Russian private and family businesses are much more likely than the global average to have experienced growth in the last year and to be looking for growth over the next five years. 92% have grown in the last 12 months (compared with 65% globally) and 22% are aiming to grow quickly and aggressively over the next five years (compared with 12% globally).
Family businesses in Russia believe they play a vital role in their country’s economy, namely by assisting in creating jobs and adding stability to a balanced economy. They generally believe their government does not recognise the importance of private and family businesses and there is a feeling that more needs to be done to help private and family businesses, including easing access to finance and generally removing some of the perceived (unfair) advantages enjoyed by corporations (especially state-owned corporations).
Family businesses both in Russia and worldwide name staff recruitment as one of the key internal issues they face. But, private and family businesses in Russia tend to be more optimistic about meeting this challenge, with only 39% viewing it as a problem, as compared to their global peers, 43% of whom deem recruiting talent a major issue. In addition, Russian private and family businesses name profitability/margins and the availability of finance as other key internal issues. In contrast, private and family businesses globally see cash flow/cost control and company re-organisation as the other key internal issues they face.
Russian private and family businesses, like their global peers, expect that tough economic conditions and attracting and retaining the right skills will be the key challenges in five years’ time.
While private and family businesses around the world see the need to continuously innovate, Russians do not place as much importance on this issue.
57% of private and family businesses in Russia plan to sell or float their company, compared with only 17% worldwide. 10% plan to pass the business onto the next generation, while another 14% will pass on ownership of the business, but will employ non-family management.
Foreign Projects Co-ordinator, Absolut Group
It is quite common for private companies to experience problems raising capital.
Lack of government support, difficulty receiving loans, fault-finding by supervisory organisations.
[The distinguishing feature of a family business] is the ability to react quickly to a given situation, make decisions and bring them to life, bypassing the hierarchy common for state organisations.
President, Gradient group of companies
We all are in our forties still... We understand that we will be managing our business actively and doing what we are used to for another 10-15 years. Meanwhile, we are assessing our company's top managers looking for those who could substitute us in the future. We've got some talented people. I believe they can step forward and take control.
Smart Value Retail
Emotional involvement of shareholders, a higher level of energy for development, sense of belonging, of ownership, family comfort, warmth.
Concentration of power and authority makes a company flexible and quick, like a fighter jet. It is good for competition and quick decision-making.
Owner, Dymov company
Many people think that the WTO has become a key barrier for developing companies such as ours. I understand all the related risks and problems, and I'm ready to take the challenge together with my company. In fact, we see advantages and opportunities in it. We will discover new western markets. I told my employees that this is a chance for them to look at the West. What they see and what the result will be, however, is a topic for another discussion. After all, nobody forbids us from acquiring foreign companies.
We should promote the image of private companies and entrepreneurs, advocate respect for private business and reduce the amount of reporting paperwork.