Succession of Business in Russia: Motives for Owners’ Business Transfer under the Conditions of Economic Instability

Abstract

Objectives: Showing the owner's plans and revealing the grounds for the business transfer to the next generation will demonstrate the internal resources of SMEs and assess the desirability of support measures. Methods: The study was built under an ex-post-facto pilot scheme. Experimental and control groups were distinguished. Data collection was carried out by polling 90 persons - 45 representatives of family and 45 - of non-family businesses. All subjects are owners, proprietors performing the duties of director. Methods of mathematical statistics and content analysis were used to process the data. Results: There is a significant striving to pass down generated business by inheritance; it gives confidence in the recovery business dynasties in Russia. We have proposed a classification of entrepreneurs according to their relation to the business transfer to successors. Representativeness of business transfer motives is identical for family and non-family businesses. The reasons for refusing the business transfer are: following the interests of the child, big risks, sale and business liquidation. The obtained results lead us to conclude that in the field of the family business support state policies are needed: information, psychological, economic, legal aid will be in great demand. The obtained data show that these are economic motives (the success of the company) that are key reasons when deciding on the transfer of businesses. We note that the most productive motivation of successors will be calculative and affective ones. This means that already at an early age parents-entrepreneurs could include children in the company's work: put executable business tasks in front of them, attach to corporate goals. Application: Following the example of European colleagues it is necessary to organize consultative bodies whose purpose is the development of competences of family business entrepreneurs. This will improve the social status of family businesses and help them in building an effective business strategy.