1. DALIT OWNED MICRO, SMALL AND MEDIUM ENTERPRISES IN INDIA
Dr. C. PARAMASIVAN
Assistant Professor & Research Supervisor,
P. MARI SELVAM,
Ph.D (F.T) Research Scholar,
Department of Commerce, Periyar EVR College,
Tiruchirappalli 620 023. Tamilnadu.
Email: paramselp@yahoo.in Cell: 9442384207
ABSTRACT
_____________________________________________________________________
The Schedule caste and Schedule Tribes in India economical deprecate in the country,
and many more discrimination to affect to the Dalit people and Dalit Entrepreneurs. The Dalit
Entrepreneurs in low average of literacy level and to improve the business traits and untrained
in particular field. Dalit owned by enterprise are below average in India as per the Report of
MSME. But now the scenarios have been changing fast with modernization, urbanization and
development of education. But still it can not 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. This article focused on the
Scheduled Caste and Scheduled Tribes Entrepreneurs in India, with reference to Micro, Small
and Medium Enterprises in India.
--------------------------------------------------------------------------------------------------------------------Key words: Scheduled Castes, Micro, Small and Medium Enterprises, Dalit Entrepreneurs
Introduction
The 1931 census, for the first time systematically categorized certain castes as ‘depressed
classes’.
Thereafter, the Government of India Act, 1935, for the first time, provided for
notification of socially disadvantaged castes as ‘Scheduled Castes’, and a list of such castes was
accordingly notified in the Government of India (Scheduled Caste Order, 1936). The history of
categorizing some castes as Scheduled Castes commenced with the Government of India Act,
1935. This step, on the part of the then British Government, was meant to treat the most
oppressed and exploited castes with a degree of special political dispensation.
Most of these
castes were known as ‘untouchable’ in the context of the Hindu social structure. Thus, the

2. ‘Schedule Caste’ category initially comprised cases that were isolated and disadvantaged by their
‘untouchability’.
(1)
“Scheduled Caste” are defined in Article 366(24) of the Constitution of
India, as ‘such castes, races or tribes or parts of or groups within such castes, races or tribes as
are deemed under article 341 to be Scheduled Castes for the purpose of the Constitution.
Scheduled Tribe communities are characterized by their distinctive culture, geographical
isolation, shyness of contact with community at large and socio-economic backwardness. (2)
Dalit Entrepreneurs
In addition to measures of Dalit Entrepreneurs, there are significant differences in firm
characteristics across caste categories. Enterprises owned by members of SCs and STs tend to be
smaller, are less likely to employ labour from outside the family, and more likely to belong to the
informal or unorganised sector. All these differences across Dalit caste categories are more
pronounced in urban areas compared to rural areas, suggesting that these results cannot be
attributed purely to social discrimination which we might except to be higher in rural areas.
Overall, our results highlight that SC and ST entrepreneurs face significant obstacles in entering
entrepreneurship, and in expanding the scale of their enterprises.
Problems of Dalit Entrepreneurs
The growth of Dalit entrepreneur’s field is haunted by a number of difficulties, snags and
problems. They are:
a) Lack of Awareness
b) Stiff competition from other caste entrepreneurs.
c) High prices of raw materials
d) Financial constraints
e) Managerial constraints
f) Technical difficulties
g) Low level support to the Society
h) Low ability to bear economic risk, social risk and environment risk.
i) Discrimination in selection for entrepreneurial development training
j) Low level of family co-operation, education, occupation, and entrepreneurial base
k) Lack of specialized entrepreneurial programmes for Dalit entrepreneurs.
Need for Dalit Entrepreneurship
Employment gives economic status to Dalits. Economics status pares the way of social
status. Gone are the days when a upper caste people could boast of being capable of feeding the

3. whole family. Dalits constitute almost 30 percent of Indian population. In the rural sector 57
percent of the upper caste people and 26percent of the Dalits were in the labour force. About 56
of the Dalit population in the rural sector is idle and unutilized. This is mainly due to existing
social customs. But now the scenarios and changing fast with modernization urbanization and
development of education and business. Dalits are now seeking gainful employment in several
fields in increasing numbers with the spread of education and new awareness Dalit entrepreneurs
are spreading their wing to higher levels of 3 entrepreneurs namely engineering, electronics and
energy.
So today, no field is unapproachable to trained and determined modern Indian Dalit.
But still it can not 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.(3)
Type of Enterprise
The different classification of Entrepreneurs in the manner that at the initial stage of
economic development, entrepreneurs have less initiative and drive and as economic
development proceeds, they become more innovating and enthusiastic.
Basing on this, he
classified entrepreneurs into four types. These are ; i) Innovating Entrepreneurs, ii) Imitative
Entrepreneurs, iii) Fabin Entrepreneurs and v) Drone Entrepreneurs (4)
Table No. 1 Type of Enterprise
(Number in Thousand)
Number of Enterprise Owned by
Sl.
No.
Type of
ST
SC
Enterprise
OBC
Total
Others
Total
No.
Percent
%
No.
Percent
%
No.
Percent
%
No.
Percent
%
Percent
%
1
Micro
116.95
7.5
43.70
2.79
587.99
37.5
736.12
47.06
1484.76
94.94
2
Small
1.82
0.11
1.05
0.06
10.35
0.66
63.31
4
76.53
4.89
3
Medium
0.13
0.008
0.09
0.006
0.27
0.01
2.20
0.14
2.69
0.17
118.90
8
44.83
3
598.62
38
801.62
51
1563.97
100
Total
Source: MSME Annual Report on 2011-2012
Table No. 1 reveals that the type of enterprises in India as per the 4th census report of
MSME.
118.90 thousands of enterprises owned by SC entrepreneurs (8%), 44.83 thousands of
enterprises owned by ST entrepreneurs (3%), 598.62 thousands of enterprises in OBC
entrepreneurs in (38%), and belong to 801.62 thousands of enterprises in other enterprises (51%).

4. As regards to Type of enterprises 1484.76 thousands of Micro enterprises (94.94%),
belongs to 76.53 thousands of Small enterprises in (4.89%), and 2.69 thousands of Medium
enterprises is (0.17%).
Nature of Activity
The Entrepreneurial activity at any time is dependent upon a complex and varying
combination of socio-economic, psychological and other factors. The various environmental
factors exercise a strong influence on the personality or personal-back-ground of the
entrepreneurs. Therefore, any attempt to understand the entrepreneurial spirit among people
should include an examination of the socio-economic origins of the entrepreneurs. The process
of interaction and adaptation between the individual and his environment goes on continuously.
Table No. 2 Nature of Activity
(Number in Thousand)
Activity
Code
Nature of
Activity
Number of Enterprise Owned by
SC
ST
OBC
Percent
Percent
Percent
No.
No.
No.
%
%
Others
Percent
No.
%
Total
Total
Percent
%
1049.
39
262.3
7
252.2
1
1563.
98
67
%
01
Manufacturing
68.35
4.37
29.87
2
373.51
24
577.6
37
02
Services
24.18
1.54
8.20
0.52
124.10
8
105.8
7
03
Repairing &
Maintenance
Total
26.38
1.68
6.76
0.43
101.01
6
118.07
7
118.91
8
44.84
3
598.62
38
801.62
51
17
16
100
Source: MSME Annual Report on 2011-2012
Table No.2 shows that Nature of activity in entrepreneurs profile in MSMEs.
1043.39 thousands of enterprises Manufacturing activity belongs (67%), 262.37
thousands of Service activity belongs (17%), and 252.21 thousands of Repairing and
Maintenance activities belongs (26%). A maximum 1043.39 thousands of enterprises belongs
to Manufacturing activities, and a Minimum of 252.21 thousands enterprises belongs to
Repairing and Maintenance activity.
Nature of Operation
Entrepreneurship is the attempt to create value through recognition of business
opportunity, the management of risk-taking appropriate to the opportunity, and through the
communicative and management skills to mobilise human, financial and material resources
necessary to bring a project to fruition. Entrepreneurship is the purposeful activity of an
Individual or a group of associated individuals, undertake to initiate, maintain or aggrandise
profit by production or distribution of economic goods and services.(5)

5. Table No. 3 Nature of Operation
(Number in Thousand)
Oper
ation
No.
Number of Enterprise Owned by
SC
ST
OBC
Percent
Percent
No.
No. Percent
No.
Nature of
Operation
%
%
Others
Percent
No.
%
Total
Total
Percent
%
%
1
Perennial
113.68
7.26
41.59
3
581.19
37
777.67
50
1514.12
96.81
2
Seasonal
4.72
0.30
2.95
0.18
15.90
1.01
22.81
1.45
46.39
2.97
3
Casual
0.51
0.03
0.29
0.01
1.53
0.09
1.14
0.07
3.47
0.22
118.91
8
44.83
3
598.62
38
801.62
51
1563.98
100
Total
Source: MSME Annual Report on 2011-2012
Table No.3 reveals that the Nature of operation wise entrepreneurs profile in MSME.
1514.12 thousands of enterprises belongs Perennial entrepreneurs (96.81%), and belongs to
46.39 thousands of Seasonal operation (2.97%), and belongs to 3.47 thousands of Casual
enterprises (0.22%).
A maximum 1514.12 thousands of enterprises belongs to Perennial Entrepreneurs and a
Minimum of 3.47 thousands of Casual enterprises.
Type of Organisation
The term organisation in this context refers to the structure within which the factors of
production such as Land, Labour, Capital and Entrepreneur are combine together to achieve the
objectives of the enterprise. It is the structural relationship among the factors of production.
The forms of organisation can be divided into two main types from the point of view of
ownership viz., Non-corporate forms and corporate forms each of which can again be classified
into three kinds. (6)
Table No. 4 Type of Organisation
(Number in Thousand)
Org.
Coe
Type
of
Organisation
Number of Enterprise Owned by
ST
OBC
SC
Percent
No.
No. Percent No. Percent
%
%
%
Others
Percent
No.
Total
Total
Percent
%
%
113.28
7
42.36
2.7
571.04
37
682.08
43
1408.76
90
2
Proprietary or
HUF
Partnership
1.92
0.12
1.03
0.06
14.19
0.90
45.59
2
62.73
4.01
3
Pvt. Company
1.47
0.9
0.54
0.03
5.79
0.3
35.61
2
43.41
3
4
Pub. Ltd.
Company
Cooperatives
0.49
0.03
0.15
0.01
1.23
0.07
6.52
2
8.39
0.54
0.55
0.03
0.21
0.01
1.46
0.09
2.50
0.16
4.72
0.30
1
5

6. 6
1.19
0.76
0.55
0.03
4.92
0.03
29.31
1.87
35.96
2.2
118.90
8
44.83
3
598.62
38
801.62
51
1563.97
100
Others
Total
Source: MSME Annual Report on 2011-2012
Table No. 4 shows that the type of organization wise entrepreneurs profile in MSME.
1408.76 thousands of entrepreneurs belongs to Proprietary or HUF enterprises (90%), 62.73
thousands of Partnership entrepreneurs (4.01%), belongs to 43.41 thousands of Private Company
enterprises (3%), 8.39 thousands of Public Limited Company enterprises is (0.54%), 4.72
thousands of Cooperatives enterprises
(0.30%), and belongs to 35.96 thousands of Other
enterprises (2.2%).
The overall highest amounted to MSME in 1408.76 thousands of Proprietary or HUF
enterprises owned by (90%), and least amounted to 4.72 thousands of Cooperatives enterprises
(0.30%).
Suggestions
Micro, Small and medium enterprises are the back bone of the economic development of
the country, which concentrates to meet the local as well as the global demands in a unique
characters of the products and services. In India, there sectors performed well and spread all
over the country according to the availability of resources and traditional methods.
MSM
enterprises performing in a constant manner even in the globalisation era with the competitive
advantages. There sectors could able to achieve the sustainable development of the country with
self reliance aspects.
There are 1563.97 thousands of MSME in the country off which only 118.90 thousands
MSME were owned by Dalit entrepreneurs which recorded only 8 per cent of the total
entrepreneurs belongs to dalit. Hence, there is a need to create awareness the entrepreneurs
among the dalit.
Dalit owned MSME is very nominal numbers which reflects the difficulties in
establishing enterprises by dalit in the country. Therefore, there is a need of special performance
to implement entrepreneurship among dalit.
Dalit entrepreneurs are mostly involved in manufacturing type of activities which are
exclusively meant for them or traditionally engaged them.
Hence, the government should
establish a separate cluster for dalit entrepreneurs.
Tamilnadu, Karnataka and Uttar Pradesh are the largest dalit entrepreneurs consists states
in the country. Hence, the government must give more priority to promote a separate department
to promote and develop dalit entrepreneurship in the country.

7. Conclusion
Dalit in the society treated as a subressed community those who are involved only to
assists the upper caste people. Dalit become entrepreneurs are highly impossible in the modern
world in the country, though few dalits become entrepreneurs due to their origin and traditions.
But the dalit entrepreneurs are still struggle to sum the business not because of their in efficiency
but because of their belonging to dalit community. In this situation there are 118.90 thousands
(8%) of MSM enterprises owned by dalit in India which indicates that, dalit do can engage
business of the opportunities ad encouragement from the government and entrepreneurs. Dalit
become entrepreneurs not only help to improve their status in the society but also it leads to
overall growth of nations.
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