Institutionalization of mentoring in entrepreneurial dynasties

Abstract

The article deals with the transfer of business by senior generation to the younger members of the family.The reproduction of entrepreneurial dynasties is an important factor stabilizing the national economy. The family business is distinguished by a higher efficiency of entrepreneurial activity. It cannot be argued that the reproduction of entrepreneurial dynasties is a widespread social practice. In recent decades, the pattern “One business, three generations” has been replaced by the pattern “One generation, three businesses”. Parents’ participation in business is a priority factor in children’s choice of entrepreneurship as a direction of professional activity. Parental entrepreneurship increases the probability of including children in the business sphere several times. Family traditions and business experience make it possible to transfer social capital to young successors at a lower cost, to broadcast and adopt informal business experience and business connections. Intergenerational continuity is ensured by the formation and translation of the family culture of a business dynasty with special value-identification meanings, including a special professional ethos of family business representatives.A business dynasty can be implemented as a family company. In such a company, business and family relationships are closely intertwined. Interpersonal relationships are the most important factor in the effective functioning of a family business. It is intra-family conflicts that most often cause the collapse of the family business.The older generation of family business has not only to make over the property and power to the young, but also to ensure the continuity of the business, the implementation of mentoring, the transfer of family entrepreneurial traditions and values.The most serious threats to family business in Russia are: the difficult macroeconomic situation, compliance with the requirements of domestic legislation, competition in the domestic market, the need to implement innovations in order to preserve the competitive stability of the business.