Role of Caste and Family Structure in Entrepreneurship Development With Special Reference to Vapi in Gujarat

Ajaykumar B. Naik Associate Professor, Rofel College Vapi, Gujarat, India ajaynaikpardi@gmail.com Dr. Subadra Ragothaman Former Head & Professor, Dept. of Eco., VNSGU, Surat, Gujarat, India subbiragurao@yahoo.com

Abstract: Economic development of a region is an outcome of purposeful human activity. In the postworld war - II economic scenario, the economists say that rate of economic growth is determined by man power and not only by the growth of capital. Economic growth is a cultural process from which economic factors cannot be separated. Buchanan and Ellis are of the opinion that the really fundamental problems of economic growth are non-economic. Most policymakers and academics agree that entrepreneurship is critical to the development and well-being of society. The present study has been conducted in Vapi G.I.D.C. which has been developed by Gujarat Industrial Development Corporation. The industrial township of Vapi holds its place of importance on the industrial map and it is the largest industrial area in Asia in term of small-scale industries, dominated by chemical industry plant, along with their unfortunate hazards. It is argued that Indian caste-system tended to support the traditions of past and tended to channel economic activity into less advantageous direction. The traditional caste-system did not permit changes in occupations. In this paper role of caste in entrepreneurship development has been discussed. Bernas study has shown that traditional occupation and social castes have very little impact in determining entry into entrepreneurs endeavours and economic factors such as access to capital and possession of business experience and technical knowledge are more important. As against this, the findings of the studies conducted by Unescos Research Centre revel a high correlation between the social caste and entrepreneurship, in the small scale sector. It has been found out that there is frequent specialization of economic function by social community. This means that the business elements of society often coincide with social communities. Family structure is also an important factor affecting the entrepreneurship development. Many economists have emphasized the importance of socio-cultural variables as important determinants of the supply of entrepreneurs. They usually believe that the institution of the joint family is a major barrier to entrepreneurial activity. The institution of the joint family dampens incentives to achieve, impedes the mobilization of capital and deters risk-taking. We endeavour to examine the effect of joint family structure on entrepreneurial activity in Vapi with the help of empirical data.