GS IAS Logo

< Previous | Contents | Next >

Problems faced by Dalit entrepreneurs

Lack of access to existing business networks: India is one of the many countries where entrepreneurs depend on trust-based community networks to transact business. It is very difficult for a Dalit entrepreneur to break into these networks.

Caste in market: Markets, after all, exist within a societal context. Caste and community links play a role in various aspects of the Indian market, from securing capital to integration into supply chains.

Caste – sector linkage: The space enterprises by Dalits occupied in the market are also often determined by caste. Activities dealing with leather were the most important for Dalit enterprises. By and large, Dalit entrepreneurs have been trapped in low productivity, bottom of the ladder activities.

Entry barrier: The legacy model of ‘collateral based lending’ preferred by traditional Financial Institutions creates an entry barrier to aspiring Dalit entrepreneurs as they rarely possess assets that can be collateralized.