c.paramasivan Dalit owned micro, small and medium enterprises in india


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c.paramasivan Dalit owned micro, small and medium enterprises in india

  1. 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. 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. 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. 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. 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. 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. 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. References: 1. Balaji C.D. and Prasad G. (2009). Business Organisation. Margham Publications, Chennai. 2. Gupta C.B and Srinivasan NP. (2010). Entrepreneurial Development. Sultan Chand & Sons, New Delhi. 3. Gupta S.P. (2001). Statistical Methods. Sultan Chand & Sons, New Delhi. 4. Karthiresan and Radha. (2010). Business Organisation. Prasanna Publisher, Chennai. 5. Khanka S.S.(2010). Entrepreneurial Development. S.Chand & Company ltd. New Delhi. 6. Kothari C.R. (1998). Research Methods. Wishwa Prakasham, Second Edition. 7. MSME Annual Report 2007-08. 8. Munish Vohra. (2006). Entrepreneurial Development. ANMOL Publications Pvt. Ltd. New Delhi. 9. Murugupandian R. (2006). Role of Dalit and Self-Help Groups Entrepreneurs for Small Business Development in Nagappatinam District-Tamilnadu. Unpublished thesis, Department of Commerce, Bharathidasan University, Tiruchirappalli. Status of Scheduled Castes in Karnataka, Karnataka Human Development Report 2005. 10. Paramasivan C. Research Methodology for Commerce and Management. Regal Publication, New Delhi. 11. Scheduled Caste Annual Report 2009-10. 12. Status of Scheduled Castes in Karnataka, Karnataka Human Development Report 2005.