New research reveals significant income disparity faced by Dalit business owners
A recently published study sheds light on the pronounced income gaps experienced by business owners from historically marginalized communities in India. The research, conducted by experts from prominent institutions across the country, compared earnings of entrepreneurs from Dalit and other disadvantaged social groups.
The findings indicate that Dalit business owners make on average 16% less income than their non-Dalit counterparts, including owners from other socio-economically underprivileged but non-stigmatized castes such as OBCs. Surprisingly, this gap seems to widen with increasing social connections and networking opportunities of entrepreneurs. According to the authors, while education helps mitigate the effects of social stigma for Dalits, the same benefits are not observed from social capital.
The study suggests that deep-rooted prejudices against Dalit communities, perpetuated through generations, undermine their ability to leverage relationships and derive economic advantages compared to others with similar networking. In contrast, skills and qualifications allow Dalits to make comparable monetary gains irrespective of social biases. However, overcoming institutionalized stigma would require combined efforts from all sections of society through education, awareness, preferential policies and destigmatization strategies.
The research adds to the ongoing discourse on prevailing inequalities in India brought to light by other recent reports. With top income groups cornering a major share of national wealth, it is important to examine barriers faced by disadvantaged populations and dismantle obstacles hampering their progress. The findings serve as a reminder for decision makers to re-evaluate development models and allocate resources to truly benefit those facing the most exclusions.
Taking cognizance of varied challenges encountered, tailored interventions seem necessary to reduce disparities among different marginalized groups in India. While opportunities can empower many, dismantling deep-rooted prejudices requires a sustained, multi-pronged approach for creating an equitable society over time.
