The working of entrepreneurs in a competitive low technology industry: the case of master weavers in the handloom industry

Abstract

It is virtually impossible for any industry to remain relevant for centuries but the handloom industry in India has been surviving since time immemorial. It is popularly believed that this industry has survived due to the monetary and regulatory interventions of the government. It is true that millions have been spent by the various governments in the last 100 years but the industry has also had the innate doggedness to survive and remain relevant to the current textile needs of the country. Textile entrepreneurs (also known as master weavers) have played an important role in making handloom extremely competitive. It is their tenacity to subsist when markets are down and their ability to innovate when the markets are up that has played a crucial role in the survival of the industry. Government of India has acknowledged that 75% of the weavers function under the master weaver segment but little is known about their functioning. This paper addresses the limited knowledge about these master weavers and throws light on their functioning. Two main entrepreneurial processes will be described - transaction costs and social capital. The aim is to document the entrepreneurial functioning of a master weaver and understand how he sells in the same markets where the cooperatives are unable to sell.