also
enhance their competitiveness. It provides the first-ever legal frame work for recognition of the
concept of “enterprise” which comprises both manufacturing and service entities.
Table No. 3 Nature of Activity
(Number in Thousands)
Sl.
No.
Nature of
Activity
SC Total Total
Percent %
No. Percent %
01 Manufacturin
g
68.35 57.48 1049.39 67
02 Services 24.18 20.33 262.37 17
03 Repairing &
Maintenance
26.38 22.19 252.21 16
Total 118.91 100 1563.98 100
Source: MSME Annual Report on 2011-2012
Table no.2 indicates that the nature of activities of the dalit entrepreneurs in India. There
are 57.48 per cent of dalit entrepreneurs are involved in service activities, and 26.38 per cent are
involved in Repairing and Maintenance. It observed that, the marginality (57.48%) of the dalit
entrepreneurs involved in the manufacturing activities
Nature of Operation
Entrepreneurs set up industries which remove scarcity of essential commodities and introduce
new products. Production of goods on mass scale and manufacture of handicrafts, etc. in small scale
sector help to improve the standard of life of a common man. These offer goods at lower costs and
increase variety in consumption. Entrepreneurs in the public and private sectors help to remove
regional disparities in economic development.
Table No. 4 Nature of Operation
(Number in Thousand)
Sl.
No.
Nature of
Operation
SC

Total
Total
Percent %
No. Percent %
1 Perennial 113.68 95.60 1514.12 96.81
2 Seasonal 4.72 3.98 46.39 2.97
3 Casual 0.51 0.42 3.47 0.22
Total 118.91 100 1563.98 100
Source: MSME Annual Report on 2011-2012
Table no.3 indicates that the Nature of operation of the dalit entrepreneurs in India.
Business operation of dalit entrepreneurs are 95.60 per cent belongs to perennial, 3.98 per cent
are seasonal and 0.42 per cent are casual nature of operation. It concludes that, the marginality of the

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dalit entrepreneurs are belongs to perennial type of operation of business.
Type of Organization

Organization are broadly classified into two Categories.: i) Functional organization, ii) Team
Management, Organization different wise introducing the Entrepreneur is one who introduce new
goods, inaugurates new method of production, discovers new market and reorganizes the enterprises. It
is important to note that such entrepreneurs can work only when a certain level of development is
already achieved, and people look forward to change and environment.
Table No. 5 Type of Organizational Structure
(Number in Thousands)
Sl.
No.
Type
of
Organisation
SC
Total
Total
Percent %
No. Percent %
1 Proprietary or
HUF
113.28 95.29 1408.76 90
2 Partnership 1.92 1.61 62.73 4.01
3 Pvt.
Company
1.47 1.23 43.41 3
4 Pub. Ltd.
Company
0.49 0.41 8.39 0.54
5 Cooperatives 0.55 0.46 4.72 0.30
6 Others 1.19 1.00 35.96 2.2
Total 118.90 100 1563.97 100
Source: MSME Annual Report on 2011-2012
Table no.4 indicates that the Type of Organization of the dalit entrepreneurs in India.
Organizational structure is one of the major criteria for deciding the size and efficiency of the
business. 95.29 per cent of the dalit entrepreneurs are belongs to the proprietary type of organization,
followed by 1.61 per cent belongs to partnership firm, 1.23 per cent belongs to Private company, 0.41
per cent belongs to public limited company, 0.46 per cent belongs to co-operative services and 1.00 per
cent belongs to other types of organization owned by dalit entrepreneurs.
In terms of members of enterprise, there are 113.28 thousands of dalit entrepreneurs are belongs
to proprietary type of organization and out of 118.90 thousands of enterprises.
Major Suggestions
Entrepreneurship becomes a vital role for the socio-economic development of the country
which provides capital formation, employment generation, purchasing power and market economy. In

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this regards, promoting entrepreneurship is essential for a developing countries like India to bring the
equitable and sustainable growth.
In India, entrepreneurship is associated with the socio-culture aspects of the people and it has
become a traditional or heredity based. Since the country is caste dominated almost in all aspects,
entrepreneurs from deprived communities like dalit become highly complicated and goes through dot
of struggle to become of successful entrepreneurs in India. Dalit entrepreneurship facing various kinds
of discriminations, atrocities and violation socially, economically and psychologically.
Since the dalit population accounted to 19 per cent of the total population in the country, only
2,33,880 enterprises owned by dalit in India and mostly belongs to traditional and caste base business.
Therefore, there is a special scheme is needed to promote the dalit as entrepreneurs.
Central and state government has been established financial and non financial institutions to
promote the dalit entrepreneurship since the independence. But the result has been very poor due to
attitude of the implementing authorities and personnel. SCDFC were utilized only 20 per cent of the
allotted funds from the central Government that too also not in a result oriented activities.
Status of dalit entrepreneurs in India shows negative impact in economic development, because
these people have commitment to hard work, creators of local resources, but failed to attract the upper
caste people or the upper caste people not ready to accept the economic empowerment of dalit
entrepreneurs. It is purely caste based discrimination against dalit around the country.
Conclusion
Caste is the only matter to become an entrepreneur in India which dominates the entire quality
of business. A dalit become an entrepreneur in India is not that much of easy and he has to spent lot of
time and effort to fight against his social discrimination prevalent by caste Hindus, upper caste people
even from the Government promoting the dalit entrepreneurship is the mere concept no one serious
about its importance including dalits. Even tribal become entrepreneurs and successes in their origin
but in the case of dalit, no one able to tolerate their business empowerment in the country. In this
regards, we conclude that, status of dalit entrepreneurs is very poor as like their social status when they
become socially empowered, they can also improve their status through business.
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