A Study on Entrepreneurial Conditions and Challenges of Dalits: With special

reference to Tumkur District

Saravana K
Research Scholar,
Department of Studies and Research in Social Work, Tumkur University
Dr.Lokesha M.U
Assistant Professor
Department of Studies and Research in Social Work, Tumkur University
it is not enough that a people are numerically in majority. They must be always
watchful, strong, well-educated and self-respecting to attain and maintain success
- Dr. B. R. Ambedkar

Abstract
The present economic status of Dalit in India is deprecated. Many
discrimination and exploitation affect to the Dalit entrepreneurs. Low level of trade
traits and untrained practice of business in particular trade makes Dalits in average
development in field of entrepreneurship. In India as per the Report of MSME, Dalit
owned enterprise are below average. Even after global open market system some
extent of Dalit entrepreneurship is increased. But still it cannot be proved that Dalit
entrepreneurship has improved, it still in transition period. The present paper focuses
on Dalit entrepreneurship challenges in Tumakuru District. Researcher used 162
samples by adopting purposive sampling technique with descriptive research design.
The response was collected with interview scheduled and it was analyzed with SPSS
17.0 software. The results were discussed in full paper.
Keywords: Dalit, Entrepreneurs, business, discrimination, economic status

Introduction
Since many centuries, Dalits have retained fiscally backward and trapped in
the nasty rotation of poverty. The still present disgrace of practice of untouchability
and casteist domination has methodically kept Dalits far from the chance of social and
economic upliftment. The stipulation of reservation for Scheduled Castes in
government employment, even though an essential positive accomplishment, has still
to addressing the requirement of the 20.13 crores Scheduled Caste population in the
country (Census, 2011).

Entrepreneurship relates to entrepreneurs managing businesses which are

oriented towards innovation and growth technologies. At present as India travels
ahead with expansion schedule as its main concern, entrepreneurs will generate
wealth and worth for society and at the same time encourage money-making trade,
and thus financial enlargement. It becomes consequently very important that Dalits
are not left at the back in this pathway of expansion (Singh).
Dalit Entrepreneurs
It is now universally acknowledged that the subordinate castes have
augmented in politics of India. Has there been a corresponding transform in the
economy? Utilizing inclusive facts on ownership of enterprise by the Economic
Census of 1990, 1998 and 2005, shows there are considerable caste differences in
entrepreneurship across India (Iyer, Khanna, & Ashutosh, 2013). The depressed class
is extensively under-represented in the ownership of enterprises and the share of the
workforce employed by them. This variance are extensive across India, have reduced
very unassumingly during 1990 and 2005, and cannot be trait to wide differences in
right to use to physical or human capital (Iyer, Khanna, & Ashutosh, 2013). And even
some concern that margin of entrepreneurship in India delay after other countries with
alike income levels (Ghani, Kerr, & OConnell, 2011)
A narrative that the rich have benefited more than the poor, the towns and
cities more than the villages, and the upper castes more than the lower castes has
acquired salience in several quarters (Iyer, Khanna, & Ashutosh, 2013).

Dalit

Entrepreneurs, there are major distinctions in compact traits across caste categories.
Enterprises owned by members of Scheduled Caste be predisposed to be minor, are
fewer likely to employ labour from external the family, and more possibly to belong
to the informal or unorganised sector.
Caste based entrepreneurship
Dalits have operated many traditional and cottage industries like pottery,
leather work and handicrafts. The required skills to operate these enterprises have
been transferred from one generation to another generation. The monopoly of Dalits
enterprises were fan-making, leather craft and manufacturing musical instrument but
these products are required more modern technology. Another issue that adds to the
charisma of entrepreneurship in the framework of Dalit community is the sense of
self-worth and independence that it generates (Verma & Pandey, 2015).

Table 1Caste based entrepreneurship Practice

Rank

State

SC Entrepreneurs*

Tamilnadu

18.12

Karnataka

16.58

Uttar Pradesh

14.14

Madhyapradesh

13.65

Punjab

6.35

* In thousands
Source: the Dalit Indian Chamber of Commerce & Industry (DICCI-2015)

In 2015, according to the Dalit Indian Chamber of Commerce and Industry

(DICCI) only 18.12 thousands of Scheduled caste owns entrepreneurship in
Tamilnadu. Followed by Karnataka took 2nd place by having 16.58 thousand of
scheduled caste were own their own entrepreneurship.

Challenges Faced by the Dalit Entrepreneurs

The development of Dalit entrepreneurs area is disturbed by an amount of
challenges, hurdles and problems like lack of awareness, stiff competition from other
caste entrepreneurs, high prices of raw materials, financial constraints, managerial
constraints, technical difficulties, low level support from the society, low ability to
bear economic risk, social risk and environment risk, discrimination in selection for
entrepreneurial development training, low level of family co-operation, education,
occupation, and entrepreneurial base, lack of specialized entrepreneurial programmes
for Dalit entrepreneurs (Chellaiah, 2013).

Requirement of Dalit Entrepreneurship

Employment gives economic status to Dalits. Economics status pares the way of
social status. From previous evidence shows that, past days when an upper caste
people could boast of being capable of feeding the whole family. Dalits constitute
almost 30 percent of Indian population. In the rural sector 57 percent of the upper
caste people and 26 percent of the Dalits were in the labour force. About 56 of the
Dalit population in the rural sector are idle and unutilized. This is mainly due to
existing social customs. But now the scenarios are changing due to modernization,
urbanization and development of education and business.
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At present Dalits are seeking

Dalits are now seeking increased employment in several fields, in spread of education
and new awareness; Dalit entrepreneurs are spreading their wing to higher levels of
different entrepreneurs like engineering, electronics and energy. So today, no field is
unapproachable to trained and determined modern Indian Dalit. But still it cannot be
said that the Dalits entrepreneurship movement has taken off the ground and it is felt
that movement is still in a transition period. Dalit entrepreneurs can be planned and
developed and the need for providing appropriate awareness and environment to
promote entrepreneurship is vital importance. In the year of 2005, 95 percentage of
enterprises accounted by private entrepreneurs in India. As per the economic census
(EC) 10 percentages of Dalits were owned private entrepreneurship in rural area (Fifth
Economic Census, Government of India, 2005). Dalits in the number of private enterprises is much lower than their share in the countys rural population but Higher
Castes (HCs) other than SC, ST and OBC beats their population distributes by a
considerable boundary.

In urban areas inter-caste disparities are more pronounced.

While the Dalits share in the countrys urban population is about 15 percent (Census,
2001), their share in countrys total private enterprise is only 7 percent. On the other
hand, HCs allocations in private enterprise being 57 percent as against the population
share of 45 percent. The Dalits social group was of poorer quality both in rural and
urban areas (Thorat & Sadana, 2009)
Government Initiatives
Institutions like Department of Social Justice and Empowerment, National
Scheduled Castes Finance and Development Corporation (NSFDC) (both under the
Ministry of Social Justice and Empowerment, Government of India), and Dalit Indian
Chamber of Commerce and Industry (DICCI) cater specifically for promotion of
entrepreneurship and skill development in Dalits. In order to encourage
entrepreneurship among Scheduled Caste the scheme of Venture Capital Fund for
Scheduled Castes has established by the Department of Social Justice and
Empowerment in February 2014, the purpose of the Scheme are to develop financial
inclusion for Dalit entrepreneurs and to increase direct and indirect employment
generation for Dalit population in India.

Rationale of the Study

Dalit in India is an authoritative sector in conditions of population, vote bank and
workforce. But in entrepreneurship is low amount of involvement because of social
structure of the society which discourages Dalit community whenever they beging
startup trade. Dalit entrepreneurs were socially and economically fragmented from
conventional of societal living and they living in profound social and economical
seclusion (Paramasivan & Selvam, 2013). In Tumkur, Dalit community is sharing 15
percentage of the total population. Recently Government of India allocated SMART
city project. In Tumkur the highest monopoly is controlling by the upper castes
community it is very difficult for Dalits to survival in entrepreneurship practice. Even
Dalits are involving in different kinds of entrepreneurial practices in small and
medium scale industries and even they are facing different kind of challenges. In this
regard the present study examines the challenges faced by the Dalit entrepreneurs in
Tumakuru distict.
Material and Methods
The present study was carried out in Tumkur District. It focused Macro, Mezzo and
Micro entrepreneurs. The purpose of the study was to assess the socio-demographic
profile of the Dalit entrepreneurs as well as Challenges faced by the Dalit
entrepreneurs in Tumkur District.

Researcher used 162 samples by adopting

purposive sampling technique with descriptive research design. The structured

interview scheduled was used as a tool of data collection. The data was analysed
using mean, standard deviation and variance.
Results and Discussion
Table 2 Demographic Profile
AGE
20-30
30-40
40-50
50-60
60 And above
Total
GENDER
Male
Female

Frequency
14
18
50
58
22
162

Percent
8.6
11.1
30.9
35.8
13.6
100.0

92
70

56.8
43.2

Total
MARITAL STATUS
Single
Married
Widow/Widower
Total
EDUCATION QUALIFICATION
Illiterate
Primary
Higher Primary
Secondary (SSLC)
PUC
Degree
Post Graduation
Total
NATURE OF FAMILY
Joint Family
Nuclear Family
Total
ANNUAL INCOME OF THE FAMILY
10000 to 20000
20000 to 30000
40000 to 50000
Total

162

100.0

4
156
2
162

2.5
96.3
1.2
100.0

42
24
12
52
20
6
6
162

25.9
14.8
7.4
32.1
12.3
3.7
3.7
100.0

156
6
162

96.3
3.7
100.0

112
46
4
162

69.1
28.4
2.5
100.0

The above table shows the socio-demographic details of Dalit entrepreneurs.

A majority 35.8 (58) percentages of respondents were between the age group of 50-60
years with a mean age of 32.4 years. Majority 56.8 (92) percentages of respondents
were Male. In the study majority of the respondents i.e., 96.3 v(156) percentages of
respondents were married. Nearly 32.1 (52) percentages of respondents were having
secondary education. Majority 96.3 percentages of respondents were in joint family
and majority 69.1 (112) percentages of respondents monthly income of the household
was 10000 to 20000.
Table 3 Entrepreneurship Profile of Dalit in Tumakuru
LOCATION OF ENTERPRISE
Rural
Urban
Total
TYPE OF ENTREPRENEUR
First Generation
Second Generation
Total

Frequency
84
78
162

Percent
51.9
48.2
100.0

142
20
162

87.7
12.3
100.0
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MODE OF INDUCEMENT
Own Interest
Father/Family
Circumastance
Total
REGISTERED ENTERPRISE
Registered
Unregistered
Total
PLACE OF ENTERPRISE
Residential Place
Beside the Road
Commercial Street
Complex
Total
NATURE OF BUILDING
Own
Rented
Other
Total
AMOUNT INVESTED
1 to 5 Lakh
5 -10 Lakh
10 Lakh and above
Total

72
78
12
162

44.4
48.1
7.4
100.0

148
14
162

91.4
8.6
100.0

128
20
10
4
162

79.0
12.3
6.2
2.5
100.0

150
10
2
162

92.6
6.2
1.2
100.0

120
36
6
162

74.1
22.2
3.7
100.0

The above table indicates the entrepreneurship profile of the Dalits. Majority
51.9 (84) of Dalit entrepreneurs located their establishment in rural area and
remaining 48.2 (78) percentages of respondents having their trade in urban area. The
majority 87.7 (142) percentages of respondents were first generation entrepreneurs
and the majority 48.1 (78) percentages of respondents were existed entrepreneurship
because of influence by family and 44.4 (72) percentages of respondents were
established by their own interest. Majority 91.4 (148) establishment were registered.
And majority 79.0 (128) establishment were located at residential place. The majority
92.6 (150) percentages of enterprises was established in their own place. The
investment of enterprises was up to 1 lakh.

Table 4 Challenges faced by Dalit Entrepreneurship

Opinion

Std.
Deviation

Mean

Family members were not agreeing with decision to be an

162
entrepreneur.

2.2469

.64086

Could not manage start-up capital very easily to start the

162
venture.

2.3704

.77930

It is very hard to manage working capital.

162

2.5926

.91608

Required training/course facilities are not available in

Sylhet.

162

2.8148

1.08188

There are lacks of different skills (management/

marketing etc.) to conduct the business

162

2.7037

1.14148

Political influences hamper entrepreneurial activity.

162

2.6790

1.11263

Infrastructural problems
(water/electricity/gas/transportation etc.) are very
hazarders to run the business.

162

2.9753

4.70225

Inadequate technological knowledge creates obstacles in

to do business.

162

2.8025

1.26511

Social attitude is conservative for Dalit entrepreneurs.

162

2.7160

1.13919

Caste discrimination creates hindrance in the way of

success.

162

2.8765

1.25488

From the above table-4, it could be seen that among the ten challenges of
Dalits examined with likert scoring pattern. It found that challenges faced by Dalits
in the practice of entrepreneurship, such as family members were not agreeing with
decision to be an entrepreneur the mean score is 2.2469 (SD=.64086). Do not able
manage start-up capital very easily to start the venture the mean score is 2.3704
(SD=.77930). And also difficult to manage working capital (Turnover capital) the
mean score is 2.5926 (SD=.91608).

Required training/course facilities are not

available in Sylhet for Dalit entrepreneurs the mean score is 2.8148 (SD=1.08188).
There are lacks of different skills (management/ marketing etc.) to conduct the
business for Dalits the mean score is 2.7037 (SD=1.14148).

Due to political

influences hamper entrepreneurial activity the mean score is 2.6790 (SD=1.11263).

8

Infrastructural problems (water/electricity/gas/transportation etc.) are very hazarders

to run the business the mean score is 2.9753 (SD=4.70225). Inadequate technological
knowledge creates obstacles in to do business for Dalits the mean score is 2.8025
(SD=1.26511). Social attitude is conservative for Dalit entrepreneurs the mean score
is 2.7160 (SD=1.13919). Caste discrimination creates hindrance in the way of success
for Dalits the Mean Score is 2.8765 (SD=1.25488). It clearly founds that Dalits still
facing different kindly financial and social challenges to run their entrepreneurship.
Conclusion
The only way to improve the sustainable development of country is Entrepreneurship
which brings fruitful results in employment, flow of capital, innovation, utilization of
resources. Dalits entrepreneurship is an emerging area in the socio-economic issues
of the country; members of Dalit entrepreneurs involving themselves in
entrepreneurship have gradually increased due to changing attitude of the educated
Dalit youth, Government policies encouraging entrepreneurship and so on. Hence, in
the Tumakuru Dalits were still facing social and economical challenges. Government,
organisation and officials have to support whole heartily encouraged the dalit
entrepreneurship; hence there is a require of a methodical study on the
accomplishment of the Government schemes to discover the grade of beneficiaries.

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