The Ministry of Social Justice and Empowerment has lunched the Ambedkar Social Innovation and Incubation Mission under venture capital fund for SCs that aims to support 1,000 start-ups with a budget of 19,320 lakh over next four years.The venture capital setup for the purpose in 2016 with a fund size of Rs 500 crore has supported 118 companies to the tune of Rs 444 crore. The Ministry said that the identification process involves Department of Science and Technology, technology institutions and business management schools of the country.
This is to support the first generation of SC businessman using modern technologies as primary means of innovation and arrange support for them in form of hand holding, guidance, mentoring along with providing equity support up to Rs 30 lakh over a period of three years.
Though the very idea is not new and the target is very minimal but definitely it will help many upcoming entrepreneurs in setting up their business through support of the Government. It is fact that SCs and many other marginalized communities have been historically deprived of getting involved in business sector for a number of reasons and the most visible causes are lack of venture capital and social acceptance in caste society.
After independence many attempts have been made to fill the gaps in many sectors including business and in order to build an inclusion and social diversity in business, the most prominent economic sector of the country, by arresting caste based monopoly of a few communities in business.
The SCs though constitute almost one fifth of the population of the country but they have very insignificant share in country’s wealth which has been monopolized by a few dominant castes that helps in concentration of wealth in the hands of a few and persistently contributing to increasing inequality.These days SCs are visible in politics, Government jobs and educational institutions because of policy of affirmative action under the provision of the constitution and similar affirmative action is also highly required in private sector business because this sector is the largest employment giver and through this move along with gainful employment, the SCs' participation in business can help in promoting their social status from job seeker to job provider.
Representation of SCs in business can be ensured through their meaningful participation in economy and social life. Economic development will influence social development and strengthen democracy, unity and integrity among fellow citizens.Way back ,the National SCs and STs Finance and Development Corporation was setup in 1989 , which was later bifurcated in 2001 only for SCs, with authorized capital of Rs 1,500 crore and the National Safai Karmacharies Financial Development Corporation was set up in 1997 with an authorized capital of Rs 710 crore to promote self-employment among SCs and most vulnerable section of SCs.
It is found that these institutions often suffer due to lack of adequate capital fund and dedicated staff to carry forward the mission and above all there is lack of political will to implement the action plan and ensure involvement of the people for whom these plans have been targeted.
The accountability, function and impacts of these institutions have never been discussed in public domain and the existing available infrastructure and experiences are also not being linked to new initiatives.
There are a number of private initiatives such as Dalit Indian Chamber of Commerce and Industry that helps in growing business among marginalized sections who are historically being denied a space in business but they have very limited presence to bring a desirable impact which only Government initiatives can do in creating a wider impact.
Leaving aside dedicated institutions and schemes, there has been general provisions made in Reserve Bank guidelines on credit policy for SCs and other marginable sections such as STs and women but these provisions are never being properly planned , implemented or monitored.
There has been no accountability by banks to such policies. The financial inclusion policy talks about priority sector lending and credit provision for SCs along with opening of braches in rural and backward areas to build access but the reality is something else in States such as Odisha.
The State Level Bankers Committee never take up issues exclusive to SCs and other marginalized sections who have not been enough competent to avail their rights and available opportunities.
Mostly the private and public financial institutions are largely managed and owned by the traditional dominant caste people in the country who have hegemonic control over decision making bodies.
In spite of policy and guidelines, the financial inclusion policy has not been properly implemented for building inclusion in business which can contribute for self –employment and inclusive growth. So any special scheme of venture fund by Government for the higher economic participation of SCs of the country will contribute to inclusive growth under the growing market economy and go on the path of redistribution the available finance capital of the country.
This will not only help in economic growth and employment but also largely contribute to reduce continued caste based social inequality that exists for many centuries in our social life.
The backward States such as Odisha with one fifth of SC population and having potentiality of natural resources must make such efforts to promote young upcoming entrepreneurs from by using the Central schemes as opportunities for employment growth while ensuring the participation of the unrepresented sections.
(manasbbsr15@gmail.com)