GTU study maps Dalit entrepreneurship in Gujarat

Ahmedabad: A doctoral study from Gujarat Technological University (GTU) offers one of the most comprehensive assessments to date of Dalit entrepreneurship in Gujarat, detailing how many within the community are turning to business ownership as a means of economic independence and self reliance, an idea articulated by Dr B R Ambedkar.

The PhD thesis, titled ‘An In Depth Study of Dalit Entrepreneurship in Gujarat', by research scholar Jay Raval, is based on a survey of 263 Dalit entrepreneurs across all 31 districts of the state. The study is supported by 35 in depth interviews, discussions with eight bankers and government officials, and case studies from Ahmedabad, Bhavnagar and Sanand.

Raval says, "The absence of land makes formal finance almost inaccessible. That one structural gap shapes everything." According to the study, the lack of land ownership affects access to institutional finance and influences business operations. One entrepreneur from the outskirts of Gandhinagar reported that his vehicle sales remained at 2-3 units a month until he changed his surname, after which sales rose to 8-10 units a month. Another entrepreneur, originally surnamed ‘Parmar', adopted an upper caste name. Overall, 30% of respondents said they actively conceal their surnames to avoid bias.

The research also notes the limited presence of Dalit entrepreneurs in food and hospitality. Raval writes that "caste notions of ‘purity' govern consumer behaviour," resulting in Dalit entrepreneurs being more concentrated in sectors such as construction and labour contracting.

Bindiya Soni, Raval's research guide and a professor at Anand Institute of Management and Information Science, described entrepreneurship as "the most powerful tool for social reform" while pointing out that access to government support remains uneven. The study found that 68% of respondents were unaware of any entrepreneurship scheme, including 195 out of the 263 who had no knowledge of the Special Marketing Assistance Scheme. At the same time, 55% of Dalit entrepreneurs reported employing workers from other communities. "As first generation entrepreneurs, our money mathematics is different," said Devendra Khuman, an entrepreneur from Ahmedabad and former functionary of the Dalit Indian Chamber of Commerce & Industry (DICCI). "The barrier is not only caste: it's capital, confidence, and an ecosystem that is still forming."

The study records relatively high educational attainment, with 64% of respondents holding a graduation degree or higher. However, 60% of those surveyed are landless. Among those who own land, 23% possess less than 0.5 acre, limiting their access to collateral-based institutional lending.

As a result, 89% of Dalit-owned enterprises are micro-sized, and 72% operate as sole proprietorships. Half of the respondents reported a median annual turnover of less than Rs 6.5 lakh. The community's entrepreneurial participation also remains skewed by gender, with 92% male and 8% female entrepreneurs.

Raval describes the financing gap as a "chicken and egg" situation. Only 9% of respondents secured bank loans for startup capital. Instead, 44% relied on family savings, 28% on loans from friends, and about 100 respondents used their own funds entirely. The study finds that 88% of entrepreneurs own a single business, reflecting limited scope for expansion.
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