Role of Socialization in Business: Lessons from Dalit Enterprises
44 Pages Posted:
Date Written: April 11, 2019
Market inclusion of marginalized groups is a major challenge in mature and emerging markets. We argue that opportunities for socialization are critical for the success of business-owners from marginalized groups such as the Dalit community. Inequality in such opportunities is a major source of disadvantage that marginalized groups face, especially in emerging markets where such socialization is important for business success to overcome institutional voids. Using a national survey of households and businesses in India, and a collection of personal interviews of Dalit business-owners in Delhi NCR, we find that beyond-community social capital – especially through individuals of higher-status - is critical for the success of Dalit businesses. We show that within-community higher-status social capital of non-Dalit businesses is more resourceful, and Dalit businesses are more disadvantaged in industries that are more embedded - where businesses have higher social capital. We discuss the ways in which Dalit businesses overcome the odds they face in doing business in socially segregated markets.
Keywords: Networks and social capital, Entrepreneurial orientation, Gender and ethnicity, Market Inclusion, Dalit entrepreneurship, Emerging markets, Institutional Voids
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