Role of Socialization in Business: Lessons from Dalit Enterprises

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See all articles by Prateek Raj

Prateek Raj

Indian Institute of Management (IIMB), Bangalore; University of Chicago - George J. Stigler Center for the Study of the Economy and the State; University College London - School of Management

Pankaj Anand

Indian Institute of Management Bangalore

Date Written: April 11, 2019

Abstract

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

Suggested Citation

Raj, Prateek and Anand, Pankaj, Role of Socialization in Business: Lessons from Dalit Enterprises (April 11, 2019). Available at SSRN: https://ssrn.com/abstract=

Prateek Raj (Contact Author)

Indian Institute of Management (IIMB), Bangalore ( email )

Bannerghatta Road
Bangalore, Karnataka 560076
India
+918026993123 (Phone)

HOME PAGE: http://www.iimb.ac.in/profile/77

University of Chicago - George J. Stigler Center for the Study of the Economy and the State ( email )

Walker Hall
Chicago, IL 60637
United States

University College London - School of Management ( email )

Gower Street
London, WC1E 6BT
United Kingdom

Pankaj Anand

Indian Institute of Management Bangalore ( email )

Bannerghatta Main Road, Bilekahalli
Bengaluru, Karnatak 560076
India

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